Is financial advice tax deductible?

As we approach the end of financial year, you may be walking through your house and wondering what exactly you can claim. Your new computer? Your lunch from last week, lain forgotten in the veggie drawer? Your dog? 

While some of that may be claimable, it’s very likely that most of it will not be. 

We’re here to give you some good news—if you’ve seen a financial adviser this financial year, your advice fees could be tax deductible. 

You must pay your advice fee out of pocket
​If your advice fees are being paid out of pocket, you may be able to claim them. This does not include advice fees paid through superannuation, investments, or insurances. 

What can be claimed 

• Ongoing advice fees for products that produce income – e.g. investments. 
• Advice fees regarding the appropriateness of the mixture of your income producing investments. 
• Fees for advice on income protection products. 
• Some fees that relate to managing your tax affairs (only when given by a licensed tax professional).  

What can’t be claimed 

• Initial advice fees for products that produce income – e.g. investments. 
• Advice on how to invest additional funds to grow your existing portfolio. 
• Advice on life or total and permanent disability insurance. 
• Budgeting or household expenditure advice.  

Things to note 
Only fees related to gaining or producing income can be claimed. This means that if only a portion of your advice fee covers income producing advice, you will only be able to claim a partial deduction. 

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If you’re unsure whether you can claim your advice fee on your tax return, you’re welcome to consult the ATO website for a detailed breakdown of what is claimable. 

Alternatively, you can consult with your financial adviser or tax accountant on what, and how much, you’ll be able to claim.