Advisers Warming to Charging Fees for Risk Advice

The results of our latest poll suggest what was once considered impossible and unachievable – namely charging fees for risk advice – is becoming more of a possibility for a growing proportion of the adviser community.

As we go to press, 44% of those voting in our latest poll agree with the contention that charging a fee for risk advice is more achievable following a 2024 ATO determination which effectively provides a green light for clients to obtain a tax deduction for at least a proportion of the risk advice they receive (see: Significant Portion of Advice Fees Could Be Tax Deductible). Almost four in ten advisers (39%) disagree, with the rest unsure at the moment.

…this [ruling] can apply to a client’s ability to claim at least a partial tax deduction against the cost of the upfront life insurance advice they receive

The basis for this conversation in Riskinfo stems from the highly engaged presentation delivered by AIA Australia’s Ben Martin at Riskinfocus 25, at which he detailed the ATO’s pivotal ruling last year, and how this can apply to a client’s ability to claim at least a partial tax deduction against the cost of the upfront life insurance advice they receive (see: Tax Relief for Risk Advice).

This interim poll result appears to reflect a willingness among a growing number of advisers to explore supplementary remuneration options when it comes to delivering life insurance advice within a regulatory environment which mandates the level of commission income they are legally allowed to receive.

There’s much more we can discuss about this issue, but as usual, we’ll hand the conversation back to you and welcome your further thoughts as our poll remains open for another week…