SOA Fee Impact Calculator

How Fees Affect Your Investment Returns

When you receive financial advice, the fees you pay come in two main forms: ongoing advice fees (charged by your adviser for ongoing service) and product fees (charged by the investment platform, super fund, or managed fund). While each fee may seem small individually — often 0.5% to 1.5% — their compounding effect over time can significantly reduce your final investment balance.

For example, a client with a $200,000 initial balance, contributing $10,000 per year, earning 7% before fees, and paying 1.5% in total ongoing fees, would lose over $200,000 to fees over 25 years compared to a fee-free scenario. That is the opportunity cost of fees — money that could have grown through compounding but was instead paid to the adviser and product provider.

Understanding the Fee Breakdown in Your SOA

When reviewing your SOA, look for three categories of fees: the ongoing advice fee (what your adviser charges for ongoing service and annual reviews), the product fees (administration, investment management, and performance fees charged by the super fund, managed fund, or platform), and any one-off establishment or implementation fees. Each of these fees reduces your investment returns, and their combined effect is what this calculator models.

Under the Corporations Act and RG 175, all fees must be disclosed in dollar amounts where possible. If your SOA only shows fees as percentages, ask your adviser to convert them to dollar figures based on your expected balance. Fee Disclosure Statements received annually should be compared against the original SOA projections. Any significant variation should be raised with your adviser, as it may indicate a compliance issue worth investigating.

Where to Find Fee Information in Your SOA

Your Statement of Advice should include a section on fees and costs, typically titled "Fees and Costs," "Summary of Fees," or "Financial Services Fees." This section must disclose the ongoing advice fee (usually expressed as a percentage of funds under management or a flat dollar amount), any establishment or upfront fees, and the indirect costs of the recommended products, including platform fees, administration fees, and investment management fees.

Under FOFA and RG 175, your adviser is required to provide you with a Fee Disclosure Statement (FDS) each year that sets out the ongoing fees you have paid and the services you were entitled to receive. If the fees disclosed in your FDS do not match what was agreed in your SOA, that may be a compliance concern. You can use this calculator with the figures from your SOA and your FDS to compare what you were told at the start versus what you are actually paying.

Frequently Asked Questions

What is a typical ongoing advice fee in Australia?
Ongoing advice fees typically range from 0.5% to 1.5% of funds under management per year. Some advisers charge a flat dollar fee (e.g., $2,000–$5,000 per year). Your SOA must clearly state which structure applies and what services you receive in return.

Are product fees separate from advice fees?
Yes. Product fees are charged by the investment platform, super fund, or managed fund for managing your investments. These include administration fees, investment management fees, and performance fees. They are separate from the advice fee your adviser charges.

Does this calculator guarantee my actual investment outcome?
No. This calculator provides an educational estimate based on the inputs you provide. Actual investment returns, fees, and tax outcomes will vary. It does not account for tax, inflation, changes in fee structures, or investment performance variability.

What should I do if I think my fees are too high?
Start by comparing the fees in your SOA against your annual Fee Disclosure Statement. If there is a discrepancy or you believe the fees are unreasonable, raise it with your adviser first. You can escalate to the licensee's internal dispute resolution process, and if unresolved, to AFCA. You can also upload your SOA to AdviserCheck for an independent compliance assessment.

What Financial Advice Costs in Australia

Understanding typical advice fees helps you evaluate whether your adviser's charges are reasonable. Recent industry data provides clear benchmarks:

Fee Type	Typical Amount	Trend
Annual ongoing advice fee	$4,700 – $4,800 (median)	Up 67% over 5 years, but growth slowing to ~4%
Initial SOA / plan fee	$2,000 – $3,500	Varies by complexity
Hourly rate	$300 – $600 per hour	Higher for specialist advice
Funds under advice (FUA) fee	0.5% – 1.1% of balance	Average FUA: $758,000
Top 20% profitable practices	Nearly double median	Higher fees = leaner cost-to-serve models

Despite 68% of Australians seeing the benefit of professional financial advice, only 6% are willing to pay more than $2,500 for it. This gap between perceived value and willingness to pay is a key reason why regulatory reforms (DBFO, QAR) aim to reduce the cost of advice delivery.

If your adviser's fees are significantly above these benchmarks, ask for a clear breakdown of what you're receiving for the premium. Your SOA must disclose all fees and charges under FOFA requirements.

Sources: Adviser Ratings Australian Financial Advice Landscape 2025, Vanguard Adviser Best Practice Guide 2025, Investment Trends Adviser Business Model Report 2025.