How much does financial advice cost in Australia?
Australian financial advice fees vary widely. A one-off Statement of Advice typically costs $2,500–$5,500 for a comprehensive plan. Ongoing advice retainers range from $3,000–$15,000 per year depending on complexity. Some advisers charge a percentage of assets under advice — typically 0.5–1.0% per year.
The real cost is compounding drag
The danger of ongoing advice fees is not the dollar amount in year one — it is the compounding drag over 10, 20, and 30 years. A $5,500/year fee on a $500,000 portfolio represents a 1.1% annual drag. Over 30 years at 7.5% growth, that equates to a portfolio roughly 28% smaller than if you had invested without the fee. This is not an argument against advice — it is an argument for making sure the advice is genuinely worth what you pay.
When does financial advice actually pay for itself?
Research from Vanguard's Adviser Alpha and Morningstar's Gamma studies suggests quality advice can add 1.5–3% per year in returns through behavioural coaching, tax optimisation, asset allocation, and estate planning. If your adviser delivers even 1% above what you would have achieved alone, the fee breaks even within a few years on a meaningful asset base.
What is a reasonable financial advice fee in Australia?
ASIC's regulatory guidance suggests ongoing advice fees above 1% of assets under advice are high for straightforward situations, though there is no prescribed cap. For a $500,000 portfolio, a reasonable ongoing fee is $3,000–$6,000/year (0.6–1.2%). For a $1,000,000+ portfolio, $8,000–$15,000/year (0.8–1.5%) reflects full-service complexity. The critical question is not whether the fee is competitive but whether the advice generates enough value to justify it — through tax savings, better asset allocation, or behavioural guardrails. Always request an ongoing fee disclosure document (FDS) and renewal notice annually — these are legally required and give you a clear breakdown of what you're paying and what services you received. If you haven't reviewed your ongoing advice arrangement in 2+ years, the value proposition warrants examination.
What is a Statement of Advice (SOA)?
A Statement of Advice is the legally required document an AFS licensee must provide before implementing personal advice. It explains the recommended strategy, the reasoning behind it, any conflicts of interest, the adviser's qualifications, and the fees charged. SOAs are expensive to produce because of the regulatory compliance burden — a comprehensive SOA for superannuation and investment advice can take 20–40 hours of adviser and paraplanner time. This is a primary driver of the high upfront cost of advice ($2,500–$5,500 for an initial plan). ASIC has been consulting on reforms to reduce the SOA compliance burden to improve advice accessibility, but changes had not been finalised as of mid-2025. You are entitled to keep your SOA indefinitely — it is a legal document and the basis on which your adviser can be held accountable.
What's the difference between fee-for-service and percentage-based advice?
Fee-for-service advisers charge a flat dollar amount for a defined scope of work — for example, $3,500 for a retirement income strategy review, regardless of your asset level. Percentage-based advisers charge a proportion of your investable assets under advice — for example, 0.8% per year on $600,000 ($4,800/year). Fee-for-service is generally better value for clients with large portfolios, since the dollar fee stays fixed regardless of balance growth. Percentage-based structures may be better for smaller portfolios where the minimum dollar fee would represent an excessive percentage. Post-Royal Commission, advisers are prohibited from receiving commissions on investment products (though life insurance commissions remain permitted subject to caps). All advice fees must now be disclosed transparently and consented to annually for ongoing arrangements.
Is financial advice tax deductible?
Advice fees relating to the management of existing investments or the production of assessable income are generally tax deductible. This includes fees for advice on your share portfolio, investment property, or superannuation strategy in accumulation phase. Fees for advice on personal insurance, estate planning, or structuring a business are generally not deductible. Initial advice fees (the upfront SOA cost for a new client) are generally not deductible — only ongoing advice fees tied to existing investments qualify. The ATO's Tax Ruling TR 95/35 provides the framework. In practice, many advisers apportion their fee invoice between deductible and non-deductible components — ask your adviser for this breakdown to maximise your claim.
How do I check if a financial adviser is properly licensed?
ASIC maintains the Financial Advisers Register (FAR) at moneysmart.gov.au. Search by name or licence number to verify that an adviser holds a current AFS licence, has completed the FASEA education standard (or an exemption), and has no disciplinary history. All financial advisers providing personal advice must be individually registered — not just their licensee firm. The register also shows the adviser's authorised product list and whether they have had their registration suspended or cancelled. ASIC's MoneySmart website also has a useful checklist of questions to ask a prospective adviser before engaging their services.