In the fast-evolving financial landscape of 2025, individuals and businesses alike are increasingly seeking professional financial guidance. Whether it’s navigating complex investments, tax planning, or planning for retirement, a financial advisor can offer the expertise needed to achieve long-term financial success. However, one of the most common questions people ask before engaging with a financial advisor is: how much does a financial advisor cost in Australia?
The cost of hiring a financial advisor can vary depending on the scope of services required, the advisor’s fee structure, and the complexity of your financial situation. In this blog, we’ll break down the average financial advisor fees, explain the financial planners’ fees and charges, and provide a comprehensive look at what you can expect to pay for both one-off advice and ongoing support. By the end of this blog, you’ll have a clearer understanding of the cost of financial advisors and how to choose the best financial advisor for your needs.
How Do Financial Advisors Charge Fees?
Financial advisors in Australia typically use a range of pricing models to charge clients for their services. Understanding these models is crucial to assessing the overall cost and ensuring you are receiving good value. Let’s explore the common ways financial advisors charge fees:
1. Fee for Service
One of the most transparent methods, fee-for-service involves paying a set fee for specific services. These services could include a comprehensive financial plan, retirement advice, or a one-time consultation. One-off financial advice costs can range from $500 to $2,000, depending on the complexity of the advice you need. The benefit of this model is its transparency you know exactly what you’re paying for without hidden costs or ongoing commitments.
2. Asset-Based Fees
Another common fee structure is asset-based fees, where the advisor charges a percentage of the assets they manage for you. Typically, this ranges between 0.5% and 1% of your total investment portfolio. For example, if your advisor manages a portfolio worth $500,000 and charges a 1% fee, you would pay $5,000 annually for their services. This fee tends to rise as your investments grow, making it important to evaluate if the cost aligns with the value the advisor provides.
3. Commission-Based Fees
Some financial advisors earn commissions from product providers, such as insurance companies or investment firms, when they recommend specific financial products. Although this model might seem cost-free at first glance, it’s important to be aware that the cost of financial advisors can sometimes be built into the price of the product itself. While this may not require direct payment from you, the compensation the advisor receives may create potential conflicts of interest, so it’s crucial to understand all charges involved.
4. Hybrid Models
Many advisors employ a combination of the above models. For instance, they may charge an asset-based fee for managing your investments and a flat fee for specific services like financial planning or tax strategy. Some individuals and businesses also prefer obtaining financial advice, especially when they are seeking unbiased recommendations that aren’t tied to the advisor’s own financial products or services.
Average Financial Advisor Costs in Australia (2025)
Understanding the average financial advisor fees is essential for setting realistic expectations about the costs of engaging a financial advisor in 2025. Here’s a general breakdown of what you might expect to pay for various services:
- Initial Consultation:
Most advisors charge a set fee for the first consultation, where they typically assess your financial position and provide general guidance. In some cases, this session may be offered at no cost it’s always best to check in advance. - Comprehensive Financial Plan:
A more in-depth engagement such as creating a tailored financial plan covering retirement, investments, and tax considerations usually involves a one-time planning fee. This cost depends on the scope and complexity of the services provided. - Ongoing Advice:
For those looking for continuous guidance and regular reviews of their financial strategy, advisors may offer annual packages. These typically include periodic check-ins and adjustments to your plan as needed. - One-Off Advice:
If you’re seeking targeted advice for a specific financial goal such as setting up a retirement fund or optimising your tax strategy many advisors provide one-time sessions at a fixed rate.
According to a published article by IFA, the average financial advisor fees are expected to continue rising in 2025, largely due to increasing compliance obligations and growing demand for customised financial advice.
Factors That Influence the Cost
Several factors contribute to the variation in financial planners’ fees and charges. These include:
1. Complexity of Your Financial Situation
If you require detailed financial planning such as estate planning, tax structuring, or investment management expect to pay higher fees. Advisors need more time and expertise to analyse complex situations and provide tailored advice.
2. Scope of Services
The level of service required can significantly influence the cost. For example, someone seeking comprehensive retirement planning and investment management will generally pay more than someone just looking for basic advice on superannuation.
3. Advisor’s Experience and Expertise
Highly experienced financial advisors, particularly those with specialist certifications like the Certified Financial Planner (CFP) designation, often charge higher fees. However, these advisors bring a wealth of knowledge and a deeper understanding of complex financial matters, which can provide excellent value over the long term.
4. Location
Advisory fees can also vary based on location. Financial advisors in major cities like Sydney and Melbourne often charge more due to higher living costs and increased demand for services. Conversely, advisors in rural areas may have lower fees, though this doesn’t necessarily mean they lack experience or expertise.
Are Financial Planning Fees Tax Deductible in Australia (2025)?
A common question many Australians have when considering financial advice is whether they can claim a tax deduction for financial planning fees. The answer depends on the type of advice you’re seeking.The Australian Taxation Office (ATO) outlines that fees related directly to earning investment income may be deductible.
- Investment Advice: Fees for advice related to managing investments, such as portfolio management, are typically tax-deductible, as they are considered necessary for earning income. Whether you work with a major advisory firm or an outsourced financial consultant, fees directly related to earning investment income may generally qualify as tax-deductible expenses under Australian tax law.
- Superannuation Advice: Fees related to superannuation, including structuring super for tax efficiency or optimising retirement savings, are also generally deductible.
- Personal Advice: Fees related to personal financial planning, such as budgeting or general retirement advice, are not deductible unless directly tied to income generation (e.g., advice related to managing a rental property).
Before committing to any financial advisor, make sure to clarify which services are deductible, and consult with your accountant to understand how these deductions may apply to your tax situation.
How to Find a Good Financial Advisor in Australia
Finding the right financial advisor is essential for ensuring that you receive high-quality advice that aligns with your goals. Here are some tips for finding a reliable and trustworthy financial advisor:
1. Check Qualifications and Licensing
Ensure that the advisor is licensed by ASIC (Australian Securities and Investments Commission) and is registered on the Financial Adviser Register. This guarantees that they meet the required professional standards.
2. Ask for Referrals and Reviews
Word of mouth is often one of the best ways to find a trusted financial advisor. Ask friends, family, or colleagues for recommendations, or check online reviews to gauge an advisor’s reputation and customer satisfaction.
3. Assess Specialisations
Not all financial advisors are the same some may specialise in specific areas like retirement planning, tax strategies, or investment management. Make sure the advisor you choose has expertise in the areas that are most relevant to your financial needs.
- Consider Engaging an External Financial Advisor
If you prefer objective advice without the potential biases that may come with internal affiliations, working with an external financial advisor can be a smart choice. External advisors bring a fresh perspective and can offer customised strategies aligned to your personal or business financial goals.
4. Ensure Transparency in Fees
It’s important to know exactly what you’re paying for. A good financial advisor will be transparent about their financial planners’ fees and charges and should provide a clear breakdown of their pricing structure before you proceed.
Conclusion
Understanding how much a financial advisor costs in Australia in 2025 is essential to making an informed decision about your financial future. By examining the average financial advisor fees and the different fee structures available, you can better assess whether the cost of engaging a financial advisor aligns with the value they provide. Whether you need one-off financial advice or ongoing support, the key is to find an advisor who offers transparent fees, expertise in your area of need, and a commitment to your long-term financial success.
Remember, hiring a financial advisor is an investment in your future, and with careful consideration, you can ensure that the services you pay for deliver significant value. Always do your research, understand the costs involved, and consult with your accountant or tax advisor to ensure you make the most of any potential tax deductions.
