How Much Does a Financial Advisor Cost in Australia?

Hiring a financial advisor can be a smart move if you want to grow your wealth, plan for retirement, or manage complex investments. But one of the first questions most people ask is: how much does a financial advisor cost in Australia? Understanding financial advisor fees and charges can help you decide whether professional advice is worth the investment.

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Types of Financial Advisor Fees in Australia

Financial advisors in Australia use several fee structures. Here are the most common:

1. Hourly Rates

• Range: $150 – $400 per hour

• Suitable for clients who only need occasional advice or specific consultations.

2. Fixed Fees (Flat Fee)

• Range: $2,000 – $4,000 for a full financial plan (Statement of Advice).

• Good for clients who want a comprehensive plan upfront.

3. Ongoing Advice Fees

• Range: $3,000 – $5,000 per year, depending on portfolio size and complexity.

• Often includes portfolio monitoring, investment updates, and regular reviews.

4. Percentage-Based Fees

• Typically 0.5% – 1% of assets under management.

• More common among high-net-worth clients with large portfolios.

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Average Cost of a Financial Advisor in Australia

Based on industry reports:

• Initial consultation: Sometimes free, or up to $350 per hour.

• Comprehensive financial plan: Around $3,000 on average.

• Annual ongoing advice: Between $3,000 – $5,000 per year.

This means the average cost of financial advice in Australia falls between $150 per hour for simple advice and $5,000 per year for ongoing service.

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Is Financial Advice Worth the Cost?

While hiring a financial advisor is an extra expense, the long-term benefits often outweigh the fees. Professional advice can help you:

• Maximise investment returns.

• Avoid costly financial mistakes.

• Legally reduce your tax obligations.

• Create a secure retirement plan.

• Gain confidence and peace of mind with your finances.

For many Australians, the value of financial advice far exceeds the cost — especially for those with significant assets or complex financial needs.

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Factors That Affect Financial Advisor Fees

The cost of financial advice varies depending on:

• Experience and qualifications of the advisor (CFP professionals may charge more).

• Type of advice (general vs. complex investment strategies).

• Location (fees in major cities may be higher than regional areas).

• Service model (hourly, fixed fee, or percentage of assets).

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Conclusion

So, how much does a financial advisor cost in Australia? The answer depends on your needs and the advisor’s fee model. On average, expect to pay between $2,000 – $5,000 per year for comprehensive advice. For many Australians, this is a worthwhile investment in financial security and peace of mind.

If you’re considering professional advice, always ask upfront about the fees charged by financial advisors to ensure transparency and value.