Article

Is financial advice tax deductible? A guide to what you can and can’t claim.

15 January 2026 Read time: 4 min

Author Charlotte Whelan

Expert Reviewer Anne Graham, CPA, CFP®

So you’re thinking it might be time to get some financial advice. You’ve googled some financial planners, done some due diligence and now you’re wondering how much it’s going to cost and is financial advice tax deductible. You’ve heard that some of the fees can be deductible but you’re not sure how it all works. What’s deductible? What’s not? How do the rules work?

Well, according to the ATO’s latest guidance, deductions only apply when financial advice directly helps you earn assessable income or manage your tax affairs.

So, there will be circumstances where your financial advice fees will and won’t be deductible. Let’s dive in.

Is financial advice tax deductible?

The short answer is yes, sometimes.

Whether your advice is deductible all comes down to:

What the advice was for
How you paid for it
And why you sought advice in the first place.

What’s changed (and why it matters)

A tax determination made by the ATO in late 2024, signalled a shift in how financial advice fees are treated in Australia.

The ATO now recognises financial advisers as Qualified Tax Relevant Providers (QTRPs). This means that upfront financial advice fees that relate specifically to tax advice may now be deductible – something that wasn’t possible under guidance that was nearly 30 years old.

While the ATO stopped short of making all upfront financial advice fees deductible, this change was widely seen as an improvement at the time and a win for those seeking advice.

When financial advice is tax deductible.

You can generally claim a deduction if financial advice fees relate to earning or managing your assessable income, for example, advice related to:

Existing income-producing investments.

This includes advice related to managing or reviewing investments that are already generating income. This could include things like advice on shares, rental properties or your portfolio. The key thing here is whether the money has been spent to produce further income.

Managing your tax affairs.

Financial advice fees may be deductible when the advice relates directly to tax matters and is provided by a registered tax agent or a financial adviser registered with ASIC or the Tax Practitioners Board. This could include things like advice on the tax implications of investments or structuring investments for tax efficiency. The key thing here is that the advice is directly related to your tax affairs.

Income protection insurance.

Advice relating to income protection insurance can be deductible, as these policies protect your ability to earn income. This does not apply to non-deductible insurance types like life or trauma insurance.

Here is when financial advice is not tax deductible.

You generally can’t claim a deduction for financial advice fees relating to:

New or proposed investments.

If the advice is about setting up or recommending investments that haven’t yet started producing income, the ATO treats this as non-deductible.

Initial advice from a new adviser.

The ATO treats this as a capital expense, not an income-producing cost, so it’s therefore generally considered non-deductable. It’s important to note that in circumstances where some of the initial advice given is tax-related, that portion is deductible.

General or personal financial advice.

This includes advice relating to personal financial planning, household budgeting, cashflow management, lifestyle advice, life or trauma insurance, estate planning, or establishing a self-managed super fund.

Good record-keeping matters.

To claim a deduction for financial advice fees, you’ll need:

An itemised invoice showing the services provided
A clear split between deductible and non-deductible components
Evidence the advice relates to income-producing investments or tax obligations

Good records don’t just support your claim – they make tax time far easier.

Confused what you can claim? Still asking yourself, is financial advice tax deductible?

A quick check before you claim can save headaches later. You can start by asking yourself a few simple questions:

Did you pay the fee personally (not via your super fund)?
Was the advice about income-producing investments or tax affairs?
Is your invoice properly itemised and broken down?
Was the fee for ongoing or review advice, not initial setup for general planning?

If you answered yes to the above, there is a good chance that your advice fees are deductible. That said, the safest approach is always to check with your accountant or adviser before lodging your return.

So given the cost, is financial advice worth it?

Getting advice does require financial commitment in terms of upfront and ongoing fees. And while some costs are tax deductible, it’s fair to wonder is getting a financial plan actually worth it?

Financial advisers operate in a highly regulated environment and meeting the strict education, compliance, licensing and documentation standards takes time, expertise and care.

So while financial advice still comes at a cost to you, it’s important to consider the big picture. People who receive advice tend to be better off over time – not just from a financial sense, but advice often results in better clarity, confidence and decision-making.

It’s also worth mentioning that the cost of not getting advice is often unseen. While choosing not to seek advice may have no upfront cost, it can mean missing opportunities you didn’t even know existed — opportunities to structure things better or make more informed decisions.

In other words, the value of advice from a good adviser often outweighs the cost, even when it isn’t fully tax deductible.

Great advice is about making informed decisions that support your financial future and get you closer to the life you’ve always dreamt of.

Got more questions on whether financial advice is tax deductible?

Get in touch with us.

We’re here to help.