Once you have an idea of the costs, you can decide whether paying for financial advice is right for you.
Know what you may pay for financial advice
Once you’ve decided how to choose a financial adviser, it’s important to know how to understand and compare the financial advice fees you might be charged. Financial advice fees vary depending on the financial adviser and the type of advice you want.
If you know what to expect, you can compare advisers and avoid surprises.
What affects the cost of financial advice
The cost of financial advice depends on:
help_center how complex your situation is
help_center the type of advice you need
help_center whether you want one‑off or ongoing support
help_center the adviser’s fee structure
Your adviser must explain their fees - any financial product fees and costs you may pay on top of that - before you agree to anything. Ask them for a copy of their Financial Services Guide (FSG), which should be on their website. It explains their services, fees and any links to financial products.
Common types of advice fees
Your financial adviser may charge one or more of these fees depending on your arrangements:
paid Statement of Advice (SOA) fee - A one-off fee to prepare your Statement of Advice (SOA). For initial advice, this fee is often paid separately. For ongoing advice, this is often covered by an ongoing fee arrangement.
paid Implementation fee - A one‑off fee to action the advice you received. This may include opening accounts or buying investments.
paid Fee for service - Fee for advice or other service provided by a financial adviser.
paid Asset-based fee - A percentage fee based on the total value of the assets in your portfolio. The more assets you have under management with your adviser, the higher the fee. With a percentage fee, you should be provided with the dollar amount as well, to make it easier to understand your costs.
paid Ongoing advice fee - A regular fee for personal advice including regular reviews, ongoing support and a contact point in relation to your financial plan. This is often charged monthly.
paid Review fee - A one-off fee for reviewing your financial plan and implementing any changes.
paid Hourly rate - A fixed hourly rate to provide you with advice or services and answer one-off questions, where these are not part of your ongoing fee arrangement.
Other financial costs
Insurance commissions
Advisers may receive commissions on some insurance policies that they recommend. Ask your adviser to explain any commissions, how they affect your costs, and how they affect the advice you receive.
Advisers providing personal advice about insurance products need your consent to receive commissions for selling the product to you. This includes life insurance, general insurance and consumer credit insurance.
Product fees and costs
You may pay fees or incur costs on financial products recommended to you, in addition to the fees paid to your adviser. Examples of product fees and costs include:
- investment platform fees
- administration fees
- establishment fees
- contribution fees
- investment management fees
- investment performance fees
- investment buy/sell spreads
- brokerage fees
- withdrawal fees
- insurance premiums
The fees and costs you will incur if you implement recommendations made to you should be set out in the advice you receive. You’ll also receive a Product Disclosure Statement (PDS) for a financial product as part of your application for the product. This also outlines the fees associated with the produce.
What to ask about fees
Before you agree to advice, ask your adviser:
help_center What will I pay upfront?
help_center What will I pay each year?
help_center Are there any product fees on top of your fees?
help_center How will I be charged?
help_center Can you give me the total cost in dollars?
These questions can help you compare advisers and choose the right option for your budget
Rhett asks to see all the fees
Rhett has around $400,000 to invest.
After his first meeting with a financial adviser, Rhett agrees to get a financial plan. The adviser charges $3,500 for the plan, plus a $1,500 implementation fee. There will also be additional product fees for the financial products they are recommending.
At the next meeting, Rhett receives the Statement of Advice (SOA). This outlines all the fees (and who receives each fee) for the first year if Rhett agrees to go ahead.
From this statement, Rhett can see that the total fees and premiums for the first year are $13,000. They are estimated to be $8,100 in the second year.
|
Fees Rhett has to pay |
Fees and costs ($) |
Fees as a percentage of investments |
Fees and commissions for financial adviser |
Fees for product provider |
|
Up-front fees |
||||
|
Statement of Advice fee |
$3,500 |
- |
$3,500 |
- |
|
Implementation fee |
$1,500 |
- |
$1,500 |
- |
|
Ongoing fees based on $400,000 in investments |
||||
|
Ongoing advice fees |
$2,000 |
0.50% |
$2,000 |
- |
|
Platform administration fees |
$1,000 |
0.25% |
- |
$1,000 |
|
Investment management fees(1) |
$3,000 |
0.75% |
- |
$3,000 |
|
Investment Fees in year 1 |
$11,000 | $7,000 | $4,000 | |
|
First year insurance premium(2) |
$2,000 |
- |
$1,320 |
$680 |
|
Total fees, premiums & commissions - year 1 |
$13,000 |
- |
$8,320 |
$4,680 |
|
Estimated ongoing advice and investment fees |
$6,000 |
1.5% |
$2,000 |
$4,000 |
|
Estimated second year insurance premium(3) |
$2,100 |
- |
$462 |
$1,638 |
|
Estimated fees, premiums & commissions - year 2 |
$8,100 |
|
$2,462 |
$5,638 |
(1) Investment management fees are usually deducted from investment returns before they are credited to your account.
(2) Insurance commission (66% of first year premium, including GST).
(3) Insurance commission (22% of second year premium, including GST).
Note: Fees shown are indicative amounts only and will vary. Fees are also likely to be higher if you need a broader scope of advice.
Stay on top of your costs
You may be paying an ongoing fee for advice, or have fees deducted from your superannuation. You must give written consent each year to being charged these fees, and you can end an ongoing fee arrangement at any time.
Ask your adviser when you next have to opt-in and when they will remind you. They must give you written details about the services to be provided under the arrangement, and the frequency of those services each time you consent.
If you're unhappy with the fees, advice or services from your financial adviser, the first step is to talk to them. If you're not satisfied with their response, you can make a complaint.
Personal and most general advice providers must hold an Australian Financial Services (AFS) licence. Search by postcode on the financial advisers register to find a registered financial adviser near you. The search results are randomised and in no particular order.
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