What Does Financial Advice Cost in NSW? Fees, Models, Examples, and How to Budget
Summary
In NSW, advice is priced by scope and model: fixed project fees, ongoing retainers, hourly work, or asset‑based fees. Commissions on investments are banned; capped commissions remain for insurance. There’s no fee cap, but annual consent and disclosure apply. Compare all‑in cost, incentives, and documented value before choosing.
Table of Contents
- Introduction – What You Pay and What You Get
- How Financial Advisers Charge in NSW
- What Goes into the Cost of Advice
- Do Financial Advisers Take Commissions?
- Is There a Regulation on How Much Advisers Can Charge?
- How Advisers Should Ideally Be Paid
- Independent vs Institution-linked – Fee Patterns
- Do the Benefits Outweigh the Cost? Three Scenarios with Numbers
- Which Financial Adviser to Choose Based on Budget
- Questions to Ask Before You Sign
- Conclusion
- FAQs
Introduction – What You Pay and What You Get
The price of financial advice in NSW varies with scope, complexity, and the service model you choose. Clients pay for licensed strategy, formal documentation, implementation, and ongoing review. This guide explains fee types, typical NSW ranges, the role of commissions, how regulation shapes pricing, and how to assess value with numbers, not guesses.
James Hayes’ approach:
Complimentary 15‑minute phone call – triage and fit.
Complimentary first 60‑minute meeting – scope, goals, and feasibility.
If advice proceeds, typical upfront fee: $2,200–$6,600, depending on complexity.
James is upfront if advice is not suitable and will refer you elsewhere when that is in your interests.
How Financial Advisers Charge in NSW
Advisers use one or a blend of the following fee models. The right model depends on scope, preference for clarity vs variability, and how often you want reviews.
Common models in NSW:
Fixed project fee: A set price for a defined Statement of Advice and implementation.
Ongoing service fee: A monthly or annual fee for reviews, reporting, and updates.
Hourly rate: Time‑based work for limited‑scope engagements.
Asset‑based fee: A percentage of funds under advice; still common but requires careful disclosure.
Insurance commissions: Permitted under caps for personal risk cover; disclosure in dollars is mandatory.
Typical NSW price guide (illustrative ranges, GST exclusive where applicable):
| Fee model | Typical NSW range | When used |
|---|---|---|
| Fixed project fee (SoA + implementation) | $2,000–$7,000 | Comprehensive or multi-topic advice |
| Ongoing service fee | $1,800–$5,500 p.a. | Annual reviews, monitoring, and updates |
| Hourly rate | $220–$440 per hour | Single-issue or limited-scope work |
| Asset-based fee | 0.50%–1.00% p.a. | Portfolio management on platforms |
| Life insurance commissions | Capped by law; disclosed in dollars | Personal risk cover advice and placement |
Prices vary by adviser experience, licensee overheads, and complexity. Ask for a written quote with inclusions before you commit.
What Goes into the Cost of Advice
Advice fees fund regulated work that most clients never see but rely upon.
Discovery and analysis: Data gathering, cashflow, super, investments, debt, and insurance.
Strategy design: Scenario modelling, retirement projections, risk profiling, and portfolio design.
Product and platform research: Comparing fees, mandates, and features against your needs.
Compliance documents: Financial Services Guide, Statement of Advice, Records of Advice.
Implementation: Paperwork, platform setup, insurer liaison, and transfer of assets.
Ongoing service: Scheduled reviews, rebalancing recommendations, legislative updates, and reporting.
Professional obligations: AFSL supervision, PI insurance, CPD, audits, and quality assurance.
This is why high‑quality advice cannot be free. If a service is “free”, costs are usually embedded elsewhere.
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Do Financial Advisers Take Commissions?
If you are unsure whether a payment is a commission or a fee, request it in writing as a dollar figure.
Investments and Super
Conflicted remuneration is banned. Commissions on most investment and super products are prohibited, and grandfathered payments have been removed.
Personal Risk Insurance
Commissions are permitted within legislated caps. Advisers must disclose the dollar amounts and explain how they influence recommendations. Independent advisers often offer a fee alternative or rebate, so ask which option applies.
Is There a Regulation on How Much Advisers Can Charge?
There is no statutory cap on advice fees in Australia. However:
Ongoing fee arrangements must be renewed each year with explicit fee‑consent forms.
Superannuation trustees only permit advice fees that relate to the member’s interests and meet fund rules.
Fee disclosure must be clear, with services delivered as promised.
Conflicted remuneration rules restrict how advisers are paid for investments and super.
These safeguards are designed to make pricing transparent and aligned to your interests.
How Advisers Should Ideally Be Paid
The cleaner the incentives, the easier it is to trust the recommendation. Many clients prefer:
Client‑funded fixed project fees for strategy and documentation.
Transparent ongoing fees for agreed reviews and reporting.
Clear disclosure for any asset‑based fees.
Insurance commissions only where a fee alternative is impractical, with full dollar disclosure.
The objective is clarity: who pays, how much, and for which service.
Independent vs Institution‑linked – Fee Patterns
Both models must disclose fees, yet pricing structures often look different in practice.
| Aspect | Independent Adviser | Institution-linked Adviser |
|---|---|---|
| Upfront fee | Common for full SoA (e.g., $2k–$7k) | May discount upfront and rely on platform or bundled pricing |
| Ongoing | Flat retainer typical (e.g., $1.8k–$5.5k p.a.) | Often asset-based or blended with platform fees |
| Platform | Open-architecture; platform chosen case-by-case | Group platforms common; bundled fee schedules |
| Insurance | Fee or commission model with clear disclosure | Commission model common under licensee rules |
| Disclosure | Direct, client-funded focus | Must disclose group links and ownership |
When comparing, assess the all‑in cost – advice fee plus platform and fund fees – not just the advice line item.
Do the Benefits Outweigh the Cost? Three Scenarios with Numbers
The figures below are illustrative and exclude market performance. They show how everyday adjustments can fund the cost of advice. Your situation will differ.
Scenario 1 – Pre‑retiree Couple, Fee and Tax Savings Over 3 Years
- Combined super: $800,000.
- Current blended fees: 1.2%. Proposed blended fees: 0.7%. Annual saving: 0.5% × $800,000 = $4,000.
- Salary sacrifice: $10,000 each per year at a 34.5% marginal tax rate. Contributions tax in super is 15%. Annual tax saving: $10,000 × 19.5% × 2 = $3,900.
- Three-year benefit (ignoring compounding): $4,000 × 3 + $3,900 × 3 = $23,700.
- Illustrative advice costs: $4,400 upfront and $2,200 p.a. ongoing = $11,000 over three years.
- Net three-year gain: $12,700.
Scenario 2 – High‑income Household, Fee and Tax Savings Over 5 Years
- Investable assets: $250,000 in a 1.3% MER managed fund. Move to 0.1% MER ETFs. Annual saving: 1.2% × $250,000 = $3,000.
- Salary sacrifice by higher earner: $15,000 p.a. at a 39% marginal rate; contributions tax 15%. Annual tax saving: $15,000 × 24% = $3,600.
- Insurance optimisation: $600 p.a. premium reduction.
- Annual benefit: $7,200.
- Illustrative advice costs: $3,300 upfront and $2,200 p.a. ongoing = $14,300 over five years.
- Five-year benefit: $7,200 × 5 = $36,000. Net gain: $21,700.
Scenario 3 – Inheritance and Mortgage Offset
Inheritance: $600,000. Move $100,000 to mortgage offset at 6% interest – interest saved: $6,000 p.a.
Shift $500,000 from a 1.5% fee solution to 0.2% – annual fee saving: 1.3% × $500,000 = $6,500.
Annual benefit: $12,500.
Illustrative advice costs: $5,500 upfront and $2,200 p.a. ongoing = $7,700 in year one and $2,200 each year after.
Year one net: $4,800. Subsequent years: $10,300 p.a.
These examples show how fee reductions, tax settings, and debt strategy often fund the advice fee. They are not projections or guarantees.
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Budgeting for Advice – A Simple Worksheet
Use this worksheet to decide what you can pay and what you stand to gain. Keep your numbers conservative.
Step 1 – List Potential Dollar Benefits
Investment/fund fee savings: $______ per year
Platform changes: $______ per year
Tax savings from contributions: $______ per year
Insurance premium reduction: $______ per year
Interest saved via offset or restructuring: $______ per year
Subtotal benefit: $______ per year
Step 2 – List Total Advice Costs
Upfront project fee: $______ one‑off
Ongoing service fee: $______ per year
Platform administration: $______ per year
Fund MERs: $______ per year
Subtotal cost: $______ per year (exclude one‑off for an annual view)
Step 3 – Compare
Annual benefit minus annual cost: $______ per year
If positive, the advice may fund itself. If negative, refine scope or seek a limited‑issue engagement.
Which Financial Adviser to Choose Based on Budget
Price is one filter; complexity and objectives matter just as much. Use the ranges below as a guide.
| Budget | Suitable Engagement Style | Typical Scope |
|---|---|---|
| $0–$1,000 | Education and triage | Discovery call, goal setting, signposts |
| $1,000–$2,000 | Limited-scope session | Single issue – e.g., contribution strategy |
| $2,000–$4,000 | Targeted project | Two to three topics and a short SoA |
| $4,000–$7,000 | Full plan | Retirement path, portfolio, insurance, estate alignment |
| $7,000–$12,000+ | Complex advice | SMSF, entities, inheritance, multi-party planning |
If you prefer a local, relationship‑led approach in the Sutherland Shire or Sydney CBD, book a complimentary call with James Hayes.
Questions to Ask Before You Sign
Clear answers here will tell you what you need to know.
How are you paid – fixed fee, retainer, asset‑based, or a mix?
What is my all‑in cost – advice, platform, fund MERs, and any commissions in dollars?
What do I receive for the fee – meetings, reports, rebalancing, and access?
What conflicts exist – product ownership, platform ties, or volume targets?
How will you measure progress, and how often will we review?
Request all answers in writing and keep them with your Statement of Advice.
Conclusion
The cheapest advice can be costly if it steers you into high‑fee products or neglects risk. The most expensive plan can be worth it if it saves avoidable fees, reduces tax leakage, manages risk properly, and keeps you on track. Compare advisers on all‑in cost, incentives, documented process, and fit. Then choose the model that serves your goals. Book a free 15-minute introductory call with James Hayes today.
FAQs
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Sometimes. Super funds allow fees that relate to advice for that specific member and meet fund rules. I explain when deduction is possible and when it is not, and I disclose the all‑in cost in dollars. If deduction isn’t appropriate, we price a client‑paid option.
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Neither is “better” on its own. Asset‑based fees rise with your balance, which some clients prefer. Flat fees give price certainty. I present both where they fit and disclose the dollar impact each year. The important part is that incentives are clear and documented in your Statement of Advice.
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Not for investments or super. For personal insurance, the law still permits capped commissions. I always disclose the dollar amount and provide a fee alternative where viable. You choose the structure you prefer. My recommendations are based on your needs, not on how I am paid.
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Complexity drives time. A single‑issue contribution strategy is very different from retirement modelling, portfolio design, insurance analysis, and estate alignment. My upfront fee reflects the analysis, research, documentation, and implementation involved. You receive a written quote with inclusions before any work begins.
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Add quantifiable benefits – fund fee reductions, tax savings from contributions, insurance premium changes, and debt interest saved – then subtract all‑in costs. If the number is positive and the plan addresses risk and discipline, it’s usually worth proceeding. I provide this comparison in writing so you can decide.
Disclaimer
The information in this article is provided as a general guide only. It does not constitute personal financial advice and should not be relied upon as such. Readers should seek advice from a licensed financial adviser before making any financial decisions. James Hayes and his associated entities accept no responsibility or liability for any loss, damage, or action taken in reliance on the information contained in this article. Links to third-party websites are provided for reference purposes only. We do not endorse or guarantee the accuracy of their content.