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10 Questions to Ask Before Hiring a Financial Planner in Australia

Questions to ask financial planner before hiring

Every day, Australians consider their finances and the big financial picture. And when trying to put it all together, it can often feel overwhelming. That’s why many Australians turn to financial planners for long-term assistance.

But the thing to understand is that choosing a financial planner is a big decision, and you want to avoid the top mistakes. So, asking the right questions can help shape the relationship and help reassure you that you are making the right decision before moving forward.

The purpose of this article is to help Australians understand the questions to ask before hiring a financial planner, so expectations, fees, and services are clear from day one. To make the process clearer, the questions below are grouped into three key areas: understanding the adviser, understanding the advice, and understanding the ongoing relationship.

If you need help with some the financial terminology used, please refer to our glossary.

At a Glance: What to Ask a Financial Planner
Understanding the Adviser Understanding the Advice Understanding the Relationship
Qualifications and experience Scope of financial planning Fees and services included
ASIC licensing Best Interest Duty Review frequency
Independence Tools and reporting First-year expectations
Client types    
Understanding the Adviser
  • Qualifications and experience
  • ASIC licensing
  • Independence
  • Client types
Understanding the Advice
  • Scope of financial planning
  • Best Interest Duty
  • Tools and reporting
Understanding the Relationship
  • Fees and services included
  • Review frequency
  • First-year expectations

Financial Planner vs Financial Adviser: What’s the Difference?

Before we jump into the list of questions to ask, let’s make sure we’re aligned on the difference between a financial planner and a financial adviser:

  • Financial adviser: In Australia, a financial adviser is licensed to provide advice and may choose to focus on specific financial products or strategies, such as investments, superannuation, or insurance.
  • Financial planner: A financial planner is a type of financial adviser who offers broader, end-to-end planning. All financial planners are financial advisers, but not all advisers provide comprehensive financial planning.

Full planning services often cover cash flow and budgeting, superannuation and retirement strategy, investment structure, insurance needs, and tax-aware planning, usually in collaboration with accountants or other professionals.

Top 10 Questions to Ask Before Hiring a Financial Planner

Now that you understand the differences, let’s get into the open-ended questions to ask a financial planner before you sign on the dotted line. These are relevant whether you’re just starting the process or just changing to a new financial adviser.

Understanding the Adviser

These questions are about a planner’s background, credentials, and how they operate.

1. What qualifications and professional experience do you have?

In Australia, financial advisers are held to high standards. They must meet education and professional requirements set by government regulators, including approved qualifications, industry standards, and ongoing study requirements.

Here are some more detailed questions to ask to help you dig deep into a planner’s background.

  • What formal qualifications and degrees do you hold?
  • Are you required to meet ongoing education standards each year, and how do you stay current?
  • How long have you been licensed to provide financial advice in Australia?
  • Do you belong to any professional associations or industry bodies? Which ones?
  • Have you worked through different market conditions or regulatory changes? Please provide an example or two.

2. Are you licensed with ASIC, and where can I verify your registration?

All financial advisers in Australia must hold or operate under an Australian Financial Services (AFS) licence. You can confirm their credentials on the ASIC Financial Advisers Register.

A planner should be willing to show you exactly where their details appear. Clear licensing information helps you confirm they’re legitimate and understand who is responsible for the advice you’ll receive.

3. Do you operate independently or through a financial institution?

Some advisers work independently, while others are aligned with banks, insurers, or investment platforms. Whether they are independent or bank-affiliated can shape how advice is delivered and which products are considered. Ask if they use an approved product list, how wide that list is, and how institutional relationships influence recommendations.

4. What types of clients do you typically work with?

Many planners work with clients at particular life stages, such as young professionals, growing families, or those preparing for retirement. Others may focus on business owners or employees.

A planner who regularly works with people in situations similar to yours is more likely to understand common challenges, priorities, and decision points that come with your circumstances.

Understanding the Advice

These questions are about how financial advice works in practice, from the scope of planning to how recommendations are monitored and reviewed.

5. Do you provide comprehensive financial planning or advice in specific areas?

Some advisers focus on advice in specific areas, such as superannuation or investments, while others offer comprehensive financial planning that looks at how all areas of your finances work together over time.

Ask for examples of what their service includes so you can decide whether you need guidance on one issue or a more complete financial picture. If the planner you are talking to doesn’t offer what you are looking for, it’s a sign that they are not the right planner for your needs.

6. How do you ensure your advice is always in my best interests?

Of course a planner is going to say they act in your best interest, but this question helps you understand how they put your interests first in real-world advice. In Australia, advisers are required to follow the Best Interest Duty, meaning advice must be demonstrably based on your goals and circumstances.

So, ask how this duty is applied in day-to-day advice, and be cautious if recommendations seem rushed, poorly explained, or tied closely to specific products without clear reasoning.

7. What tools, reports, or online access will I receive?

Many planners offer online dashboards, regular reports, or digital access to your financial information. Ask what you’ll be able to see between meetings and how progress is tracked. Clear reporting and accessible tools can make it easier to stay organised and understand how your plan is tracking against your goals.

Understanding the Relationship

These questions focus on what it’s actually like to work with a financial planner, including fees, communication, and ongoing reviews.

8. How are your fees structured, and what services are included?

Australian financial planners use several different fee structures, and it’s important to understand how each one works and what you receive in return. Some of the most common approaches include:

  • Fee-for-service: a one-off cost for specific advice or a written plan
  • Ongoing advice fees: regular payments for continued guidance and reviews
  • Flat fees: a set dollar amount agreed upfront
  • Percentage-based fees: charges linked to funds under advice

Ask what services are included in each fee arrangement, what is considered out of scope, and how often costs are reviewed.

9. How often will my financial plan be reviewed or updated?

Financial plans are not static and should be revisited as your life changes. Reviews may happen annually, twice a year, or when major events occur. Ask how often meetings typically take place and what prompts an update. Clear communication expectations help you understand how involved the relationship will be over time.

10. What should I expect during the first 12 months of working together?

Understand that you aren’t going to see results right away. In the beginning, the focus will be on gathering information, sharing your financial goals for the near-term and long-term, and implementing strategies to help you achieve those goals.

Be sure to ask how long this process usually takes and what happens after recommendations are made. Understanding the first year, from discovery through implementation and follow-ups, helps you know what to expect and how actively you’ll be involved from the start.

Summary: 10 Questions to Ask a Financial Planner
Category Question
Understanding the Adviser 1. What qualifications and professional experience do you have?
2. Are you licensed with ASIC, and where can I verify your registration?
3. Do you operate independently or through a financial institution?
4. What types of clients do you typically work with?
Understanding the Advice 5. Do you provide comprehensive financial planning or advice in specific areas?
6. How do you ensure your advice is always in my best interests?
7. What tools, reports, or online access will I receive?
Understanding the Relationship 8. How are your fees structured, and what services are included?
9. How often will my financial plan be reviewed or updated?
10. What should I expect during the first 12 months of working together?
Understanding the Adviser
  1. What qualifications and professional experience do you have?
  2. Are you licensed with ASIC, and where can I verify your registration?
  3. Do you operate independently or through a financial institution?
  4. What types of clients do you typically work with?
Understanding the Advice
  1. Do you provide comprehensive financial planning or advice in specific areas?
  2. How do you ensure your advice is always in my best interests?
  3. What tools, reports, or online access will I receive?
Understanding the Relationship
  1. How are your fees structured, and what services are included?
  2. How often will my financial plan be reviewed or updated?
  3. What should I expect during the first 12 months of working together?

Red Flags to Watch For When Choosing a Financial Planner

While these questions are important, it’s just as critical to pay close attention to how a financial planner answers them. Don’t think of your questions as simply checking a box. Understand that how a financial planner communicates, explains recommendations, and responds to hesitation can reveal quite a bit about how they work.

Here are some red flags you may experience.

  • If you feel pressured to act quickly or sign documents before you are ready to do so
  • The planner seems reluctant to thoroughly explain fees, commissions, or total costs to your satisfaction
  • Responses seem canned and not tailored to your specific questions
  • The planner is unable to provide adequate written documentation or reporting
  • The planner avoids your questions about licensing, qualifications, or affiliations

If something feels unclear or dismissive, it’s reasonable to pause and seek another opinion before committing.

Final Thoughts: Choosing the Right Financial Planner

As we said before, choosing a financial planner is a big decision. Simply visiting your favourite search engine and typing in best financial planner near me isn’t necessarily going to pair you with the best match. That’s why it is so important to take the time to ask questions.

By carefully listening to the answers that a planner provides to the questions we have provided in this article, you will be well-equipped to determine if the financial planner is best for you and your needs.

Sources

Acting in the clientʼs best interests. ASIC. (n.d.-a). https://www.asic.gov.au/regulatory-resources/financial-services/giving-financial-product-advice/acting-in-the-client%CA%BCs-best-interests/ 

AFS licensees. ASIC. (n.d.-a). https://www.asic.gov.au/for-finance-professionals/afs-licensees/ 

O’Reilly, J. (2023a, May 25). What is the difference between a financial planner and an advisor?. What is the Difference Between a Financial Planner and an Advisor? https://www.northeastwealth.com.au/resources/what-is-the-difference-between-a-financial-planner-and-advisor 

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Independent vs Bank-Affiliated Financial Advisers: What Australians Should Know

Independent vs bank-affiliated financial advisers

When looking for a financial planner, many Australians find themselves deciding whether to trust a familiar bank for financial advice or to look for an adviser who operates independently. Both options are legitimate, but each comes with its own structure, strengths, and limitations.

Looking more closely at how each model works can help you decide which style of advice better aligns with your expectations, long-term plans, and the level of personal attention you want.

Independent vs Bank-Affiliated Financial Advisers: What’s the Difference?

Choosing between these two models largely comes down to how you prefer to receive advice and how much choice you want when it comes to financial products.

  • Bank-affiliated advisers work within a bank or large financial institution. Their recommendations usually come from an approved product list, giving you access to the bank’s services, systems, and support.
  • Independent advisers must meet strict legal requirements under Australian regulation. They receive no commissions, offer no links to product providers, and avoid conflicts. They can recommend products from across the market.

That said, in recent years, the number of bank-affiliated advisers in Australia has fallen sharply. Major institutions have stepped back from providing personal financial advice following regulatory reforms, including the Royal Commission and higher compliance expectations.

This shift has reduced the presence of institution-linked advisers and contributed to an overall contraction in the number of advisers. As a result, more Australians now work with boutique or non-aligned practices rather than large banks, simply because fewer bank-based advisers remain in the industry.

This context matters when comparing the two models, as availability and accessibility have changed significantly over time.

A note on what “independent” really means

In Australia, being “independent” is not just a marketing term, it’s a formal legal classification for a financial planner. Under rules set by the Australian Securities and Investments Commission, an adviser can only describe themselves as independent if they:

  • don’t receive commissions, volume-based payments, or other forms of product-linked remuneration
  • are not influenced by product providers or ownership structures.

It’s also important to understand that not all non-bank advisers are legally independent. Some privately owned advisers may still operate under licensees or structures that restrict product choice. Independence is therefore about how advice is delivered, not just who owns the business.

In addition, in Australia, all licensed financial advisers, whether independent or bank-affiliated, must meet strict education, ethical, and best-interest obligations under national regulations.

Independent financial adviser

Independent Financial Advisers

Many Australians look to independent advisers when they want guidance that isn’t shaped by a bank’s product list or internal priorities. Because independence is tightly defined in Australia, the advice you receive must come without outside influence.

Advantages of an Independent Financial Planner

Here are some of the benefits you can anticipate when working with an independent financial adviser in Australia.

  • Wider product range: Instead of being limited to a single bank’s products, independent advisers can recommend whatever they believe suits you. If a better super fund or insurance option exists outside the bank, they can put it on the table.
  • Fee transparency: Independent advisers charge fees directly instead of relying on commissions. This often provides clients with a clear picture of the costs associated with working with a financial adviser.
  • Fewer conflicts: Because independent advisers aren’t tied to product issuers, they aren’t pushed to recommend certain products.
  • More tailored strategies: Recommendations tend to be shaped around individual goals rather than preset packages.
  • Greater choice for complex needs: Particularly helpful for clients with layered finances or long-term planning goals.

Disadvantages of an Independent Financial Adviser

While independent advisers offer substantial benefits, there are a few points to consider before deciding whether this model suits you. Much of this relates to Australia’s strict independence rules and the structure of fee-for-service advice.

  • Limited availability: Only a small share of Australian advisers meet the legal standard for independence, so choices may be narrower in some areas.
  • Higher upfront costs: Fee-based advice can feel more expensive when getting started, especially for clients used to commission-based models.
  • Fewer bundled services: Independent firms do not offer the packaged products or integrated banking features that larger institutions provide.
  • Insurance advice may cost more: The fee-only model can make risk advice more complex or costly for some households.

The shrinking number of bank-linked advisers also means many consumers now encounter independent or non-aligned firms by default. While this expands access to impartial advice, it also reflects a structural change in the market; i.e. banks have withdrawn from advice roles due to rising compliance costs and regulatory pressure. 

This industry-wide shift has reduced the overall adviser pool, making it more challenging in some regions to find any adviser, whether independent or institution-based.

Bank affiliated financial planner

Bank-Affiliated Advisers

Bank-affiliated, or institution-linked, advisers remain a familiar choice for many Australians. Their advice is delivered within a large organisation, which shapes both the strengths and the limitations of this model.

Bank-affiliated advice may suit clients with simpler needs or those who prefer to stay within a familiar institution, but it offers less flexibility than working with an adviser who sources products across the market.

Regardless of ownership or structure, licensed financial advisers in Australia are legally required to act in their clients’ best interests. Understanding how an adviser is structured simply helps you assess how advice is delivered and where potential constraints may exist.

Advantages of Bank Affiliated Advisers

One benefit of a bank financial adviser is the institutional support structure available to these advisers. Banks offer established systems, internal research teams, and products that work neatly together. 

For clients who already use the same bank for everyday banking, superannuation, or lending, this can create a sense of continuity. In addition, these advisers can also draw on the bank’s administrative resources, which may appeal to people who want everything managed in one place.

Disadvantages of Bank Affiliated Advisers

However, the available product range is typically narrower. Recommendations usually come from a bank-approved list, meaning the options presented may not reflect the broader market. This structure can also introduce incentives that favour certain products, potentially influencing the guidance a client receives.

Which Type of Financial Planner Is Right for You?

When deciding between independent and bank-affiliated advice, it helps to step back and think about how much flexibility you want, how involved you expect your adviser to be, and how comfortable you are with different advice models.

Over the past few years, tighter regulations and higher compliance costs have changed the shape of the advice industry. As a result, there are fewer bank-linked advisers than there once were, and availability can vary depending on where you live and the type of advice you’re looking for.

Independent advice may suit you if…

You’re looking for broader, more personalised holistic financial planning rather than help with a single product or decision. Independent advisers often work best for people who want advice that looks at the full picture not just a one-off event. This covers areas such as investments, superannuation, insurance, retirement planning, and estate considerations. 

They also suit clients who value having access to a wide range of strategies rather than being limited to a small product set. 

In addition, this option tends to appeal to clients who are comfortable paying clear, upfront fees and prefer advice that isn’t influenced by product providers, particularly when goals are complex or long-term.

Bank-affiliated advice may suit you if…

You prefer working with a familiar institution you already use for banking or lending, and you value the convenience of having multiple financial services under one roof. Some clients appreciate this simpler approach, especially when their needs are relatively straightforward or closely linked to their existing accounts. 

That said, bank-affiliated advisers are now less common than they were in the past, which can affect availability, particularly outside major cities.

In practice, the right choice often comes down to how complex your situation is and how much flexibility you want as your circumstances change.

Is It Worth Paying for a Financial Planner in Australia?

Deciding whether or not to pay for a financial adviser is a personal decision. That said, for many Australians, it’s not necessarily the cost itself that’s the major factor in deciding whether to seek help, but how much the cost actually is. 

While, at first glance, fees can seem high, many people find the value worthwhile. This is especially true when dealing with superannuation, retirement planning, complex investments, or life changes that carry long-term financial consequences.

A good wealth management adviser can help you avoid costly missteps, create structure around your goals, and provide guidance when decisions feel overwhelming. For this reason, many people decide that working with a financial adviser is well worth the costs. 

Final Thoughts on Independent vs Bank-Affiliated Financial Advisers

As far as choosing between an independent financial planner or a bank-affiliated adviser, there is no universally “better” option. It’s really what is more appropriate for your goals, preferences, and expectations around advice, product choice, and transparency.

Understanding how each type operates puts you in a stronger position to choose the style of advice that fits your situation and future plans.

Sources:

Australia faces a shrinking pool of financial advisers, with no quick recovery in sight. Rainmaker Information. (2024, October 16). https://www.rainmaker.com.au/media-release/australia-faces-shrinking-pool-of-financial-advisers 

Choosing a financial adviser. Moneysmart.gov.au. (n.d.-a). https://moneysmart.gov.au/financial-advice/choosing-a-financial-adviser 

Financial advice costs. Moneysmart.gov.au. (n.d.-c). https://moneysmart.gov.au/financial-advice/financial-advice-costs 

Ford, K. (2025, October 9). FAAA says ‘drastic intervention’ needed to bolster adviser numbers – IFA. https://www.ifa.com.au/news/36315-faaa-says-drastic-intervention-needed-to-bolster-adviser-numbers 

O’Reilly, J. (2023, July 28). Is it worth paying for a financial advisor? (Australia Guide). Northeast Wealth. https://www.northeastwealth.com.au/resources/is-it-worth-paying-for-a-financial-advisor-australia-guide 

RG 175 AFS Licensing: Financial Product Advisers-conduct and Disclosure. ASIC. (2024, November 21). https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-175-afs-licensing-financial-product-advisers-conduct-and-disclosure/

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How to Choose a Trusted Financial Adviser in Australia – 2026 Checklist

How to choose a financial adviser that is trusted and qualified

We’ll cut to the chase. Yes, you can manage your finances on your own. But do you really want to leave the health of your financial future up to chance? And let’s be honest. We’re living in some tough economic times. In fact, an estimated 74% of adults aged between 18 and 34 have unmet financial advice needs, and at least 10.2 million Australian adults are planning to seek financial advice.

That’s why so many Australians are choosing to work with financial planners. In this article, we’ll explain not only how to choose a trusted financial adviser, but also how to spot red flags along the way.

If you’re new to working with an adviser, our financial planning glossary explains common terms you may come across.

Your Checklist for Choosing a Financial Adviser

It’s important to understand that not all financial advisers are the same. Some individuals may present themselves as advisers without holding the proper qualifications or credentials. In Australia, anyone providing financial advice, whether general or personal, must hold an Australian Financial Services (AFS) licence.

Before you commit, here’s a quick checklist to help you find a professional adviser you can trust.

  1. Identify what you need help with: Clarify your goals and whether you want guidance for one issue or support that continues over time.
  2. Find and compare qualified advisers: Use the Financial Adviser Register, directories, and trusted referrals to build a shortlist and compare specialties and reviews.
  3. Verify their licence, credentials, and experience: Make sure they hold an AFS licence, appear on the Financial Adviser Register, and have qualifications and experience relevant to your situation.
  4. Understand the type of advice and how they work: Ask whether they provide general or personal advice and request their Financial Services Guide (FSG) to see how they operate and what they charge.
  5. Meet, ask questions, and review fees: Use the first meeting to gauge whether they are a good fit, discuss how often they communicate, and compare their fees with other advisers you meet.
  6. Decide, stay involved, and review regularly: Once you choose an adviser, stay engaged in the process and schedule regular check-ins to keep your financial plan aligned with your goals.

These steps can help you filter out unqualified advisers and give you confidence that you’re working with someone reputable and transparent. We go into more detail on these below.

1. Identify What You Need Help With

Before choosing an adviser, take a moment to pinpoint what you actually need support with. Think about whether you’re looking for guidance on a single issue, such as sorting out your super or deciding how to invest, or whether you want advice that continues over time.

Having a clear sense of your goals helps you narrow down who is best suited to assist and ensures you’re matched with someone who understands your financial stage.

2. Find and Compare Qualified Advisers

Once you know what you need, start building a shortlist of advisers. Use the Financial Adviser Register, directories, and referrals from people you trust. Speak with friends, family, or colleagues who’ve had positive experiences with financial advisers. Personal recommendations can be a great starting point.

As you compare advisers, look at their specialty areas, experience level, and online reviews to see how they’ve helped others. Transparency and reputation matter.

This early research gives you valuable insight into who may be the right fit before you even schedule your first meeting.

Understand the Types of Advisers

It also helps to understand the different types of advisers available in Australia. Some are independent, meaning they are not influenced by product commissions, while restricted or bank-aligned advisers may be tied to certain providers. Knowing this distinction can help you narrow your list and choose someone whose approach aligns with your goals, regardless if they are bank-affiliated or independent.

Assess Experience and Specialty Areas

Also, be sure to look at an adviser’s experience and areas of focus. This helps you find someone who can best support your financial goals now and in the future.

Common specialties include:

  • Superannuation: Guidance on growing and managing your super to prepare for retirement.
  • Investments: Advice on building a diversified portfolio that suits your goals and risk tolerance.
  • Retirement planning: Strategies for creating reliable income streams once you stop working.
  • Insurance: Help choosing life, income protection, or trauma cover to protect your assets and loved ones.
  • Tax and estate planning: Coordinating advice to minimise tax and plan for how your assets will be passed on.

3. Verify Their License, Credentials, and Experience

Before sharing personal information, confirm that the adviser holds an AFS licence and appears on the Financial Adviser Register. This step protects you from unqualified operators and gives you confidence that you’re dealing with someone authorised to provide financial advice.

Look for credentials such as Certified Financial Planner CFP® and membership with the Financial Advice Association Australia (FAAA) or similar bodies, and check whether their experience aligns with your needs.

Feel free to ask any adviser that you meet with for this information. If an adviser will not freely share this information, or you can’t find it with a few quick online searches, it may be best to move on to the next adviser on your list.

How to choose a planner - check qualifications and experience

4. Understand the Type of Advice and How It Works

Before you get too far along the path, think about what it is that you really need. Do you just want some general guidance to set you on the right path? Or are you in need of more specific direction? Understanding the difference between the two types of advice will help you make a clearer decision about the kind of support that suits your situation.

When speaking with a financial planner or adviser, ask whether they provide general or personal advice and request their Financial Services Guide (FSG). This document outlines how they operate, what they charge, and any potential conflicts. Knowing this upfront helps set expectations and ensures you’re choosing the right kind of advice for your needs.

Know the Difference Between General and Personal Advice

  • General financial advice: Broad guidance that doesn’t take your personal goals, financial position, or future plans into account.
  • Personal financial advice: Tailored recommendations based on your circumstances, objectives, and best interests.

5. Have an Initial Consultation, Ask Questions, and Review Fees

Your first meeting is the ideal time to see whether the adviser’s approach suits you. Ask how they communicate, how often they schedule reviews, and what tools they use to keep clients informed.

Make sure you walk away with a clear understanding of their fee structure so you can compare it with other advisers you meet. A good adviser will answer your questions openly and encourage you to take your time before deciding.

Questions to Ask a Financial Adviser

You want an adviser who focuses on quality over quantity. This means you will want to look for someone who manages their client load to provide individual attention, thoughtful planning, and regular communication. Advisers who spread themselves too thin may not have the time to track your progress, update strategies, or anticipate changes in your circumstances.

Use the meeting to ask a few key questions to make sure your needs will be met:

  • Are you licensed under ASIC, and can I view your registration?
  • What types of clients do you usually work with?
  • Do you act in my best interests at all times?
  • How often will we meet or review my plan?
  • What digital tools or reports do you provide?
  • How do you charge for your services?
  • Are they proactive in adjusting your strategy when life or the market changes?
  • Do they tailor advice to your personal goals rather than relying on templates?

The right adviser should answer these questions clearly and confidently, and encourage you to ask more.

Ask About Transparency and Fees

When asking an adviser how they charge for their services, it helps to know what typical fees look like. In 2025, the median annual advice fee in Australia is around $4,668. More tailored plans, especially for clients approaching retirement or managing self-managed super funds, can range between $7,000 and $10,000.

Common fees you may come across include:

  • Statement of Advice (SOA) fee: A one-off charge for preparing your personalised plan.
  • Implementation fee: Covers setup tasks such as opening accounts or purchasing investments.
  • Ongoing advice fee: A monthly or annual cost for continued support and reviews.
  • Review fee: A one-time charge when updating your plan to reflect new goals.
  • Hourly rate or fee for service: Fixed fees for one-off questions or specific tasks.
  • Asset-based fee: A percentage of your portfolio value, charged regardless of investment performance.

When comparing advisers, ask for a clear breakdown of all fees in writing so you can understand exactly what you’re paying for and what’s included in each service.

6. Decide, Stay Involved, and Review Regularly

Once you’ve chosen an adviser, your involvement doesn’t stop there. Stay engaged in the process by asking questions, reviewing updates, and booking regular check-ins to keep your financial plan aligned with your goals.

Life changes, and your strategy should change with it. Working collaboratively with your adviser helps you stay on track long-term and makes the entire experience more productive and transparent.

Consider Technology and Accessibility

Your time is important to you. And the best financial advisers in Australia understand that. For that very reason, many advisers now offer virtual consultations, secure online portals, and digital tools to make communication and progress tracking easier.

How to choose an advisor - online consultation with financial planner

Red Flags to Watch Out For

Before you make a final decision, keep an eye out for behaviours that signal an adviser may not be acting in your best interests. Here are a few signs to take seriously:

  • Promises of guaranteed returns
  • No licence details or reluctance to provide them
  • Pressure to buy specific products
  • High-pressure sales tactics or rushed decisions
  • Unwillingness to provide an FSG
  • Vague or unclear fee explanations
  • Poor or inconsistent online reviews
  • Unsolicited calls, emails, or messages offering financial advice

Spotting these early can help you avoid costly mistakes and move on to a more reliable adviser.

Take Your Next Step Toward Confident Financial Planning

Financial advice should always feel transparent, goal-driven, and collaborative. The relationships you form should be built on trust and open communication between you and your adviser. When you understand the process and the fees involved, you can make confident, informed decisions that support your long-term goals.

Sources:

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Financial Advice in Australia: What It Is, How It Works, and Where to Start

What is financial advice in Australia, financial planners showing financial charts

Every day, Australians make choices about money without giving them much thought. We decide what we need to buy, what we can pass on for now, and how we’re going to manage our week ahead. And those small decisions rarely make an impact on our longer-term outlook. That said, bigger moments certainly can.

When facing major decisions like buying a home, choosing a car, planning holidays, preparing for retirement, or deciding how to invest, many people start asking what is financial advice and whether they should seek it. And, carrying the weight of those choices on your own can feel overwhelming, which is why so many people turn to financial advice.

The right guidance helps you approach these milestones with clarity and confidence rather than guesswork.

What Is Financial Advice? What it Actually Means

But just what is financial advice, and who should you seek it from? Simply stated, financial advice is guidance that helps you make informed choices about your money. This might mean learning how to create a family budget or putting together a longer term plan to make sure you are well prepared for your golden years.

In Australia, financial advice comes in two main types.

  • General advice: This advice provides you with broad guidance but doesn’t get into your personal situation.
  • Personal advice: This type of advice is based on your specific goals, needs, and financial circumstances. But this type of advice shouldn’t come from someone who doesn’t have the appropriate credentials to provide it. This type of advice must be provided by someone authorised under an Australian Financial Services (AFS) licence.

Financial advice can help you with investing, budgeting, superannuation, insurance decisions, retirement planning, and other major financial choices you may face over time.

Why Australians Seek Financial Advice

Earlier, we mentioned the big financial decisions many of us face. These choices can feel overwhelming. How much should you spend on a house? How big of a car payment can you afford? Are you putting enough money aside for your retirement? That’s where professional guidance becomes valuable.

Financial advice can help you:

  • Understand your money better
  • Avoid decisions that may lead to costly setbacks
  • Map out long-term plans with clarity
  • Make choices that support building and preserving wealth

Beyond the practical support, many people seek advice instead of DIY investing for the peace of mind that comes from having a knowledgeable partner guiding their decisions.

Where to Seek Financial Advice in Australia

It’s common to chat with colleagues, friends, or family when you’re unsure about money matters, but those conversations only go so far. Their suggestions may be well-meaning, yet they’re not tailored to your situation.

When you’re making choices that shape your long-term future, it helps to speak with someone who is trained, regulated, and required to act in your best interests. That’s where professional financial advice comes in.

The Role of Licensed Financial Advisers

Licensed financial advisers operate under an Australian Financial Services (AFS) licence or act as authorised representatives of a licence holder. This licensing framework sets the rules for what advice they can give and how they must conduct themselves.

A licensed adviser is best positioned to give you personal financial advice that reflects your goals, financial position, and future needs. This advice isn’t intended for the masses. It’s intended for you, and it can help with investment decisions, superannuation questions, retirement strategies, insurance options, and broader money matters.

The Financial Advisers Register

The Financial Advisers Register is a publicly available tool managed by ASIC. It offers a clear snapshot of an adviser’s background so you can make an informed choice. You can check:

  • Qualifications
  • Authorisations
  • Training and experience
  • Employment history
  • Any disciplinary action or banning orders

Reviewing the Register is one of the easiest ways to confirm an adviser is authorised to provide personal financial advice and meets Australian regulatory standards.

The Financial Services Guide (FSG)

Every licensed adviser must provide a Financial Services Guide, or FSG. This document outlines the fees you may be charged, the services they offer, and any commissions or benefits they receive. It also explains how they handle complaints if something goes wrong.

You can usually find the FSG on the adviser’s website or request a copy directly. Reading it helps you understand how the adviser operates before you move forward.

Preparing to Meet with a Financial Adviser

Before you sit down with a financial adviser, it helps to be clear about what you want from the conversation. A little preparation goes a long way. Ask yourself:

  • What goal do I want help with?
  • Do I need a one-off consultation or ongoing support?
  • Am I looking for guidance on investing, budgeting, retirement planning, or something else?
  • How much control do I want over my accounts?
  • Does the adviser’s communication style match what I’m comfortable with?

Thinking through these points early makes it easier to choose someone who understands your needs and can offer suitable guidance.

Financial advice - prepare to meet with an advisor

How to Get the Right Financial Advice

Once you’ve clarified your goals, the next step is making sure the advice you receive is trustworthy, unbiased, and right for your circumstances.

Start by choosing an adviser who holds an Australian Financial Services (AFS) licence or is an authorised representative. Check their standing and qualifications on the Financial Advisers Register to confirm they’re permitted to give personal financial advice.

As mentioned earlier, be sure to seek out a copy of their Financial Services Guide (FSG). This document outlines:

  • Fees and charges
  • Services they provide
  • Any commissions or benefits they receive
  • How they handle complaints

It’s also helpful to compare fees across different advisers to understand value for money. Make sure you’re comfortable with how much access they will have to your investment accounts and how their involvement fits with the level of control you want. And if something isn’t working for you, raise it early. Remember, open communication helps you get the support you need.

What to Do if You’re Unhappy with the Financial Advice You Receive

You always have a say in how your money is managed, and there may be times when you don’t agree with the guidance you’ve been given. If that happens, it’s important to address the issue. If you fail to address the issue promptly, it can put you in a worse financial situation down the road.

Start by raising your concerns directly with your adviser. Many problems can be resolved through an open discussion. If the issue continues, you can follow these complaint pathways:

Keep records of all emails, notes, statements, and conversations. These documents can help support your case if the issue needs to be reviewed by a third party.

Taking the Next Step Toward Confident Financial Decisions

This guide has outlined what financial advice is, how it works in Australia, and the steps you can take to get started. Whether you’re planning for retirement, managing investments, or simply wanting clearer direction with your money, the right adviser can help set you on a clear path.

By understanding your goals, checking qualifications, reviewing the Financial Services Guide, and asking the right questions, you’ll be well placed to choose support that truly fits your needs.

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Australia’s Financial Advisers Register – How to Check Qualifications & Licences

Financial adviser register check qualifications

When choosing someone to help manage your finances, it’s important to know you’re working with a licensed professional. The Financial Advisers Register, managed by the Australian Securities and Investments Commission (ASIC), is a free online database that allows you to confirm whether a financial adviser is properly authorised to provide personal advice on financial products in Australia.

You can search the register by name, adviser number, business name, or Australian Business Number (ABN). The results show helpful details that you can use when determining the best financial adviser for your needs. This public register helps you make informed choices and verify that your adviser meets the standards required under Australian law.

If you’re unfamiliar with some of the terms used in this guide, please refer to our financial planning glossary.

Go to the Financial Advisers Register

What You Should Know About the Financial Advisers Register

Before you engage a financial adviser, it’s important to understand what the Financial Advisers Register actually is and how it’s maintained. This official database is designed to give consumers an accurate picture of who they’re working with, including their professional background, licensing status, and any disciplinary history. The register exists to protect consumers and uphold the integrity of the financial advice industry across Australia.

Managed by ASIC for Consumer Protection

As mentioned, the ASIC manages and maintains the Financial Advisers Register as part of its broader responsibility for regulating financial services in Australia. This register lists individuals who are authorised to provide personal financial advice on relevant financial products, making sure that only qualified, licensed professionals appear.

ASIC’s oversight provides a transparent and trustworthy system for consumers to verify an adviser’s credentials and track their compliance with industry standards. Under Australian law, maintaining accurate, up-to-date information on the register is a non-negotiable to protect consumers from unlicensed or unqualified advisers.

Information You’ll Find in the Register

The Financial Advisers Register contains a detailed snapshot of each authorised adviser’s professional background. Each listing includes the adviser’s name, registration number, and ABN, along with their current and previous Australian Financial Services (AFS) licensees.

You’ll also see information about their qualifications, training, and professional memberships, giving insight into their expertise. The register records employment history, authorised financial products, and notes any disciplinary actions or banning orders issued by ASIC.

Together, these details help consumers assess an adviser’s experience and legitimacy before making financial decisions.

How to Access and Use the Financial Advisers Register

So, just how do you use the register to check for qualifications and licenses? The process is simple and can be completed in just a few minutes. Whether you’re researching someone you’ve been referred to or comparing professionals before choosing a financial adviser, the Financial Advisers Register gives you direct access to verified data from ASIC.

It’s an easy way to confirm that your adviser is properly authorised and has the right experience to provide personal financial advice.

Simple Search Options

The Financial Advisers Register allows users to search using several identifiers, depending on what information they have available. You can look up an adviser by:

  • Full name
  • Australian Business Number (ABN): The ABN is a unique 11-digit identifier issued to businesses operating in Australia
  • Adviser number: An adviser number is a distinct code assigned to each licensed financial adviser or the financial services licensee they operate under, helping identify who is officially authorised to provide advice.
  • Business name

Each search returns results that link directly to ASIC’s website, where you can view official, up-to-date details about the adviser’s credentials, employment, and licensing status. This direct access to verified records ensures the information you rely on is both accurate and current.

Step-by-Step Guide

We’ve created some simple steps that you can follow to confirm an adviser’s legitimacy before moving forward.

  1. Visit the Financial Advisers Register on the ASIC website.
  2. Enter the adviser’s name, adviser number, or ABN.
  3. Review the results for licensing status, employment details, and qualifications.
  4. Check the adviser’s authorisations and note any disciplinary actions listed.
  5. Use this information to confirm their credentials and reputation before choosing a financial adviser to work with.

This process can help you be assured that your adviser is officially registered and compliant with Australian financial services regulations.

Go to the Financial Advisers Register

AFS Licensees and Their Responsibilities

Behind every licensed financial adviser is an Australian Financial Services (AFS) licensee. This is the entity responsible for authorising, supervising, and reporting on their activities. Understanding the duties of these licensees helps explain how adviser information stays accurate and how consumer protections are upheld under Australia’s financial regulations.

What Is an AFS Licensee?

An Australian Financial Services (AFS) licensee is an individual or organisation authorised by the Australian Securities and Investments Commission (ASIC) to provide financial services or to appoint financial advisers to act on their behalf. AFS licensees play a central role in maintaining trust across the industry.

They oversee their advisers’ conduct, verify that advice is delivered within the boundaries of the law, and make sure their representatives hold the required training and qualifications. In short, they are the gatekeepers who link professional accountability with consumer protection.

Maintaining the Register

AFS licensees are responsible for registering their relevant providers, including financial advisers and time-share advisers, with ASIC. They must also update the Financial Advisers Register whenever details change, such as authorisations, employment history, or qualifications, to keep the database accurate and reliable.

Importantly, provisional relevant providers cannot be registered until they meet ASIC’s requirements for full authorisation. If an AFS licensee fails to maintain these records or breaches reporting obligations, ASIC can impose penalties, restrict their licence, or suspend their authorisations. This ongoing responsibility prioritizes that the register remains a trustworthy resource for both consumers and professionals.

Why the Financial Advisers Register Matters

The Financial Advisers Register is a safeguard for Australians seeking trustworthy financial advice. By checking the register, consumers can confirm that their adviser is qualified, authorised, and accountable under Australian law. It helps protect against unlicensed operators and provides visibility into an adviser’s training, background, and conduct history.

For the financial advice industry, it reinforces professional standards and builds confidence between advisers and clients. Whether you’re verifying credentials before your first consultation or reviewing your adviser’s ongoing status, the register remains one of the most reliable tools for making informed financial decisions.

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Everything You Should Know About Inflation

What is inflation: Everything You Should Know About Inflation in Australia

Inflation is the reason why $100 at the checkout today gets us a lot less than it did 10 years ago. Likewise, it’s how we know that our 100-buck shopping bag will be even smaller and lighter 10 years down the track. Our money gets less valuable over time, by economic design – and this is inflation.

Inflation is one of the most important financial concepts to understand, yet it can also feel like one of the trickiest. There are many powers at bay when it comes to inflation, and if the waters of the economic sea weren’t murky enough already with these powers, the endless, sometimes contradictory or untrue, commentary on inflation is sure to do the trick. You hear about it on the news, see it justifying rising supermarket prices and feel it when your budget suddenly doesn’t stretch as far as it used to. But what exactly is inflation, how does it affect your finances, and what can you do about it?

At Best Financial Planners, we believe the more you know, the better prepared you’ll be to make smart financial choices. So let’s break inflation down clearly, what it is, why it happens and how you can manage its impact on your daily life and long-term goals.

What is inflation in simple terms?

At its simplest, inflation is the rate at which the prices of goods and services rise over time. When inflation goes up, the same amount of money buys you less than it used to.

Let’s think about groceries again: a basket that cost $100 a few years ago may cost $110 or more today. Over the decades, the difference becomes even more dramatic. This erosion of purchasing power is the real “invisible thief” that inflation represents, and suddenly the amount you need to earn to live comfortably increases.

What is underlying inflation?

Underlying inflation is a measure designed to strip out temporary price swings that don’t reflect long-term trends. For example, sudden changes in petrol or fresh fruit prices can cause headline inflation to spike or drop, but these shifts often reverse quickly. Underlying inflation smooths out these short-term fluctuations, giving a clearer picture of persistent price pressures in the economy. In Australia, the Reserve Bank closely monitors measures of underlying inflation when deciding on interest rates, since it provides a more reliable guide to the true trajectory of prices.

How much will $20,000 be worth in 30 years of inflation?

The future value of money depends heavily on the rate of inflation. For example, if inflation averages 3% per year, $20,000 today would have the same buying power as about $8,239.74 in 30 years.

But while we know inflation will mean our money is worth less in the future, the variations in the inflation rate mean we don’t always know by how much. At a higher inflation rate, the erosion of value is even steeper – at 5% inflation, that same $20,000 would shrink in real terms to roughly $4,627.55.

These examples show why long-term financial planning is so important: without investments or growth strategies, savings left sitting idle will lose significant value over time. A financial planner in Sydney, for instance, can help you build an investment approach tailored to the city’s higher living costs and property market trends.

Inflation and rising prices

What causes inflation?

At its heart, inflation is caused when demand outpaces supply or when the costs of producing goods and services increase. In practice, it usually results from a mix of both. For example, if consumer confidence is high and households spend freely, businesses may struggle to keep up with demand, lifting prices. At the same time, if input costs like wages, electricity or raw materials go up, businesses raise prices to protect margins. This happened during COVID-19 when supply chains were totally disrupted – businesses struggled with meeting demand, and inflation accelerated.

However, governments and central banks also influence inflation through policy decisions on money supply and interest rates. So, inflation is both global and local. In areas like Perth where the mining and resources sectors drive higher household incomes, speaking to a financial planner in Perth can help you understand how local market conditions may influence inflation’s impact on your lifestyle.

What is causing inflation in Australia?

Inflation in Australia doesn’t come from a single source. It’s the result of both global and local pressures. Recently, three main forces have been at play. First, international events like supply chain disruptions and rising oil prices have pushed up the cost of goods. Second, strong domestic demand, boosted by government stimulus, low interest rates and household savings, has meant Australians have had more money to spend, putting upward pressure on prices. Finally, local factors like labour shortages and increased housing demand have made certain sectors more expensive. Together, these forces explain why Australians have faced steeper grocery bills, higher rents and pricier fuel.

While these are national forces, the way inflation is felt can vary by state and city, too. Financial planners in Brisbane might focus more on the cost of housing, mining and agriculture linked to Queensland’s economy, while financial advisors in Melbourne may highlight the impact of population growth and demand on rents and mortgages.

The link between interest rates and inflation

Interest rates and inflation move in a delicate dance:

  • When interest rates are high, borrowing is harder, demand cools down and inflation slows.
  • When interest rates are lower, borrowing becomes easier, demand grows and inflation can rise

For households, this means inflation can affect your mortgage repayments, car financing affordability and even credit card debt, adding to your total loan balance to account for the loss in value.

What are the five causes of inflation?

Economists often highlight five key drivers of inflation. These are:

  1. Demand-pull inflation – when demand for goods and services outstrips supply and causes a rise in prices.
  2. Cost-push inflation – when businesses face higher costs (like wages, fuel or raw materials) and need to pass them on to consumers to sustain their offerings.
  3. Built-in inflation – when workers demand higher wages to keep up with rising costs, which then pushes businesses to raise prices further, this is called built-in inflation, and acts like a reaction to the initial inflation ripple.
  4. Monetary inflation – when too much money is circulating in the economy, often due to low interest rates or government stimulus, supply can quickly outweigh demand and cause a general increase in prices.
  5. Imported inflation – when global prices increase (for oil, energy or food) flow into the local economy through trade.

How is inflation measured in Australia?

Since inflation is an increase in the level of prices of goods and services, inflation is measured by the rate of change of those prices. Economists usually measure inflation using the Consumer Price Index (CPI), which tracks the cost of a “basket” of common household expenses like food, transport, housing and healthcare.

In Australia, the CPI is calculated by the Australian Bureau of Statistics (ABS) and published once a quarter. To calculate the CPI, the ABS collects prices for thousands of items, which are grouped into 87 categories (or expenditure classes) and 11 groups. Every quarter, the ABS calculates the price changes of each item from the previous quarter and aggregates them to work out the inflation rate for the entire CPI basket.

Who benefits most from inflation?

Inflation affects everyone differently. Borrowers with fixed-rate loans often benefit because they repay debts with money that is worth less over time. Property owners may also gain, since real estate values and rental income often rise with inflation. Businesses with strong pricing power – like supermarkets or utilities – can pass higher costs on to customers, protecting profits.

On the investment side, those holding assets like shares, real estate or commodities can often stay ahead of inflation. In contrast, savers with cash in the bank and people on fixed incomes tend to lose the most, as their money steadily buys less. For instance, if you’re looking at how much you need to retire today, that number may have to be higher to account for a lower purchasing power when that time comes – unless it’s protected in investments.

How do you beat inflation?

Inflation is often spoken about in terms of our groceries or goods and services, but our whole financial portfolio is affected. For those saving for a house deposit, inflation can mean the power of your bank account shrinks in time without the right strategies. While you can’t stop inflation, you can reduce its impact on your finances, and the key is to make your money grow faster than prices rise.

On a day-to-day level, smart budgeting and cost control help protect your household cash flow, while regularly reviewing your mortgage, insurance and utility bills ensures you’re not overpaying. Finally, choosing a financial planner for long-term planning can help align your savings, superannuation and investments with strategies designed to outpace inflation.

How inflation affects investments and how to protect your money against inflation

Investing is one of the most effective strategies and assets like shares, property and inflation-linked bonds often keep pace with or outstrip inflation. Building a diversified portfolio spreads your risk and strengthens resilience – here are some foundational investments:

  • Bonds – traditional fixed-rate bonds often struggle when inflation rises, because their payments lose real value. However, Treasury Inflation-rotected Securities (TIPS) and similar products in Australia adjust with inflation.
  • Shares – companies with strong pricing power (like utilities or consumer staples) can pass higher costs to customers, protecting profits.
  • Real assets – commodities, real estate and infrastructure often hold up well in inflationary times.
  • High-yield interest savings accounts – these bank accounts pay you a high sum of money for storing your money, and the passive income from these accounts can offset the inflationary shrinkage of your money.

The bottom line

Inflation is unavoidable. But it doesn’t have to derail your financial future. Understanding what drives it, how it affects your daily life, and the strategies to manage it will put you ahead of the curve.

At Best Financial Planners, we specialise in helping Australians prepare for uncertainty, including the challenges inflation brings. Whether you’re saving for retirement, managing a mortgage, or building a diversified portfolio, our team can guide you toward smart decisions that keep your money working for you.

Talk to us today to learn how we can help you build financial resilience and protect your wealth, no matter what the inflation rates do next.

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Can Debt Consolidation Help You Pay off Your Loans Faster?

Debt Consolidation in Australia to Pay off Loans

The ABS’s most recent findings report a household debt growth of 7.3%, while disposable income is only growing at a rate of around half of the debt growth, at 3.7%. As a collective, if we didn’t feel the pressure from our debt 10 years ago, it’s hard not to feel it today – even if debt is a necessity for many of our life ventures, from surviving financially as a single mother, needing a car for work or to get your family into your own home.

We know that growing our income and funneling more money into paying our debts off faster is a surefire approach to optimising our finances, but we can’t just desire our way into more cash flow or gain instant passive income streams. However, there are alternatives to finding debt relief.

Debt consolidation – rolling multiple debts into a single facility – can be a smart way to simplify your repayments, reduce interest and help you pay less for your loans over their lifespan. Having your debt in one place also helps with mental clarity and organisation, but it isn’t a silver bullet. So, what is debt consolidation, and can it help you pay off your loans faster?

Best Financial Planners are dedicated to helping Australians build wealth and live financially free, no matter what their current circumstances look like. Our team has considered the most pressing questions to ask financial planners. In response, we’ve created this guide to explain how consolidation works in Australia, when it can speed up your payoff timeline, how you can use debt consolidation to optimise your finances and the traps to avoid.

What’s involved in debt consolidation?

Debt consolidation just means replacing multiple debts with one loan. So you can combine your credit cards, Buy Now Pay Later, personal loans and even ATO debt into one facility that will hold all or most of your debt. It’s a type of refinancing you can do in a couple of ways. First, you can consolidate debt through an unsecured personal loan, which is used to pay out higher-rate debts. These often come with a fixed rate or are over a fixed term.

Secondly, debt consolidation can be done through a credit card balance transfer. These often come with a low or 0% promotional rate for a set period, so you can make use of a low-interest rate period to pay your principal loan off faster.

If you have a mortgage, another debt consolidation option is a mortgage refinance or top-up that absorbs other debts into your home loan. Your mortgage loan balance will increase, but overall, you could be better off with a higher mortgage at a lower interest rate than your previous loans. All of these options have different costs and typical interest rates and will depend on your current financial situation and loan portfolio.

When consolidation can help you get out of debt faster

Debt consolidation loans can accelerate your payoff, but only if they meaningfully lower your effective interest rate. Consolidation can also help you pay off your debt faster if it shortens your repayment term. And if it does both, and if you make (and keep) a plan to avoid re-borrowing, you’ll be well on your way to a debt-free life and start proactively planning for retirement. We know we’re still speaking in financial lingo, so here is a breakdown of what to look for without the bells and whistles.

Lower rate, same or shorter term

Some loans are designed for high-interest, like credit card debt. Identify if you have any high-rate loans, as these will be key loans to consolidate into a lower-rate instalment loan with a comparable or shorter term, which can reduce interest and push more of each payment toward principal.

Look for promos with 0% balance transfer

Transferring your loan balance to a new lender can dramatically cut your loan interest for the first period, often between 6 to 24 months. If you can manage to pay the transferred balance off before the promo ends and avoid spending on the new card, you can reach debt-free sooner. If you only make minimum repayments, though, and add purchases onto the new loan, the benefit can weaken fast and may not be worth it anymore.

A single fixed repayment builds momentum

Many people find it easier to budget around one fixed repayment. If this is you, consolidating your debt may be a good option simply for the clarity in payments it can offer. You’ll find it easier to avoid missed payments and late fees and improve repayment history reporting over time. Once you get into a routine with budgeting for one repayment a month, you’ll build momentum and may manage to save for a house deposit or any other financial goals.
Lower interest rates on consolidated debt

When consolidation won’t help you pay off debt faster

On the other side of the coin are circumstances where you’re not helping yourself pay off your debt faster, just repackaging the problem. Ultimately, to escape getting stuck in a cycle, choosing a financial advisor fluent in loans will help you consolidate debt in a way that truly serves you. Here are some of the things we look to avoid in debt consolidation:

A longer term that hides a higher total cost

While loans should absolutely be serviceable, be careful of stretching a short-term debt over many years. These shrink the monthly bill but increase the total interest paid, delaying your debt-free date.

Securing previously unsecured debts against your home

If you refinance a car loan, credit card or personal loan balance into your mortgage, your home becomes a liability, and you may put your home at risk if you can’t keep up. This is another reason to tread carefully and maintain a payoff plan that is designed to reduce the consolidated portion quickly.

The other side of balance transfers

Promotional rates end, sadly. As the attractive rate that pulled you in can become the opposite of attractive. So if you still owe a balance when the intro period expires, or if you add new purchases that accrue interest immediately, the debt can end up lingering longer and at a higher rate than you started with, keeping you stuck in the cycle.

Not addressing spending

Consolidation frees up credit lines. This is fundamentally a good thing, but if you keep using them, you can end up with more debt than before (the consolidated debt plus the newly accrued debt). Paying off your debt and living financially free is as much of a mindset shift as a logistical one, so do what you need to do in order to drop unnecessary spending. For example, if you need to take out an unsecured loan to finance a pool, it’s worth taking a moment to think about whether this is in your best interest long-term.

Debt consolidation – smaller than the sum of its parts

Typically, when we talk about things joining forces, they become more powerful. But with debt, you’re battling varying lenders’ requirements, deadlines, rate changes and the mental battleground of multiple debts. Debt consolidation allows you to have one single debt, from one lender, within one repayment system.

But the true power of debt consolidation lies in finding and acquiring the refinancing option that will offer you the lowest interest rate and a reasonable term. When this happens, all of your debt is calculated against the best rate, and you’re in a much better position to pay off what you owe faster.

The process materialises through balance transfers, mortgage top-ups or personal loan refinancing. Remember, mortgage-based consolidation calls for extra caution to prevent a cheap rate from becoming expensive over decades and risking your home itself. Finally, eliminating your unnecessary spending (if it requires you to borrow) is the final piece to becoming free from debt. Done right, consolidation turns a messy pile of debts into a straight line, helping you cut off the ball and chain of debt much quicker. But done poorly, it just repackages the problem to another lender.

For any questions about debt consolidation or your refinancing options, contact us today to speak with a trusted financial advisor.

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Aged Care Financial Planning: Merging Your Current & Future Needs

Managing aged care financial planning

Planning our finances – i.e. channelling your funds into areas of your life in a way that feels supportive for each need and phase – while we’re in the thick of our careers, often revolves around our immediate goals. Food, entertainment, living expenses, kids’ expenses, bills, holidays – the list goes on. What’s hard to work into our budgets is saving for our loved one’s care or our own future when we’ll no longer have employment income, because it’s not at the front of our minds.

Aged care can be an expensive journey. The cost and complexity of using these services when we, or people we love, enter this time of their lives makes early aged care financial planning not just smart, but necessary. At Best Financial Planners, we’re dedicated to providing forward-thinking financial strategies that optimise your investments and budget allocations, and give you more back. Our recommended aged care financial planners are dedicated to identifying all the ways in which they can optimise your finances and protect your wealth today, requiring little budget adjustments in order to have the aged care you deserve.

In this guide, we explore how to create a flexible, forward-thinking financial plan that adapts with life’s changes and ensures the care you or your loved ones deserve.

Why aged care financial planning matters

As we live longer, the need for high-quality aged care continues to grow. This typically means we have more years to support ourselves after we retire. This is all well and good when we think about superannuation and retirement, but aged care is a whole other kettle of fish, with high costs that are often too large to stretch out of our superannuation income.

Without a proper plan, families often find themselves making rushed, emotional decisions under pressure. Unexpected costs, confusion about government entitlements and limited accommodation options can create financial and emotional stress. Or maybe you have current financial stressors like preparing for a divorce or working a job that doesn’t offer superannuation. Aged care financial planning helps avoid these pitfalls by providing clarity, structure and confidence today around one of life’s biggest transitions.

How to approach aged care planning

For most of us, financial planning tends to be segmented. There’s saving for a home, investing for retirement, budgeting for education or travel. But when it comes to aged care financial planning, taking a step to look at the bigger picture can really help us to iron out our priorities. When the time comes when we need supportive aged care, the ship has sailed when it comes to the idea of saving for it. Instead, integrating it into your budget throughout your career and life stages will mean you’re setting yourself up with a decent nest egg for your aged care, without sacrificing too much at any stage.

But when we’ve already got an airtight budget, how do we go about incorporating this into our budgets? Well, let’s not think of it as something we have to save for in the future, but rather, we’re just setting our vision a little broader, and balancing our current and future needs.

Future aged care financial planning

Merging your current and future needs

You don’t need to sacrifice your current lifestyle to prepare for aged care, but you do need to make informed decisions now that will leave room for flexibility later. That might mean:

  • Segmenting a small portion for retirement – your superannuation is a fantastic boost of income when you stop working, but it’s really only designed to support a self-sufficient lifestyle. Aged care should be seen as an additional cost that needs to be funded separately. Any little bit of your monthly budget you can put towards aged care today is very helpful, contributing significantly to your aged care needs.
  • Creating liquidity in your investment portfolio – liquidating your investments, like holding onto stocks, can help you access funds to cover unexpected aged care costs. This could also look at buying an investment property if possible, to give you long-term passive income.
  • Paying down debt strategically – working on reducing your current debt strategically can mean more money in your pocket over the course of your life. It’ll help you enter so that you’re in a stronger financial position earlier, which you can begin setting up the later stages of your life earlier.
  • Maximising government benefits and tax efficiencies through timely asset structuring – remember every dollar counts when it comes to investing in your future, so doing what you can today, like maximising tax benefits in your tax return to help optimise your finances, is always beneficial.
  • Considering lifestyle choices – while you don’t need to make sacrifices in your adult years that limit your quality of life, by considering your current lifestyle choices now that align with longer-term savings, you’ll make a big impact on your aged care financial planning. We’re not even talking about huge changes, just subtle considerations like avoiding luxury holidays or purchases, minimising your subscriptions or holding onto your perfectly fine car for longer than you otherwise would. These savvy financial choices will give you more room in your monthly budget for your future.

The role of financial advisors in aged care planning

Fitting the requirements of life’s later stages into your budget and financial planning is not a simple task. For many of us, we have bucket lists to tick off, dependents to support and retirement plan dreams on top of everyday financial pressures to manage before we begin thinking about aged care.

Thai is when expert financial advisors are invaluable by helping structure your assets to minimise fees, identifying appropriate funding strategies and clearly explaining how your decisions may impact pension entitlements or government benefits. Often, you may not need to make any big budgetary sacrifices, because they can help find avenues to optimise your current situation in a way that pays the dividends towards proactive retirement planning.

They can also assist with complex applications through Centrelink or the Department of Veterans’ Affairs, ensuring you access all available support. Additionally, they play a crucial role in creating estate plans that account for current needs while accommodating the future costs of aged care.

Successful aged care financial planning breaks down your unique circumstances and involves a balance between current needs and future goals. Here are the primary elements to consider:

1. Asset and income assessment

Well, start by taking stock of your current financial situation:

  • Superannuation balances
  • Real estate and property value
  • Savings and investments
  • Pension entitlements
  • Liabilities and debt

As well as helping to plan your aged care funding strategy, a clear understanding of your financial position will help you determine eligibility for government assistance and inform your choices regarding care providers. From here, a planner can assess if you can afford to put more away for your future, like in the form of investments or voluntary super contributions.

2. Aged care options and lifestyle goals

There is no one-size-fits-all approach to aged care. Some individuals may prefer to stay at home as long as possible with in-home support, while others may opt for early entry into residential aged care for a more structured environment. Aged care planning should incorporate your preferred living arrangements, desired level of comfort and service, proximity to family, as well as planning for any unexpected difficulties. So, when an advisor considers how much we need to retire at 65, it always depends on what our expectations and preferences are for our lives during this period.

3. Understanding the means test and fees

Residential aged care in Australia involves several types of fees, including a basic daily fee, a means-tested care fee, an accommodation payment and additional service fees. These fees can significantly affect your financial plan. Knowing how they apply to you or a loved one allows you to plan in advance and avoid last-minute surprises.

A plan today means aging comfortably

With smart, steady and early preparation, you can set yourself up for aged care with options, peace of mind and dignity when the time comes. Life moves quickly, and while we can’t always predict the road ahead, we can build a roadmap that gives us confidence to navigate it.

It’s never too early to prepare your life stage financing, whether you’re in your 30s juggling mortgages or budgeting for a house deposit, or nearing retirement and thinking about what’s next, taking a moment to consider your aged care needs today can make all the difference later.

At Best Financial Planners, we’re here to help you merge your current lifestyle with your future goals in a way that feels achievable and empowering. In this guide, we’ve explained how you don’t have to sacrifice big chunks of your monthly budget to set yourself up to age comfortably. By structuring your investments, assessing your current situation, applying for additional support, and understanding your aged care preferences, you can protect your wealth early for a better future. An advisor will work with you to maximise what you have, access the right support, and build a flexible, future-ready aged care strategy that suits your life, not someone else’s. Contact the team today.

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How to Save for a House Deposit: Budgeting Tips for Buying a House

How to save for a house deposit featured image, with a for sale sign

If you’re aiming to step onto the property ladder for the first time, budgeting to upgrade to a bigger place for your growing family or investing in a long-term asset, knowing how to effectively budget and save is the foundation of your homeownership journey. It’s a skill you can take with you when it comes time to comfortably manage your mortgage repayments, too.

At Best Financial Planners, we’ve helped countless Australians with all types of financial guidance, including how to build their savings to purchase their first home or next property. Our team of expert financial advisors understand the challenges buyers face to save enough money to secure a home in the face of rising costs and stagnating wages. But we also know that with the right guidance, the dream of homeownership can become a reality sooner than you think.

In this guide, we’ll cut through the jargon and fluff and deliver real, practical advice and guidance, along with realistic examples and estimated figures – from setting a savings goal and understanding upfront costs, to managing spending habits and finding extra income opportunities. You can also choose a financial planner to analyse your financial situation and create a tailored budget, but you can get started with these smart, realistic strategies that can be applied no matter where you’re starting from.

Know how much you’ll actually need

With all the updates to first homebuyer schemes, advice from non-professionals thrown around on the internet and an intimidating market to go up against, knowing how much you’ll need for a home deposit is still clouded in ambiguity for many people.

Having a target, while being incredibly motivating for savers, also helps you understand how far away you are from your goal of buying a property. In most cases, a deposit that is 20% of the purchase price is the ideal minimum amount of money to buy a house. With a deposit of over 20%, you’ll avoid paying Lenders Mortgage Insurance (LMI), which protects the bank if you default on your loan, but offers you no benefit.

For first home buyers

There are more options for you if this is your first time buying a home. The first home guarantee is a program that involves the government acting as a guarantor of the home loan, which means no LMI is required, and you only need a 5% deposit to buy a home.

Just remember, the smaller your deposit is, the higher your total loan balance and the more interest you’ll need to pay. But on the other hand, the 5% deposit scheme may help you get into the market faster and stop paying rent sooner. Determining which is the most financially wise move is a case-by-case task, depending on the current market conditions, your personal situation and your desires. If you wish to own a home as soon as possible, don’t let this deter you from capitalising on the 5% deposit scheme; it’s designed to get you a home faster!

So, how much do you need?

Let’s break this down against some property prices:

Property price 20% Deposit 5% Deposit (for homebuyers) Likely LMI if deposit <20% for non-first homebuyers
$600,000 $120,000 $30,000 ~$8,000–$15,000
$750,000 $150,000 $37,500 ~$12,000–$25,000
$1,000,000 $200,000 $50,000 ~$18,000–$35,000

While opting for a lower deposit – say 5% as a first homebuyer or 10% for non-first homebuyers – helps you buy sooner, you’ll still need to show a history of strong savings habits to your lending bank and be prepared for extra costs. The financier will also go through your recent spending history to ensure your income minus outgoings results in enough money to service the home loan.

Don’t forget the upfront costs

In addition to your deposit, you’ll also need to budget for:

  • Building and pest inspections – you may need to purchase multiple inspections for different properties during your search
  • Stamp duty – can be tens of thousands of dollars, depending on the state and purchase price, but there are first homebuyer extensions and concessions. You can use online stamp duty calculators and check the details on your state government’s website.
  • Loan application and lender fees
  • Conveyancing and legal fees
  • Insurances for your new property and strata fees if it’s part of a body corporate
  • Moving and set-up costs

Many of the upfront costs are relative to various states and locations across Australia, the property purchase price and whether this is your first home or not. You can use an online calculator and fill in the form to avoid being blindsided by these additional expenses.

How do you save for a house deposit

Assess Your Current Financial Position

With your targets laid out, the next step is to get a clear picture of where you stand right now.

There are three primary tenets in understanding your financial position – your income, expenses and current savings, assets and liabilities. Here’s what you need to know about each to determine an extensive picture of your circumstances:

Your income

Calculate your net (after-tax) income from all sources. Your primary source of income is most likely your day job. Secondary income streams can include all different types of active andpassive income. Consider if your assets are generating any passive income for you, like bank savings interest, share dividends, digital products you sell online and money from side hustles. Are you receiving any government payment or grant and scholarship money? These can count towards your annual income.

Your expenses

Take a deep dive into your monthly outgoings. There will be fixed expenses (rent, utilities, phone, internet, insurance, etc), variable outgoings (food, fuel, subscriptions, entertainment, etc) and irregular ones (gifts, holidays, annual bills, etc). You can use one of the many digital apps or platforms to upload your bank statements, and it will categorise your expenses for you.

Your assets and liabilities

Finally, do an inventory of your assets and liabilities. For your assets, include your savings balances, superannuation, valuable possessions like your car and any shares or other investments you own. Liabilities include any credit card debt, student loans and other debt.

When these three tenets are determined accurately, you have all of your financial figures laid out clearly – and you easily see what you need to move around to reach your financial goals.

Budget for buying a house

Set a realistic & calculated savings goal

Once you know your deposit target and where you’re starting from through the steps above, turn that number into something manageable by breaking it down.

For example, to save a $40,000 deposit:

  • Over 3 years = ~$1,110/month
  • Over 2 years = ~$1,667/month
  • Over 1 years = ~$3,333/month

If that sounds daunting, remember: this is a long-term goal. What matters is consistency, and if you need to lower the numbers and extend the time to suit your income and expenses, then do that!

Step-by-step: how to save for a house deposit

Now, here comes the real work, saving for your deposit. However we find that, for some people, saving is a mind game, and when you get in the right mindset, holding back on spending on something you don’t need and using the money to invest in your future is super rewarding. Once you feel the thrill that can come from saving money, it can become more of a game. But this is only the case for your disposable income – many people don’t have much left over once all their expenses are paid. So, a tried and tested way to save is to construct realistic savings goals that ensure you can support yourself while building a deposit.

A successful savings plan hinges on your ability to balance everyday life with future goals. Here’s exactly how to save for a house deposit:

1. Start with a clean sheet

Download a budget Excel template or use an app. List out your monthly income, all fixed and variable expenses and then your minimum monthly savings commitment in the template to outline your cash flow.

2. Portion your spending

The purpose of dividing your spending opens up the door to realigning your spending with popular savings methods of categorisation. The 70/20/10 method has helped many people tighten their budgets and realise how much extra they could hold on to if they made some changes. This method requires you to use 70% for your living expenses, 20% for savings/= (building that deposit) and then 10% for lifestyle/fun.

You can play around with these proportions, depending on how fast you want to save, and if you don’t want to sacrifice too much lifestyle. Finding spending proportions that work for you is a bit of science, and it’s even one of the top financial adviser questions we get asked. But once you’ve determined percentages for each category that will accommodate your savings target, the budget for a house deposit is born.

3. Cut and reallocate costs to align with your savings method

This is where the magic happens. Most of us spend more than we realise and more than we need to on non-essentials, and a few small changes can snowball into thousands saved each year.

Once you do a spending audit, you might see that you’re actually spending 25% of your income on fun/lifestyle. Now is the time to figure out how you can reduce that percentage to your target of 10%. Here are some of our top tips to cut costs for your budget:

  • Meal prep 3 days per week to avoid takeaway.
  • Limit café coffees to weekends or a couple of times per week
  • Meet your friends at one of your houses for dinner or drinks instead of going out to a restaurant or bar.
  • Cancel subscriptions you don’t use. If you have multiple streaming subscriptions, a great way to cut costs is to rotate streaming services each month and cancel them once you move on to the next.
  • Replace music subscriptions with free or ad-supported versions.
  • Practice ‘sleeping on it’ or 24-hour rules when making purchasing decisions. This can really help you cut down on impulse buying.
  • Switch energy, utility and internet providers – comparison sites often unlock deals that save you some big bucks.
  • Assess your current living situation – can you move to a cheaper rental or get a flatmate?
  • Plan a no-spend weekend once a month – fill it with beach or hike days, library visits and cosy dinners at home.

You can find more financial hints and tips on our website. You don’t need to apply every tip someone shares with you, but if you can identify a few solid ones that are easy enough for you to implement and can help you quantify a reduction in expenses that gets you into the budget target, you’ll make fantastic progress.

Consider ways to increase your income

If your budget is already tight or you want to reach your goal faster, growing your income is the next avenue to explore. Can you ask for a pay rise at work? Do you have the capacity to take on an extra shift? What side gigs and passive income can you generate? Things like babysitting, working hospitality shifts, doing freelance services or renting out assets like your car or clothes can really help give you extra breathing space when budgeting. Also, make sure your savings are sitting in a high-yield interest account – the interest paid on your savings is passive income and can accelerate your progress.

Or maybe you’re making other sacrifices in your income for your future, like through a salary sacrifice or voluntary super contributions. While these are fantastic for financial wellbeing in your golden years and to give you enough money to retire at 65, you might want to pause them while you’re budgeting for a house deposit to give yourself more saving power.

How to save for a house deposit featured image, sold sign

The best time to start is today

Saving for a house deposit can feel a bit like rolling a boulder up a hill at times – everything feels stacked against you, especially when property prices are high and everyday expenses keep climbing. But with the right planning, budgeting and consistency, it’s absolutely achievable. By understanding exactly how much you need, assessing your financial position, setting a realistic savings goal, trimming unnecessary costs and even boosting your income, you can move from dreaming about owning a home to doing it.

Remember, it’s not about perfection or sacrificing the things that make you happy in the process. It’s better to find budgeting methods and ways to cut costs that suit you. Whether you’re saving for a 5% deposit under a first-home buyer scheme or aiming for the full 20% to minimise loan interest, every dollar counts.

If you want to sit down with the professional advisors at Best Financial Planners, we can help you not only plan a budget but also optimise your income and savings to yield the best progress towards a house deposit. Contact us to get started. Either way, the earlier you start and the more strategic you are, the faster you’ll get there. And once you reach that goal, you won’t just have a deposit – you’ll have financial discipline and momentum that will serve you well into your future as a homeowner, and even start proactive retirement planning for your golden years.

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How to Lodge Your Tax Return & What Else to Do at Tax Time

How to lodge tax return, featured image of Australian Tax Office

Tax time in Australia rolls around every year from July to October, and while it might not be your most enthusiastic date on the calendar, it is one of the most important for your financial health.

The end of the Australian financial year is June 30, with a new financial year starting on the 1st of July – but don’t stress if you’re reading this in July. While the tax year technically ends after June, this date marks the recorded period of income and outgoings, and not the date to submit your tax return.

Whether you’re an employee, freelancer, sole trader or small business owner, lodging your tax return accurately – and on time – helps you stay compliant with the ATO, avoid penalties and possibly even score a refund. But taxes and tax returns are rarely simple. Best Financial Planners is a group of expert financial advisors, helping our clients sift through the mud and confusion of all things finance, including the complexities of tax.

Our expert team has put together a guide that will cover how to lodge your tax return across a range of income types, what documents you need and extra tasks to tick off during tax season.

When do you need to lodge your tax return by?

The standard tax return period in Australia runs from 1 July to 31 October each year, which means the deadline to submit your tax return through MyGov is October 31. During this time, individuals can lodge their return for the previous financial year, covering income earned from 1 July to 30 June. So, this year your tax return will cover your income from the 1st of July 2024 to the 30th of June 2025. If this date falls on a weekend (in 2025, it’s a Friday), the deadline typically extends to the next business day.

Using a registered tax agent gives you extra time to lodge your return, often until 15 May of the following year. This is a great approach to give you more time, especially if you have a more complicated tax return to lodge, like a dual income, an income plus investments or if you’ve moved out or into the country in the financial year. But there’s one catch – you must be registered with your tax agent by 31 October to qualify for this extended deadline. If you’re late engaging an agent or you have overdue returns, your due date may be brought forward.

Who needs to lodge a tax return?

Most working Australians are required to lodge a tax return, including:

  • Employees – if you’ve had tax withheld from your wages, you need to lodge a return – even if your total income is below the tax-free threshold. If you believe you paid the correct amount of tax, you still need to lodge a tax return to have this checked
  • Sole traders and freelancers – if you’re running a business or doing contract work, you’re required to report all income and claim deductions formally through your tax return. For most people working in this capacity, their tax return is very important because their income fluctuates throughout the year
  • Investors – if you’ve earned income through shares, rent, property, crypto or dividends, you’ll need to include that in your return
  • Individuals who received government payments or Centrelink benefits – especially if tax was withheld
  • Anyone who earned above the tax-free threshold – $18,200 for most residents

If you didn’t work or earn any income, you may need to submit a non-lodgement advice to let the ATO know you’re not required to lodge.

Here’s a step-by-step guide to lodging your tax return in Australia

The amount of time and energy that will go into lodging your tax return depends on how much prep you do. If you’ve stayed organised with your documents and receipts throughout the year, the process is usually smooth and straightforward. This step-by-step guide will walk you through how to lodge your tax return, including everything you need to know to get it done right, for first-time lodgers or seasoned tax return pros alike.

How to Lodge taxes, using the online myGov system

1. Gather your documents

Once you gather everything needed, including all financial documents, it’s much more straightforward to lodge your tax return accurately. This ensures you don’t miss any income or deductions – and helps speed up the refund process. Here are the documents you need:

Income statements or PAYG summaries

Most employers now report directly to the ATO, so your income statement will likely already be available through your MyGov account. However, if you’ve had multiple jobs or income sources, double-check that everything has been reported correctly, and if it hasn’t, request and gather the documents from your employers and upload them into MyGov.

If you’re a freelancer, contractor or sole trader, this part is a little more complicated. You need to gather all of your invoices and calculate the total sum of income from your work, uploading the documents into MyGov.

Bank interest, dividends and investment income

Any income earned from savings accounts, rent, shares, managed funds or other investments needs to be declared. You should receive annual summaries from your financial institutions or investment platforms. If you haven’t received or can’t find your summaries, you can request them through the investment platform or the respective supporting agencies, like a real estate agent for rent summaries.

Receipts for business expenses & deductions

One of the more time-consuming tasks of lodging your tax return is gathering the supporting evidence for your expenses and deductions. Review the ATO’s extensive list of deductible expenses to make sure you’re claiming deductions on everything you can – this will minimise your income tax and maximise your return. There is a wide range of services and products that are included, including tax-deductible financial advisor fees. To claim deductions, you will need supporting evidence through receipts and invoices, so keeping a folder of receipts throughout the year can save you a lot of time and hassle during tax time.

Private health insurance statement

If you have private health cover, you’ll need the statement from your insurer to complete your return. It also helps determine your eligibility for the private health insurance rebate and whether you’re liable for the Medicare Levy Surcharge, which comes into effect for people aged 31 and above.

2. Choose a lodgement method

There are several ways to lodge your EOFY tax return in Australia, each comes with its own set of pros and cons and is more suitable for certain tax scenarios than others.

MyGov & ATO online portal

Ideal for individuals with simple tax landscapes, like single-stream incomes and those who held only one job throughout the financial year. The ATO’s online service, MyTax, is free and pre-fills much of your information, including income and health insurance details. You’ll need to link your MyGov account to the ATO if you haven’t already. First-time lodgers will have to do a bit of work to enter any details that aren’t automatically filled in, but seasoned lodgers will have a much smoother ride with most personal details already accurate.

Registered tax agent or accountant

If your finances are more complex – think investment properties, business income, capital gains, job switches, voluntary super contributions or you’ve returned to Australia after living overseas – a registered tax agent can help you make sense of your tax requirements. They ensure you’re compliant and may help you find deductions you’d otherwise miss. Keep in mind there’s a fee, but it’s often tax-deductible. Try to find an agent familiar with your local requirements. So, for Victorian residents, choose an accountant in Melbourne, for example.

Paper lodgement

This method is still available but is used only in limited circumstances, like for people who are not comfortable with digital platforms or have specific lodging needs. It’s slower and more prone to errors.

Method Pros Cons
MyGov / MyTax Free, fast, pre-filled with your details and easy to use. Great for people with simple lodgings. May not suit complex tax scenarios
Tax Agent Professional advice, maximises deductions and extends the deadline. Helpful for those with complex tax scenarios. Comes with a (tax-deductible) cost and must register early
Paper Lodgement Non-digital option Slow, risk of errors. Not recommended

Table 1: Summary of pros and cons of different ways to lodge tax return

3. Lodge the return

Once you’ve gathered your documents, log into your MyGov account and access the ATO services. From there, you can begin your return. Most fields will be pre-filled with data from your employer, banks and health insurer. But even though data is pre-filled, mistakes can happen and you should always check your income matches your payslips, add any missing income (side hustles, freelance gigs, etc.) and enter your deductions carefully, backed by receipts.

Some things are easier to miss than others, so here are common mistakes to avoid:

  • Forgetting to include bank interest or dividends
  • Claiming work deductions without proof
  • Overestimating home office claims without a clear calculation method (for things like bills that get split against your work hours, use the provided formulas)
  • Missing passive income or income from gig economy work (Uber, Airbnb, bank interest etc.)
Lodging taxes, picture of tax filing forms

4. Confirm submission and track your refund

Once submitted through MyGov or a tax agent, you’ll receive a confirmation from the ATO. In MyGov, your return status will show as ‘Processing’. Most electronic returns are processed within 2 weeks, but paper returns can take up to 10 weeks.

To keep track of your return:

  • Log in to MyGov and go to the ATO portal. They click ‘View my tax return’
  • Check the return’s status (e.g., In Progress, Finalised)
  • The ATO will also notify you once your Notice of Assessment is ready

What else should you do at tax time?

Lodging your EOFY tax return is the more formal part of tax time. But the season is also a valuable opportunity to get your finances in order, maximise your deductions and plan ahead for the new financial year while your financial accounts and circumstances are still fresh in your mind. Here’s what else you should consider doing at tax time:

Check up on your finances and debt

Tax time is the perfect moment to take stock of your overall financial health. We know it’s sometimes stressful to check your total loan balances, but it can really help you understand how to prioritise your budget for the best financial outcomes.

Review how you’re tracking toward goals like buying a home, paying down loans or building emergency savings. Take a look at what you earned and spent over the year and identify areas where you might cut back or reallocate funds. For example, if you find that most of your disposable income is being used for unnecessary spending, you might wish to pay off debts faster instead.

Check and consolidate your superannuation

Your super is a long-term investment, but short-term attention can help boost that investment. One of the easy wins with super if you have multiple accounts, is consolidating them to reduce fees and simplify your super. You should also check if your employer is paying the correct amount and whether your contributions have been processed correctly, which will help you with proactive retirement planning.

Plan for the year ahead

A little preparation now can make next year’s tax time a breeze, especially now that you can see your annual financial landscape so laid out. Firstly, if you don’t already, set up a system for tracking receipts and deductions – you can use apps, folders or cloud storage to organise everything throughout the year. This will help remove the headache of finding and consolidating all our dedication evidence when next year’s tax time rolls around.

Tax time: a return to your financial portfolio

If you’re a finance geek like us, tax time is a super rewarding and fulfilling time of the year to bring order to your financial life. But, we understand this isn’t the norm! However you feel about tax time, the MyGov platform really does streamline the process for us, and it only gets easier year on year, when we fill in more details that carry through to the following year. And, there is always the option to engage with a helpful tax agent to work through the complications of more complex tax scenarios. Whichever approach you take, the key is to start early, stay organised and take the time to understand what you can claim.

But remember: tax time isn’t just about submitting forms. It’s a valuable annual check-in with your finances – consider it a return to your financial portfolio and a great time to make any necessary changes that will help you stay on track to retire at 65. From reviewing your income and expenses to consolidating your super and planning for the year ahead, tax season is your opportunity to reset and refocus.

If you’re feeling overwhelmed or unsure where to start, Best Financial Planners is here to help you with any financial questions and set you up for a more confident financial year ahead. You can access learning resources in our Hints & Tips or speak with a financial advisor in Melbourne, Sydney or wherever you’re located to optimise your financial wellbeing.

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