London has once again emerged as Australia’s main competitor for top legal talent after revelations that Bingham McCutchen is offering newly qualified lawyers £100,000 (A$175,000) salaries.

And while Bingham pays the highest salaries for newly qualified lawyers, it is far from alone in lavishing riches on young lawyers who show promise. Bingham’s fellow US firm Latham & Watkins pays London NQs £96,000 (A$168,000) and Debevoise & Plimpton pays a generous £94,250 (A$165,000).

Many London-based US firms in fact pay far more than their Magic Circle competitors, whose salaries for new lawyers average £65,000 (A$114). However, even those dwarf the A$75,000 starting salary a highly rated NQ practicing in Australia can hope to receive from an Australian top-tier firm.

“The difference between a US and a Magic Circle firm is that you get paid really well but you also give your blood,” said Kellie Jane McLean, a recruiter for GR Law – an Australian agency that has a London office.

McLean said the expected flood of lawyers returning to Australia during the downturn did not eventuate and those who did return were mainly those who were towards the end of their overseas stay anyway. There has been an increase recently in candidate interest in moving to London, but McLean said GR Law is advising those looking to move to the UK to be careful at this stage.

“Lawyers who are on the ground are the ones finding roles,” McLean said. “Unless people are willing to go over there and do other things in the meantime it is not going to be worth applying at this time.”

However, McLean said that the situation would change and in the next 12 months she expects to see a candidate shortage in the UK similar to that occurring in Australia at the moment.

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