When it comes to managing your financial future, having the right guidance is crucial. Financial advisors play an integral role in helping individuals make informed decisions, including offering existing investment portfolio advice to optimise returns, and enable a secure financial future.
Before you look into professional financial advice, it's important to understand the various financial advisor fees and how they might apply to your personal circumstances. In this comprehensive guide, we'll explore these costs, delve into the factors influencing financial advisor fees in Australia, and answer frequently asked questions.
At a glance, typical fees in 2025 may include some or all of:
- Initial advice (SOA): ~ $3,500–$6,000+ (noting this is the median fee and it's common for fees to be higher). (Source: MoneySmart)
- Ongoing advice (retainer): The most recent 2025 median is $4,668 p.a. as costs continue to rise across compliance and professional services wages. (Source: Vanguard Fund, 2025 Australian Financial Advice Landscape report)
- Asset-based fees (AUM): ~0.5%–2% p.a. of assets managed - although advice firms are increasingly moving away from this model as it creates an obvious conflict of interest. (Source: Coleman Financial)
- Flat/fixed fees: ~$2,000–$20,000 depending on scope/complexity. (Source: Treasury)Treasury
- Hourly rates (rare): typically $275–$550/hr for ad-hoc work.
- Insurance commissions (where applicable): capped at 60% in year 1 and 20% ongoing by law. (Source: FAAA)
Why fees are trending higher: Industry data shows fees have risen sharply due to inflationary pressures and rising compliance requirements, with 2025’s median up 18% year-on-year. (Source: Financial planner)
The information on this page is general in nature. It does not consider your objectives, financial situation or needs. Before acting, consider whether it’s appropriate for you and read any relevant disclosure documents (e.g., PDS). You may wish to seek personal advice from a licensed financial adviser.
How Much Does a Financial Adviser Cost?
Let's explore these financial adviser fee structures in detail to get a clearer understanding of the financial advisor costs you might encounter.
There’s no single price tag. For context, the median ongoing fee was $3,960 in 2024, and ~$4,668 in 2025—a five-year rise of ~67%, outpacing CPI. This fee typically includes services such as investment management fees. This represents a steady increase from previous years as compliance and service costs continue to rise.
How Financial Advisors Charge
Let's take a look at the most common ways that a financial advisory practice will charge their clients, as typically outlined in their Financial Services Guide:
1) Fee-for-Service
Financial advisors understand that clients have diverse needs. That's why some advisors charge based on the specific service they provide, whether you require some basic ongoing advice, or a full Statement Of Advice (SOA).
In this model, it's reasonable to expect a detailed breakdown of the services being offered and your specific fixed fee to receive those services. The upside of this advice fee structure is a high level of transparency, and allowing you to commit to the specific services which you feel are needed or valuable.
Here’s a typical breakdown of financial advice fees in Australia, adapted from ASIC’s MoneySmart guidelines:
Typical inclusions:
- Initial Statement of Advice (SOA), implementation
- Scheduled reviews (annual/semi-annual), rebalancing, reporting
2) Percentage of Assets Under Management (AUM)
Another common fee structure sees financial advisors charging 'asset-based fees', calculated as a percentage of the assets they manage on your behalf, known as the 'Assets Under Management' (AUM) or 'Funds Under Management' (FUM). Typically, this asset-based or percentage fee falls within the range of 0.5% to 2% per year.
For example, a $500,000 portfolio under management could attract annual fees of around $2,500–$7,500, depending on the adviser’s structure.
Advisors who use this fee structure argue that it aligns their success with yours, as they have a vested interest in growing your investment portfolio, which will in turn grow their ongoing fees. AUM therefore aligns incentives - but total fees rise as your balance does, which can give rise to higher costs without any additional work being completed. Northeast Wealth doesn't charge asset-based fees for this reason.
3) Commission-based
We're pleased to report that most product-based commissions are now a thing of the past. Recent regulatory changes, such as the Future of Financial Advice (FoFA) reforms, have banned most commission-based fees to reduce conflicts of interest and better protect consumers.
Life insurance is an exception - some advisers who write life insurance may receive commissions on those policies. These commission are now subject to tighter commission caps (~60% of upfront premiums, ~20% of ongoing).
For instance, an advisor might get a commission if they establish a personal insurance policy on your behalf. In this case, it is the insurer that pays the financial advisor directly. This can result in lower and sometimes nil additional payments for the client.
Importantly, as of 9 July 2025 there are informed client consent requirements to ensure that clients are made aware if an adviser is being paid a commission and what services they can expect.
4) Hourly rates
Hourly rate fees are a less common method of charging fees for financial advisors, but they still pop up from time to time. Hourly rates for an experienced financial advisor typically range from $275 to $550 per hour plus GST, depending on their background and areas of expertise.
Financial advisors tend to avoid this model because there are often many hours of 'back-end work' to accompany each hour of client-facing time, which can leave some people feeling that they are being overcharged on a pure hourly rate.
Your rights on ongoing fees (2025 rule changes)
From 10 January 2025, advisers face increased regulation to obtain your written consent before charging or deducting ongoing fees. Annual consent and renewal have been streamlined; fee disclosure statements (FDS) are no longer required.
What Factors Affect Overall Financial Advisor Costs?
Let's dive into the factors that influence financial advisor costs. Whether you're considering working with a financial advisor in Australia or elsewhere, these determinants will help you understand how financial advisors typically establish their pricing:
1) Type of Service
Different types of financial advice come with different fee structures. For instance, comprehensive financial planning is likely to cost more than isolated advice on a single issue, such as reviewing a proposed investment, or making additional contributions to super. The complexity and breadth of the financial plan will therefore play a significant role in determining the cost.
2) Fee Structure
The fee structure you choose can significantly impact the total cost of financial advice. Depending on your financial requirements and preferences, you may determine that you're going to obtain a better outcome via a fee-for-service, percentage-based fees, or a commission-based structure.
Aligning the fee structure with your needs helps you make informed decisions about the financial advisor costs.
3) Level of Expertise and Experience
The expertise and experience of a financial advisor will affect your fees. Advisors with more experience, qualifications, and specialised expertise will charge higher fees than those who are less experienced.
Seeking comprehensive advice from a Certified Financial Planner or an advisor with a strong reputation may come at a premium. But you'll likely get a financial plan that reflects the value of their experience.
4) Reputation and Brand
Well-established firms or highly regarded financial advisors may charge more for their services due to their brand recognition and track record of success. While this might mean higher financial advisor costs, it can also provide confidence in the quality of the advice you receive, making it a worthwhile investment.
5) Location
The geographic location can be a factor influencing financial advisor costs. Advisors in metropolitan areas often charge more than those in regional or rural areas, reflecting differences in the cost of living and overhead expenses.
When selecting a financial advisor, consider your location and how it might affect your budget.
6) Advice relationship
Consider the nature of your financial needs to determine the most suitable fee structure and whether you require personal advice. Some advisors provide ongoing financial advice and charge a retainer or an ongoing fee.
In contrast, others might offer one-off advice for a specific need, which comes with a set price. Understanding your ongoing financial advice requirements will help you choose the right structure.
7) Regulations
Regulatory changes, like the FoFA reforms, have impacted how financial advisors can charge for their services and the types of commissions they can receive. Staying informed about these regulations can support your understanding of the cost structures, and ensure that any fees paid are compliant with industry standards.
8) Complexity of Your Financial Situation
The complexity of your financial situation is a key determinant of financial advisor costs. If you have a complex financial situation, require a detailed financial strategy or investment strategies, or possess significant assets, the advice you receive will likely be more comprehensive and, therefore, more expensive.
In return, your advisor should spend more time and effort addressing your financial matters, justifying the higher cost.
9) Type of Financial Products Recommended
The financial products recommended by your advisor, such as when purchasing investments, can also influence the total cost. Some financial products, such as ordinary investments or complex niche ones, may come with higher fees.
It's important to discuss the types of financial products recommended and understand their implications on the overall cost of financial advice.
Are Financial Advisors Worth Paying?
This is one of the most critical questions you might ask if you're looking to grow your wealth. And it's a justifiable question because everyone should know whether they're getting their money's worth for a service.
Multiple studies suggest professional advice can add ~1.5%–4%+ per year over time, mostly via behavioural coaching, asset allocation, tax-smart implementation, and withdrawal sequencing. This, of course, is not guaranteed.
Read this Article Next: Is it worth paying for a financial advisor in Australia
The answer depends on your unique financial situation, personal financial goals, risk tolerance, and needs. A highly qualified financial advisor can provide valuable insights into your wealth management, help you make informed financial decisions, offer financial counselling, and potentially save you money in the long run. The benefits of sound financial advice should always outweigh the costs.
If you want to work with financial advisors who will not waste your hard-earned money, we'd love to speak with you. The team at Northeast Wealth is committed to helping you reach your financial goals with absolute efficiency. Talk to us today, and we'd love to explore the possibility of helping you reach your financial goals.
Frequently Asked Questions (FAQs)
Are Financial Planning Fees Tax-Deductible in Australia?
A common query among Australians is whether financial planning fees can be claimed as a tax deduction. While it's advisable to consult with a tax professional or the Australian Taxation Office (ATO) for specific tax planning advice, recent tax changes have opened the doors to make more advisory fees deductible - for both upfront and ongoing advice.
Financial planning fees are likely to be tax-deductible where they relate to income-producing assets (such as ongoing investment advice), or when they relate to tax management.
It's prudent to understand that your initial (or "upfront") fees are less likely to be tax-deductible. These fees can be deemed by the ATO as a 'capital cost', similar to the cost of a conveyancer when purchasing an investment property. Ongoing fees, on the other hand, are typically tax-deductible provided they meet the conditions above.
Tax considerations and changing tax laws are an essential aspect of financial planning, and seeking expert advice on this matter is advisable.
Check the ATO guidance: ongoing fees directly relating to earning assessable investment income may be deductible; upfront plan/set-up fees generally are not.
How can I get free financial advice in Australia?
Australia offers very limited access to organisations and government programs that provide free or low-cost personalised financial advice services. There are a range of valuable websites to support your financial journey, such as Moneysmart.
These resources can be a valuable starting point for those seeking financial guidance to make sure they don't incur significant financial advisor fees.
Can you claim financial advisor fees on tax ATO?
As noted above, the Australian Taxation Office (ATO) allows for certain deductions related to investment advice and financial planning services. However, the specific rules and eligibility criteria may vary, making it important to consult with a tax professional or review the ATO guidelines to determine if your financial advisor costs are tax-deductible.
What is the average cost to see a financial advisor?
The cost of seeking financial advice can vary widely based on the factors mentioned earlier. According to the Financial Planning Association, some 93% of financial advisers planner to raise their fees in 2025.
As noted above, the median ongoing annual fee is now AU$4,668. Initial advice documents (SOAs) often cost between $3,500 and $6,000, and often considerably higher in instances of high complexity.
Financial advisers charge differently, but on average, you can expect to pay fees that align with your specific financial needs, ranging from one-time consultations to ongoing comprehensive ongoing advice.
Discussing fees and the expected costs with your chosen financial advisor is a critical part of the initial consultation.
Do I need a financial advisor to manage my super?
While it's not mandatory to have a financial advisor manage your superannuation, seeking professional advice can help you with your retirement planning, optimise your super, and make informed investment decisions for your retirement.
Understanding your superannuation options and the related personal financial advice fees can put you on the path to a comfortable retirement.
How can I find a financial adviser?
Finding a financial advisor in Australia can be a crucial step if you want to seek advice and secure your financial future.
You can start by asking for recommendations from friends or family, checking professional associations, or using online directories. Don't get intimidated by the question, “How much does a financial advisor cost?” because it is a form of investment that will greatly benefit your wealth.
How to verify an adviser (before you sign):
- Search the Financial Advisers Register (FAR): Confirm registration, authorisations, qualifications, and history.
- Check AFS licence: Ensure the business holds an Australian Financial Services (AFS) licence or that your adviser is an authorised representative.
- Professional associations: Look up the Financial Advice Association Australia (FAAA) “Find a Planner” directory for members who commit to ethical standards.
- Client feedback: Read reviews/testimonials and ask for references; compare scope, cadence, and inclusions across firms.
Your choice of a financial advisor can significantly impact your financial well-being, provide the right financial advice, and grow your investment portfolio, making it important to conduct thorough research before making a selection.
James O’Reilly is the Director of Northeast, a fast-growing financial advice firm that empowers clients 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.