Working with a financial adviser can provide structure and guidance around complex financial decisions, but only if you understand what you’re paying for. Financial advice in Australia isn’t priced one single way, and costs can vary widely depending on your situation, the type of advice you need, and how long you want support.
As a broad guide, industry research and ASIC information suggest that financial adviser or financial planner fees typically range from $2,000 to $20,000 per year. Many Australians pay around $3,000–$4,000 for an initial financial plan, with additional costs if they choose ongoing advice.
This guide explains how financial adviser fees work in practice, what drives the cost, and how to judge whether the fees you’re quoted represent fair value. The financial advice regulatory environment continues to evolve following the Quality of Advice Review, so it’s important to confirm current requirements when engaging an adviser.
This article contains general information only and does not constitute personal financial advice. It does not consider your individual objectives, financial situation, or needs.
Why Financial Advice Costs Vary So Widely
It’s common for two people to receive very different fee quotes, even from advisers offering similar services. That doesn’t necessarily mean one is overpriced.
Financial advice costs vary for a range of practical reasons. In most cases, the biggest drivers are:
- Complexity – Multiple income sources, investment properties, businesses, trusts, or SMSFs increase the time and documentation required.
- Scope – A one-off strategy costs less than a long-term advice relationship with regular reviews and implementation support.
- Level of service – Some advisers offer ongoing portfolio oversight and regular meetings, while others provide limited or project-based advice.
Understanding these differences early helps put fee quotes in context and reduces the risk of comparing unlike services.
How Financial Adviser Fees Are Charged
Before any advice is provided, financial advisers must clearly explain how their fees work and provide this information in writing.
It’s also important to understand that not all fees go to your adviser. Some are paid to product providers for managing investments or superannuation. These costs are separate and are outlined later in this guide.
At a high level, adviser fees usually fall into two categories:
- One-off advice fees – for a specific piece of advice or upfront for a single financial plan.
- Ongoing advice fees – charged annually if you choose continuing advice and support.
Ongoing fees can only continue if you provide written consent each year, giving you control over whether the relationship continues.
One-Off (Upfront) Advice Fees
One-off, or upfront, advice fees cover the cost of creating your initial financial strategy. These fees apply to the initial piece of advice itself and are separate from any ongoing service arrangement you may choose later. This is often the largest single cost when you first engage a financial adviser.
Initial advice typically includes:
- Detailed fact-finding and analysis
- Strategy design and recommendations
- Preparation of a Statement of Advice (SOA) — a comprehensive advice document — or, in some cases, a shorter Letter of Advice used for more limited engagements
- Support implementing agreed recommendations
Industry data and consumer guidance commonly indicate that preparing the core advice document for a portfolio of around $400,000 may cost approximately $3,000–$4,000. In practice, total first-year setup costs can be higher once implementation work is included, which is why some clients see combined initial fees closer to $4,000–$6,000 depending on scope.
When Upfront Advice May Be Simpler or Cheaper
Not every situation requires a full financial plan.
You may be able to reduce upfront costs if you’re seeking:
- A second opinion on existing advice
- Single-issue advice (such as superannuation, retirement projections, or insurance)
- Scaled or limited advice focused on a clearly defined question
Good advisers should explain these options upfront. Financial advice does not have to be all-or-nothing.
Ongoing Advice Fees
Ongoing advice is designed to support you over time as your circumstances, goals, and markets change.
An ongoing service may include:
- Annual strategy reviews
- Portfolio monitoring and rebalancing
- Updates when your income, family, or priorities change
- Access to your adviser throughout the year
How Ongoing Fees Are Commonly Structured
There is no standard or mandatory fee model for ongoing advice. Advisers choose different structures based on how they work and who they serve.
Common approaches include:
- Flat annual fees (for example, $2,000–$5,000 per year)
- Asset-based fees, calculated as a percentage of funds under advice
- A combination of both
As an example only, an asset-based arrangement might include:
- Advice fee: around 0.50% p.a.
- Platform administration: around 0.25%–0.35% p.a.
- Investment management: around 0.50%–0.75% p.a.
Actual fees vary significantly, and some advisers do not charge asset-based advice fees at all.
When Ongoing Advice Is Worth Paying For (and When It May Not Be)
Ongoing advice may add value when your finances are evolving or complex, such as if you’re approaching retirement, you’re actively investing or drawing income, or your situation changes regularly
If your finances are simple and stable, one-off or periodic advice may be enough. Annual fee consent requirements are designed to ensure you actively agree to both the services and the fees each year, rather than arrangements continuing automatically.
Product and Investment Fees (Separate to Adviser Fees)
Adviser fees are separate from product fees.
Even if you stop receiving advice, product and investment costs may still apply. These typically include platform administration charges, managed fund or ETF management fees, and superannuation administration costs. Unlike adviser fees, they are embedded within the product itself and continue for as long as you hold that investment.
These costs are disclosed in each product’s Product Disclosure Statement (PDS) and are usually deducted automatically from your balance.
Other Financial Advice Fees You May Encounter
Lower-Cost and Limited Advice Options
Not all financial advice involves a full financial plan or an ongoing service package. Many advisers offer more flexible engagement models designed for specific questions or defined projects. These options can suit clients who want targeted input without committing to a comprehensive advice arrangement.
Common fee types include:
| Fee type | What it means | When it usually applies |
|---|---|---|
| Asset-based fees | Percentage of funds under advice | Ongoing portfolio management or superannuation strategies |
| Hourly rates | Pay for time spent | Focused questions, second opinions, or strategy clarification |
| Project fees | Fixed price for defined advice | Retirement projections, super reviews, insurance strategies |
Advisers may use one structure or combine models depending on the scope and complexity of the engagement.
Insurance Advice and Commissions
When insurance is arranged through an adviser, commissions may apply. Under current legislation, commission caps are set at a maximum of:
- 60% of the first-year premium
- 20% in ongoing years
These are maximum limits. Clients can often choose fee-for-service insurance advice instead. Any commissions must be clearly disclosed before you proceed.
Ongoing Consent, Disclosure and Adviser Obligations
If you pay ongoing advice fees, your adviser must obtain your written consent each year before those fees can continue to be deducted. This consent outlines the services to be provided and the amount to be charged for the coming 12 months.
Advisers also have legal obligations to disclose fees clearly and in writing before charging them. In practice, this means you should receive documentation setting out:
- The amount you’ll pay
- Who receives each fee
- What services are included
You should also be given access to the Product Disclosure Statement (PDS) for any recommended product so you can understand product-level costs.
In addition, advisers providing personal advice to retail clients are subject to a statutory best interests duty. This requires them to act in your best interests when recommending strategies or products within the scope of advice provided.
What Affects How Much You Will Pay
There is no universal price for financial advice because no two client situations are identical. The final cost is usually influenced by the size and complexity of your assets, whether you operate through trusts or SMSFs, how frequently you want formal reviews, and the level of ongoing involvement you expect from your adviser.
In simple cases, such as a single super fund and straightforward goals, advice may be relatively contained. Where multiple entities, tax considerations, or retirement income strategies are involved, both the work and the documentation required increase accordingly. Higher fees in these cases reflect additional professional time and regulatory obligations rather than arbitrary pricing.
Financial Advice Fee Example
The example below shows how fees might apply in practice. Figures are illustrative only, but demonstrate why first-year costs are usually higher, with ongoing years dominated by advice and product fees.
Susan has $400,000 to invest.
Year 1 – Initial Advice and Setup
| Fee | Amount | % of investment | Paid to adviser | Paid to provider |
|---|---|---|---|---|
| Statement of Advice | $3,500 | – | $3,500 | – |
| Implementation | $1,500 | – | $1,500 | – |
| Ongoing advice | $2,000 | 0.50% | $2,000 | – |
| Platform administration | $1,000 | 0.25% | – | $1,000 |
| Investment management (1) | $3,000 | 0.75% | – | $3,000 |
| Total investment-related fees | $11,000 | $7,000 | $4,000 |
Ongoing Years (Example)
| Fee | Amount | % of investment |
|---|---|---|
| Ongoing advice | $2,000 | 0.50% |
| Platform + investment fees (1) | $4,000 | 1.00% |
| Estimated annual total | $6,000 | 1.50% |
(1) Investment management costs are typically deducted from your account balance or reflected in unit pricing, depending on the product structure.
Note: In some cases, advisers may charge ongoing advice fees from the first year if ongoing services begin immediately after implementation. Other advisers may only commence ongoing fees from the second year. The fees shown above are examples only. Actual costs will vary based on your circumstances and may increase if more comprehensive advice or services are required.
How to Assess Value, Not Just Price
When comparing advisers, cost alone isn’t the full story. A lower fee does not automatically mean better value, just as a higher fee does not guarantee better advice.
Value comes down to alignment — whether the services provided match what you actually need, and whether those services are delivered clearly and consistently. Transparent fee breakdowns, clearly defined review processes, and a willingness to explain alternatives are usually positive signs. By contrast, vague service descriptions or bundled costs that are difficult to unpack warrant closer scrutiny.
Questions to Ask Before Agreeing to Fees
It’s also worth clarifying whether any part of the advice fee may be tax deductible. In Australia, deductibility depends on the nature of the advice provided and your individual circumstances, so it’s sensible to confirm this with both your adviser and a registered tax professional.
Before proceeding, consider asking these questions:
- What fees will I pay upfront and ongoing?
- How are these fees calculated?
- What services are included, and what isn’t?
- Will fees change if my situation changes?
- Are lower-cost or limited advice options available?
- How can I verify your licence and qualifications on the ASIC Financial Advisers Register?
Final Takeaway
Financial advice in Australia is not automatic or open-ended. You decide whether to engage an adviser, what scope of advice you want, and whether ongoing services continue beyond each 12-month period.
Fees should be clearly explained, documented, and reviewed with you regularly. If the services provided don’t align with the fees being charged, you have the right to question the arrangement or change advisers.
Taking the time to understand how advice is priced and how those prices relate to the work being done puts you in a stronger position to make informed, confident financial decisions.
