The Australian economy started to make a comeback in 2014, and firms responded with optimism. After cancelling 2013 salary reviews to cut costs, King & Wood Mallesons (KWM) and Herbert Smith Freehills (HSF) lifted pay freezes in July after witnessing a more robust domestic market, while KWM and also Minter Ellison also promoted more lawyers this year. Minter Ellison reported a marginal revenue increase. 

International investment into the country also continued. At the beginning of the year Jones Day announced it was opening its second Australian office in Perth after the hire of Allens construction partner Stephen McCormish, and in October Bird & Bird sealed a merger with its Australian ally Truman Hoyle, some 18 months after the two firms announced an association. Baker & McKenzie and Clyde & Co also both opened Brisbane offices and Linklaters' Asia managing partner said he would be open to a financial merger with Allens in the future. Others still interested in an Australian venture include Pinsent Masons and Dentons. Withers entered the country via an alliance arrangement in December. 

However there were still some firms, such as Hogan Lovells, who played their cards close to their chest, revealing no concrete plans either to open in the country or take it off the table altogether. Freshfields Bruckhaus Deringer meanwhile ruled out the possibility of Australian entry, despite reports of the firm previously having spoken to partners at Allens, KWM and HSF with a view to potentially launching offices in Sydney and Perth.

As for downsizing on the continent, Legal Week reported in October that the biggest firms now had significantly less partners and lawyers overall compared with five years ago. Some firms also scaled back their regional practices, with Ashurst now running its Adelaide office with no partners and Norton Rose Fulbright closing in Canberra in September. At the same time, it was revealed that KWM's decision to end its retirement scheme would affect mostly younger lawyers. 

There were also some significant moves and departures announced during the year. In June it emerged that Allen & Overy's (A&O's) senior partner in Australia Grant Fuzi was leaving the firm after four years leading its offices in Sydney and Perth, with A&O expected to hold a vote for a replacement in 2015. In September DLA Piper's former UK managing partner Andrew Darwin said he would return to the firm's offices in London after a two-year stint overseeing its operations in Australia, to be replaced by ex-Minter Ellison head John Weber, and in October Clifford Chance's Perth managing partner Michael Lishman announced he would be moving to wealth management group Gresham Partners early 2015. Other moves included those of ex-KWM duo Tony O'Malley and Tim Blue to PricewaterhouseCoopers, with the task of growing the Asia legal arm.