Understanding financial advisor fees is an important part of deciding whether professional financial advice is right for you. Whether you're building wealth, managing investments, planning for retirement or reviewing your superannuation, knowing what advice costs and what you receive in return can help you make an informed decision.
There is no single price for financial advice in Australia. Fees vary depending on your circumstances, the complexity of the advice required and whether you're looking for a one-off financial plan or ongoing support.
In this guide, we explain how much financial advice typically costs, the different ways advisors charge for their services, what influences their fees and how to determine whether you're getting value for money.
How Much Does a Financial Advisor Cost in Australia?
The cost of financial advice depends on the services you need. Some people require help with a particular financial decision, while others need a comprehensive strategy covering investments, superannuation, tax planning, insurance and retirement.
Financial advisors use several different fee structures, including:
Fee-for-service: An agreed fee for financial advice or services, which may be charged as a fixed amount, hourly rate or ongoing arrangement.
Initial advice and implementation fees: Fees for developing a financial plan and putting the agreed recommendations into action. Implementation may be included in the initial fee or charged separately.
Ongoing advice fees: Regular fees for financial reviews, strategy adjustments and continued support as your circumstances change.
Hourly fees: Fees charged according to the time spent providing advice or other agreed services.
Asset-based fees: Fees calculated as a percentage of the investment assets managed by an advisor.
Financial advisor commissions: Payments an advisor may receive from certain financial product providers, most commonly in relation to personal insurance.
Importantly, these arrangements will often overlap. For example, an advisor might charge a fixed fee to prepare your financial plan, followed by an ongoing monthly fee for managing your strategy and providing continued advice. Alternatively, an advisor may charge an initial advice fee and also receive an commission where insurance policies are recommended.
When comparing costs, it's important to understand the services included, how the fees are calculated and whether additional investment or product costs apply.
What is the average cost of financial advice in Australia?
According to Adviser Ratings' 2026 Australian Financial Advice Landscape research, the median ongoing financial advice fee in Australia is $4,837 per year. This provides a useful industry benchmark, although the amount you'll pay can vary considerably.
Someone seeking advice on a single financial matter may pay less, while comprehensive financial planning for someone with more complex circumstances may cost considerably more.
It's also important to distinguish between initial and ongoing advice fees. The industry benchmark relates to ongoing advice and doesn't necessarily include the initial cost of developing and implementing a financial plan.
Before engaging an advisor, ask for a clear breakdown of the total costs and the services you'll receive.
What Are the Different Types of Financial Advisor Fees?
Financial advisors use different pricing models, and understanding how each works can help you compare your options.
1. Fee-for-service financial advice
With fee-for-service advice, you pay an agreed fee for the advice or services provided. This might be a fixed amount for a particular piece of work, an hourly rate or an ongoing fee for continuing advice and support.
For example, you might engage an advisor to develop a retirement strategy, review your investment portfolio or provide comprehensive financial planning.
The advantage of this approach is that the cost of advice can be clearly established and separated from the costs of financial products and investments.
At Northeast Wealth, we charge for the advice and services we provide, rather than calculating our fees as a percentage of the investments we manage. Our fees reflect the work involved in developing and managing your financial strategy. This means that as your investment portfolio grows, your advice fees don't automatically increase simply because your investment balance has increased.
2. Initial financial advice and implementation fees
An initial advice fee covers the work involved in understanding your financial position, developing recommendations and preparing a financial plan tailored to your circumstances.
This typically involves reviewing your income, expenses, assets, debts, superannuation, investments, insurance and financial goals. Your advisor will then consider the available strategies, assess their suitability and document their recommendations.
The cost depends on the scope and complexity of the advice. A comprehensive strategy involving multiple investment structures, business interests, complex superannuation arrangements or retirement planning will generally require more work than advice about a single financial matter.
Implementation fees typically relate to the additional work involved in putting the recommendations into action once you’ve agreed to proceed with a financial plan. This might include establishing investment accounts, arranging superannuation changes, implementing investment strategies or applying for personal insurance.
Some advisors include this work in their initial advice fee, while others charge separately for implementation.
At Northeast, we always include the implementation costs in the initial fee. This approach removes confusion and ensures that our members understand the full cost of advice before committing.
Before proceeding with initial advice, make sure you understand:
- What financial matters the advice will cover.
- What recommendations and documentation you'll receive.
- Whether implementation is included in the initial fee.
- What additional costs, if any, may apply.
Understanding these costs upfront will help you compare advisors on a like-for-like basis.
3. Ongoing financial advice fees
For many people, financial planning is an ongoing process rather than a one-off exercise. Your financial circumstances, priorities and goals will change over time, and your financial strategies may need to change with them.
Ongoing financial advice generally includes regular reviews, monitoring your progress towards financial goals, adjusting strategies where appropriate and helping you make informed decisions as your circumstances change.
For example, someone approaching retirement might need to regularly review their superannuation contributions, investment strategy, retirement income projections and the timing of their retirement.
Ongoing fees can be charged monthly, annually or through another agreed arrangement. When comparing ongoing advice services, consider how often you'll meet with your advisor, what work takes place between meetings and what support is available when you need it.
4. Asset-based financial advice fees
Some financial advisors calculate their fees as a percentage of the investment assets they manage on your behalf. This is commonly referred to as an asset-based fee or a percentage of funds under management.
For example, an annual advice fee of 1% on a $500,000 portfolio would equal $5,000. If the portfolio increased to $700,000, the same percentage would result in an annual fee of $7,000, even if the services provided remained broadly unchanged.
This is an important distinction when comparing pricing models, particularly for people with larger investment portfolios.
Asset-based pricing doesn't necessarily mean an advisor provides better or worse value. However, it's worth considering whether the amount you pay appropriately reflects the advice and services you receive.
At Northeast Wealth, we don't charge asset-based advice fees. Our approach separates the cost of financial advice from the value of the investments being managed, which better serves people with higher investment balances.
5. Hourly financial advice fees
Some advisors charge a flat hourly rate for specific services or advice. This can be suitable if you need help with a particular financial decision, want an existing strategy reviewed or have questions that don't require a comprehensive financial plan.
Hourly advice can offer flexibility, although the total cost will depend on how much time is required. Not every advisor offers hourly advice, so it's worth checking whether this option is available.
Before proceeding, ask for an estimate of the hours involved, the applicable hourly rate and what happens if additional work is required. Financial advice in Australia is extremely admin-heavy, and the ‘base hours’ required to deliver simple advice strategies can often come as a surprise.
6. Financial advisor commissions
Financial advisors may receive commissions from certain financial product providers, most commonly in relation to personal insurance.
Unlike advice fees paid directly by a client, these commissions are generally paid by the product provider and may form part of the overall cost of the financial product. Australian law restricts advisors from receiving many forms of conflicted remuneration, although certain insurance commissions remain permitted.
For relevant insurance products issued or sold from 9 July 2025, advisors receiving commissions in connection with personal advice are generally required to obtain the client's informed consent, subject to applicable exceptions.
Your advisor should clearly document and explain any commissions they receive, how those commissions are calculated and whether they could influence the recommendations being made.
It's reasonable to ask how your advisor is remunerated and whether alternative fee arrangements are available.
What Factors Affect Financial Advisor Fees?
The cost of financial advice can vary significantly between individuals. Several factors influence the work required and the fees charged.
The complexity of your financial situation
Someone with straightforward financial circumstances may require less work than someone managing multiple investments, business interests, property, complex superannuation arrangements or significant tax considerations.
The more financial decisions that need to be considered and coordinated, the more involved the advice process is likely to become.
The type of advice you need
Comprehensive financial planning generally involves more work than advice on a single topic. For example, developing a strategy covering retirement, investments, superannuation, debt management and insurance will usually involve greater analysis than reviewing one existing investment.
You don't necessarily need every aspect of your finances reviewed at once. An advisor can help establish which areas require attention and the appropriate scope of advice.
The level of ongoing support
A one-off financial plan and an ongoing advice relationship are different services.
Ongoing advice may include regular financial reviews, strategy adjustments, investment monitoring and support when important decisions arise.
When comparing annual fees, consider both the frequency of advisor meetings and the work carried out throughout the year.
Investment and product costs
Financial advice fees aren't necessarily the only costs involved in managing your money. Depending on the recommendations, additional expenses may include investment platform fees, fund management fees, brokerage, transaction costs and insurance premiums.
These costs are separate from the advisor's fee and should be considered when assessing the overall cost of a financial strategy.
The advisor's experience and expertise
An advisor's qualifications, professional experience and areas of expertise may also influence their fees.
However, paying more doesn't automatically mean receiving better advice. Consider whether the advisor has experience dealing with circumstances similar to yours and can clearly explain the strategies being recommended.
How the advice is delivered
Some financial advisors work primarily through face-to-face meetings, while others provide advice online or use a combination of both. Online financial advice can make it easier to access professional support without needing to travel to an office.
At Northeast Wealth, our advice can be delivered entirely online, giving clients the flexibility to meet with their advisor wherever is most convenient.
Is Financial Advice Worth the Cost?
Whether financial advice represents value for money depends on your circumstances, the quality of the advice and what you gain from the relationship.
While investment performance is important, the value of financial advice extends well beyond selecting investments.
A financial advisor can help you make better use of your income, structure your investments, manage tax considerations, prepare for retirement and understand the financial implications of important decisions.
For example, someone in their 40s or 50s might be deciding whether to make additional mortgage repayments, invest outside superannuation or increase their super contributions. Each option has different implications for tax, investment returns, accessibility and long-term wealth. Understanding how these decisions interact can make a significant difference to the financial position they reach later in life.
Similarly, someone approaching retirement may need to understand when they can afford to finish work, how much they can sustainably spend and how to structure their superannuation and investments to support their lifestyle. Good financial advice helps bring these decisions together into a coordinated strategy.
There are also benefits that are harder to measure. Having a clear plan, knowing where you stand financially and understanding the trade-offs involved in major decisions can provide confidence and peace of mind.
Of course, not every person needs ongoing financial advice, and no advisor can guarantee investment returns or specific financial outcomes. The important consideration is whether the advice provides sufficient value relative to its cost and helps you make decisions that improve your financial position over time.
How to Compare Financial Advisors and Their Fees
Choosing a financial advisor involves more than finding the lowest price. You'll want to understand the services being offered, how the advisor works and whether their approach suits your needs.
1. Understand the total cost
Ask for a clear explanation of all fees associated with the advice.
This should include initial advice, implementation, ongoing services and any additional investment or product costs.
Where fees are calculated as a percentage, ask for the equivalent dollar amount and how that figure may change as your investments grow.
2. Compare the services included
Two advisors charging similar fees may provide very different levels of service.
Consider the scope of financial advice, how frequently you'll meet, what ongoing work is undertaken and the support available between meetings.
A lower fee may reflect a more limited service, while a higher fee might include more comprehensive advice and ongoing support. The most useful comparison is between services that meet your particular needs.
3. Check qualifications and authorisations
In Australia, you can check an advisor's qualifications, registration and authorisations through the Financial advisors Register. You should also review the advisor's Financial Services Guide (FSG), which explains the services available, how the business is remunerated and other important information.
Make sure the advisor has appropriate experience and authorisation to provide advice in the areas relevant to your circumstances.
4. Consider the relationship
Financial planning often involves discussing personal circumstances, important decisions and long-term goals. You should feel comfortable communicating openly with your advisor and confident that they understand what you're trying to achieve.
Ask how the relationship works, who you'll deal with, how frequently you'll review your financial plan and what happens if your circumstances change.
For ongoing arrangements, it's also worth understanding how the agreement can be changed or ended.
Are Financial Advisor Fees Tax-Deductible in Australia?
Some financial advice fees may be tax-deductible, although the treatment depends on the nature and purpose of the advice. The Australian Taxation Office distinguishes between expenses incurred in managing existing income-producing investments, costs associated with establishing new investments and fees relating to managing your tax affairs.
For example, ongoing advice fees relating to an existing income-producing investment portfolio may be deductible to the extent that they satisfy the relevant requirements. By contrast, fees for establishing a new investment or developing an initial investment strategy may be capital in nature and not deductible under the general investment expense rules.
There are also circumstances where advice relating to managing your tax affairs may qualify for a deduction, including certain tax-related components of an initial financial plan.
Where financial advice covers several areas, only the eligible portion of the fee may be deductible. This means an initial advice fee isn't necessarily entirely non-deductible, just as an ongoing advice fee isn't automatically fully deductible.
It's important to retain an itemised invoice and seek guidance from your accountant or tax advisor before claiming a deduction.
For further information, refer to the ATO's Taxation Determination TD 2024/7.
What Are the Rules for Ongoing Financial Advice Fees in Australia?
Australian financial advice arrangements are subject to rules designed to help clients understand the fees they're paying and the services they'll receive. Changes to the ongoing advice fee framework took effect from 10 January 2025, with transitional arrangements applying to certain existing agreements.
Under the current framework, advisors must obtain the relevant written consent when clients enter into or renew an ongoing fee arrangement. Before consent is provided, clients must receive information about the services covered, the fees payable or reasonable estimates where applicable, and the relevant consent period.
The previous annual fee disclosure statement requirement has been removed under the revised framework.
Clients should also understand how ongoing fees are paid, when consent needs to be renewed and how to terminate an arrangement if they no longer wish to continue receiving advice.
These requirements are intended to make ongoing advice arrangements more transparent and ensure clients remain informed about the services they're paying for.
For further information, refer to ASIC's guidance on ongoing fee arrangements and consents.
Frequently Asked Questions About Financial Advisor Fees
What is the average cost of a financial advisor in Australia?
According to Advisor Ratings' 2026 industry research, the median ongoing financial advice fee in Australia is $4,837 per year. Actual fees vary depending on the complexity of your circumstances and the services required. Initial advice and implementation fees may also apply, so it's important to understand the total cost before proceeding.
Is it worth paying for a financial advisor?
Financial advice can provide value through better financial decisions, more effective tax and superannuation strategies, investment planning and preparation for retirement.
Whether it's worth the cost depends on your circumstances, the quality of advice and the benefits you receive.
Can I get financial advice without an ongoing fee?
Yes. Some financial advisors offer one-off or limited-scope advice for specific financial matters. You don't necessarily need an ongoing advice relationship, although regular support may be beneficial as your financial circumstances and goals change.
Can I claim financial advisor fees on tax?
Certain financial advice fees may be deductible, depending on the purpose of the advice and the applicable tax rules. Advice relating to existing income-producing investments or managing your tax affairs may qualify in some circumstances. A good financial advisor should be able to provide a detailed estimate of tax deductions available before you agree to the fees.
Are financial advisor fees deducted from superannuation?
Some financial advice fees can be deducted from your superannuation account where the relevant legal requirements are met. However, not all advice fees are eligible to be paid from super. The treatment depends on the nature of the advice, the relevant superannuation fund and applicable consent requirements.
What should I look for in a Financial Services Guide?
A Financial Services Guide (FSG) explains the services a financial advice business provides, how it is remunerated and any relevant relationships or associations.
It helps you understand how the advisor operates and what costs or other considerations may be relevant before engaging their services.
How do I find a qualified financial advisor in Australia?
Start by identifying the type of advice you need and looking for an advisor with relevant experience. Check their qualifications, registration and authorisations through ASIC's Financial Advisors Register, review their Financial Services Guide and compare the services and fees offered.
It's also important to choose someone you feel comfortable working with and who takes the time to understand your circumstances and goals.
Take the Next Step with Northeast Wealth
As your wealth grows, your financial decisions often become more complex. Understanding how to make the most of your income, investments and superannuation can have a significant impact on the years ahead.
At Northeast Wealth, we help individuals, families and professionals bring these decisions together through tailored financial planning and ongoing advice.
Whether you're building wealth, reviewing your investments, making the most of your superannuation or preparing for retirement, our focus is on developing a clear strategy that reflects your circumstances and goals.
We use a fee-for-service approach, with advice fees based on the services we provide rather than a percentage of the investments we manage.
If you're considering financial advice, we offer a complimentary initial conversation to discuss your circumstances, what you're looking to achieve and whether our services are the right fit.
Direction. Clarity. Progress.
Book your complimentary conversation with Northeast Wealth.
General information only: This article does not consider your objectives, financial situation or needs and should not be relied upon as personal financial, investment or tax advice. Consider whether the information is appropriate for your circumstances and seek professional advice where required.
James O’Reilly is the Director of Northeast, a fast-growing financial advice firm that empowers members to achieve meaningful financial progress and well-being. He's also the co-host of the Australian Retirement Podcast, one of Australia's fastest-growing podcasts.
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