The ACT Legal Aid Commission has suggested that Australia's legal system adopt aspects of the European "inquisitorial'' court process and place less emphasis on the lawyer-driven "adversarial" system.

The Legal Aid Commission believed the change would help people who struggled to afford legal representation.

The commission also wanted paralegals to be able to represent clients in some court cases.

In a submission to a Productivity Commission inquiry into access to justice, Legal Aid said the court system was hard to navigate for people who were not represented by lawyers.

"The system, despite some safeguards, generally favours parties who are legally represented,'' the submission said.

"Further, litigation is expensive, stressful, time consuming, and so the justice system by its very nature is often closed to those in our society whose legal rights and interests are most at risk.''

Having judges play a greater role in proceedings would promote fairness for disadvantaged parties, the submission argued.

"Secondly, it is possible that an inquisitorial-style framework could limit the financial and time cost of bringing an action to court, further enabling disadvantaged would-be litigants to access the justice system.''

In inquisitorial-based court systems, judges play an active role in the gathering of evidence and interrogate witnesses.

Australian Family Law already blends some aspect of the inquisitorial and adversarial systems. "For example, there are some practices, such as where a child psychologist is called to give evidence they do not owe any duty to either of the adult parties to the case, that seem to fit with inquisitorial system of responsibility falling upon the court,'' the Legal Aid submission said.

Adopting inquisitorial models of practice would shift some legal costs off litigants and onto the court system.

The Legal Aid Commission also recommended that paralegals be able to represent clients seeking bail in the Magistrates' Court or pleading guilty in traffic cases, in mental health matters and tenancy disputes.

The commission also said that Legal Aid fees paid to private law firms should be at least partly tax deductible.

This would boost the ability of Legal Aid bodies to engage private lawyers to represent clients.

The Productivity Commission is due to release a draft report in April.

Under cost-cutting measures announced by the Legal Aid Commission last year, some defendants in criminal matters could be forced to choose between being represented by a barrister or a solicitor.

The commission has warned that services will have to be cut if it cannot secure additional funding in the coming years.