Median advice fees up 18% to $4,668
Median advice fees have risen 18% to $4,668, according to the latest analysis from Adviser Ratings.
It said this represented a 67% increase over the past five years, “far outpacing the 20.5% inflation rate during the same period”.
The latest Adviser Ratings Australian Financial Advice Landscape report said the “pricing evolution” reflected both the increased cost of delivering complaint advice and the shifting value proposition as advisers focus on more complex client needs and higher-value services.
It also pointed to funds under advice per client having increased by 11% in 2025 to $758,362 while the national average funds under advice per adviser had increased 21% over the last three years.
“This increase reflects a maturing profession that has found equilibrium after years of disruption through implementing the Royal Commission, professional standards and COVID-19 from 2018-2020,” it said.
The Adviser Ratings analysis said the increasing focus on higher value clients is driving practices to develop specialised service models tailored to specific occupational groups.
“This specialisation extends beyond service delivery to marketing strategies, technology selection and even office design, with practices increasingly positioned as exclusive professional spaces rather than retail financial shopfronts” it said.
The Adviser Ratings research said the client engagement model has evolved to match changing advice dynamics with the typical adviser now serving over 100 clients annually.
It said most advisers (55%) meet with clients annually, with only 5% maintaining quarterly engagements reflecting the professionals shift toward more efficient service models.
The analysis noted that the efficiency imperative was further evidenced by the split between recurring and one-off clients over recent year, hovering around the 77%/23% level “suggesting practices have found a sustainable balance between ongoing relationships and transactional advice”.
kind of like the government fees outpacing inflation?
ASIC Adviser Levy = It has now risen by 282% to $3,217 per adviser for 2022-23.
Who’s costs and levies are out pacing ALL.
Freaking Canberra, that’s who.
As for the CSLR, 1000% increases or what ???
The ASIC levy should be the headline.
Oh yeah, and what does the adviser community to have show for these payments?
Joke. Total joke.
This stat can be read numerous ways. We are one of those businesses that have created significant increases in average fee per client over the last few years. This was achieved by dropping off clients with low annual fees and only onboarding new client at a certain minimum fee. I am sure 99% of advice firms have done the same. I think this example needs to be part of the headline or when mainstream media get this as a headline, then it will be negative press for our profession.
Since the red tape is actually increasing and not deceasing, this makes perfect sense.
Might be a reflection of the introduction of new taxes on financial planners via the CSLR tax and ASIC tax, also the ever increasing regulation. Seems both these things could be fixed by the government if they were really worried about the cost and accessibility of financial advice.
What did you expect. Canberra red tape, professional uncertainty continues, CSLR, licensing costs, PI costs, a regulator that seems motivated to smash advisers, legislators that promised a lot but in reality couldn’t be trusted to run a bath.
Now the solution is to allow ‘friends of the party’ to fill the gap using vertical integration and collective charging.
What a joke.
Australia is cooked.
Wow – Median advice fees have risen 18% to $4,668
I’m a stockbroker so I charge ZERO advice fees just brokerage of 1%+gst
The cost of financial services in this country is becoming a luxury item. Everyone want’s nothing but Whale clients. The normal fella (or madam) doesn’t even get a look in these days.
Dealing in Retail is just not worth the risk. Either Wholesale or run a clear general advice model the only way to minimise the ever increasing fees imposed on advisers on the Financial Register. If the CSLR keeps going up then the whole retail advisory sector becomes untenable.
I pity any young person wanting to make a start in this highly…not insanely over regulated profession.