Are Financial Advice Fees Tax Deductible? (In Simple Terms)
One of the most common questions people ask when they’re thinking about getting financial advice is pretty straightforward:
The simple version
If the advice you’re getting is directly related to earning income, there’s a good chance some (or all) of the fee may be tax deductible.
If it’s more about setting up your finances, building a plan, or personal goals, then generally it’s not deductible.
Historically, upfront (or initial) advice fees were often treated as non-deductible, because they were seen as setting up your financial position.
But more recent guidance has clarified that this isn’t always the case.
If an upfront advice fee relates to producing assessable income (for example, investment advice), then part of that upfront fee may now be tax deductible.
This is a big deal — because it means deductibility isn’t just limited to ongoing fees anymore.
This is especially relevant now with upfront fees — because only the investment-related portion may be deductible.
With upfront fees potentially being partly deductible, clients may be able to reduce the after-tax cost of getting started with advice — not just the ongoing costs.
That can make it easier for people to engage with advice earlier.
Tax deductibility depends on:
The rules have evolved — especially around upfront fees — so getting this right can make a meaningful difference.
General information only — always seek personal tax advice before making any decisions.
“Can I claim the fees on tax?”The answer is… sometimes. And like most things with tax, it depends on what the advice is actually for.
The simple version
If the advice you’re getting is directly related to earning income, there’s a good chance some (or all) of the fee may be tax deductible.
If it’s more about setting up your finances, building a plan, or personal goals, then generally it’s not deductible.
What’s changed recently?
There’s been a really important shift in how the tax office is looking at upfront advice fees.Historically, upfront (or initial) advice fees were often treated as non-deductible, because they were seen as setting up your financial position.
But more recent guidance has clarified that this isn’t always the case.
If an upfront advice fee relates to producing assessable income (for example, investment advice), then part of that upfront fee may now be tax deductible.
This is a big deal — because it means deductibility isn’t just limited to ongoing fees anymore.
When advice fees can be deductible
In simple terms, fees are more likely to be deductible when they relate to:- Managing an existing investment portfolio
- Advice on shares, managed funds, or investment income
- Ongoing portfolio reviews or investment strategy adjustments
- Upfront advice that directly relates to investing or generating income
When they’re usually not deductible
Fees are generally not deductible if they relate to:- Setting up your overall financial plan (where it’s not tied to income generation)
- Retirement planning
- Superannuation advice (in many cases)
- Personal budgeting or cashflow advice
- Insurance recommendations
Why it’s not always black and white
Most financial advice isn’t just one thing. A single piece of advice might include:- Investment strategy
- Super planning
- Insurance
- Cashflow
This is especially relevant now with upfront fees — because only the investment-related portion may be deductible.
Has this made advice more accessible?
In many cases, yes.With upfront fees potentially being partly deductible, clients may be able to reduce the after-tax cost of getting started with advice — not just the ongoing costs.
That can make it easier for people to engage with advice earlier.
The most important takeaway
Just because something might be deductible doesn’t mean it will be for you.Tax deductibility depends on:
- Your personal situation
- The type of advice you receive
- How the fees are structured and documented
- How much of the advice relates to income-producing investments
Final thought
If you’re paying for financial advice (or thinking about it), it’s worth having a quick conversation with your accountant or adviser about what portion, if any, you can claim.The rules have evolved — especially around upfront fees — so getting this right can make a meaningful difference.
General information only — always seek personal tax advice before making any decisions.