Not all financial advice fees are created equal when it comes to tax deductions. At Advisory One, we’re often asked whether financial planner fees can be claimed on your tax return. The answer depends on the type of advice you receive and how it’s paid for.
Here’s a simple guide to help you understand when you can – and can’t – claim these costs.
When You Can Claim Financial Planning Fees
You may be able to claim part or all of your financial planner’s fees if the advice directly relates to producing assessable income or managing your tax affairs. Common examples include:
• Ongoing investment advice – Regular portfolio reviews or advice about income-generating investments can be claimed under general deduction rules.
• Advice relating to income protection insurance – If your adviser provides guidance on income protection insurance (and the premiums are deductible), the associated advice fee may also be deductible.
• Tax advice from a registered adviser – If your financial planner is also a registered tax agent or Qualified Tax Relevant Provider (QTRP), fees for tax advice (e.g. CGT, salary packaging) are deductible under specific tax agent rules.
When You Can’t Claim Financial Planning Fees
Unfortunately, not all fees are deductible. You generally can’t claim fees for:
• Initial or upfront advice – This includes fees for creating a financial plan, setting up a strategy, or establishing a new investment portfolio. These are considered capital in nature.
• Personal or private advice – Advice about budgeting, super contributions (unless income-producing), or personal insurance such as life or trauma cover is not deductible.
• Fees paid from your super – If your advice fees are deducted from your superannuation account, you can’t personally claim them in your tax return.
Apportioning Mixed Fees
In many cases, your financial planner’s invoice will include both deductible and non-deductible components. You’ll need to apportion the fee based on the nature of the advice.
For example:
– 60% of the meeting may relate to ongoing investment advice (deductible),
– 40% might cover estate planning and super contributions (non-deductible).
To support your claim, keep:
– An itemised invoice from your adviser,
– Notes outlining the time or cost split between different advice areas.
Need Help?
Understanding what can and can’t be claimed is crucial for getting the most out of your tax return—without raising red flags with the ATO. If you’re unsure, talk to your accountant or let us help review your financial advice fees.
At Advisory One, we work closely with financial advisers to ensure our clients get practical, compliant advice—and that they’re claiming everything they’re entitled to. Want more tax tips like this? Contact us today or book a strategy session before tax time.
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