For ongoing portfolio management and strategic reviews, clients can expect to pay either a flat annual retainer between $3,000 and $6,000, or a percentage-based fee of 0.75% to 1.5% of the total assets under management.
Initial discovery consultations are frequently offered at no charge or a minimal flat fee of around $300.
Understanding this tiered fee structure ensures residents in the Goulburn Valley can budget appropriately for professional wealth management without encountering unexpected compliance or implementation charges.
Breaking Down Financial Planning Fees
When establishing a relationship with a financial advisory firm in regional Victoria, it is critical to understand that the industry has transitioned away from hidden commissions toward transparent, fee-for-service models.
The billing structure is typically divided into three distinct phases:
The Statement of Advice (SoA) Fee Before a financial planner can legally implement any strategy, they must present a formal Statement of Advice (SoA). This legally binding document outlines your current financial position, the recommended strategies (such as superannuation consolidation or investment restructuring), the associated risks, and projected outcomes.
Because producing a compliant SoA requires extensive research and financial modelling, the preparation fee is substantial. A basic SoA for a single professional might cost $2,500, while a complex SoA involving self-managed super funds (SMSFs), trusts, and business structures can exceed $5,000.
Implementation Fees Once you approve the strategies outlined in the SoA, the adviser must execute them.
This involves opening new investment accounts, rolling over superannuation funds, purchasing equities, and establishing insurance policies.
Implementation fees are generally charged as a flat rate, ranging from $500 to $2,000, covering the administrative and compliance labour required to establish your new financial architecture.
Ongoing Management and Review Fees Wealth creation is not a static process. Economic conditions, tax legislation, and personal circumstances constantly evolve.
Planners charge an ongoing fee to actively manage your portfolio, rebalance asset allocations, and conduct annual strategic reviews.
This is charged either as a fixed annual retainer (ideal for high-net-worth individuals to cap costs) or as an Asset Based Fee (a percentage of your total portfolio value).
The End of Investment Commissions
Following significant legislative reforms in Australia, including the Future of Financial Advice (FoFA) and the Banking Royal Commission, financial planners are legally prohibited from receiving trailing commissions on superannuation and investment products.
They must operate as fiduciaries, charging transparent fees directly to the client.
The only exception remains life insurance products (such as Income Protection or Total and Permanent Disability insurance), where advisers may still receive a regulated upfront commission from the insurer, which must be explicitly disclosed in your SoA.
Authoritative Financial Resources
- Moneysmart (ASIC): moneysmart.gov.au
- Financial Advice Association Australia (FAAA): faaa.au
- Australian Taxation Office (ATO): ato.gov.au
Frequently Asked Questions
What is the average cost of a Statement of Advice (SoA) in Shepparton?
The average cost for a comprehensive Statement of Advice ranges between $2,500 and $5,000, dictated entirely by the complexity of the strategies and structures required.
Do financial planners offer free initial consultations?
Yes. Most reputable planners in the Goulburn Valley offer an initial 45-to-60-minute discovery meeting at no cost to determine if their services align with your financial goals.
Are financial planning fees tax-deductible in Australia?
The initial fee for creating a financial plan (the SoA) is generally not tax-deductible.
However, ongoing management fees relating directly to producing assessable income from your investments are usually tax-deductible.
Always confirm with an accountant.
Can I pay my financial planning fees using my superannuation?
Yes. In many cases, if the financial advice relates strictly to your superannuation investments and retirement strategies, the advice fees can be deducted directly from your superannuation balance rather than your personal bank account.
What is an Asset Based Fee?
An Asset Based Fee is an ongoing management charge calculated as a percentage of the total funds the adviser manages for you, typically ranging from 0.75% to 1.5% annually.
Do financial planners still get commissions on investments? No. Australian law strictly prohibits financial advisers from receiving trailing commissions on superannuation and investment products. They must operate on a transparent, fee-for-service basis.
Do advisers get commissions on life insurance?
Yes. Planners can still receive regulated commissions from insurance providers for placing life, TPD, trauma, and income protection policies. These commissions must be legally disclosed in your Statement of Advice.
Am I locked into paying ongoing fees forever?
No. Under current Australian regulations, clients must sign an annual fee consent form. If you do not explicitly opt-in to continue the service each year, the planner must cease charging ongoing fees.
"This information is of a general nature only and should not be regarded as specific to any particular situation. Readers are encouraged to seek appropriate professional advice based on their personal circumstances. This is content submitted by a third party. It does not necessarily represent the views of the publisher of this website."
