Paying for Financial Advice from Your Superannuation: DBFO Reforms and What Australians Must Know in 2026

For many Australians, the cost of professional financial advice has been a significant barrier to getting the help they need. The Delivering Better Financial Outcomes (DBFO) reforms, which have been progressively implemented since 2024, are changing this landscape in a meaningful way. One of the most significant changes is the expanded ability for Australians to pay for personal financial advice directly from their superannuation balance — a reform that could make quality advice accessible to millions more people.

Understanding the DBFO Reforms and Advice Fee Changes

The DBFO reforms represent the most significant overhaul of Australia's financial advice regulatory framework since the Future of Financial Advice (FOFA) reforms of 2013. Developed in response to the Quality of Advice Review led by Michelle Levy, the reforms aim to reduce the cost and complexity of providing financial advice while maintaining strong consumer protections.

A central element of the reforms is the expansion of circumstances in which superannuation funds can deduct advice fees directly from a member's account. Previously, the rules were highly restrictive — funds could only deduct fees for advice that related specifically to the member's interest in that fund. The DBFO reforms broaden this to allow deductions for personal advice on a wider range of topics, provided the advice is genuinely in the member's interest.

This change is significant because it means Australians can now access comprehensive financial planning — covering retirement income strategies, investment allocation, insurance, and estate planning — and pay for it from their superannuation rather than out-of-pocket. For many people, particularly those approaching retirement with substantial super balances but limited liquid savings, this removes a genuine financial barrier to advice.

What Advice Can Be Paid for from Superannuation?

The expanded rules do not create a blank cheque. There are important boundaries on what types of advice can be funded from a superannuation account, and both financial planners and their clients need to understand these limits.

• Personal advice on superannuation matters — Advice directly related to the member's superannuation, including contribution strategies, investment options within the fund, insurance held in super, and retirement income streams, has always been deductible. This remains the core use case.
• Broader personal financial advice — Under the DBFO reforms, funds can now deduct fees for personal advice that goes beyond the fund itself, provided the advice is in the member's best interests and the fund's trustee is satisfied the deduction is appropriate.
• Ongoing advice arrangements — Fees for ongoing advice services can be deducted from super, subject to the member providing annual consent under the reformed ongoing fee arrangement rules.
• Advice that cannot be funded from super — Advice that is purely about non-superannuation assets — such as investment property, shares held outside super, or business interests — generally cannot be funded from a superannuation account. The advice must have a genuine connection to the member's superannuation interests.

Key Considerations for Australians Thinking About This Option

While the ability to pay for advice from super is a welcome development, it is not the right choice for everyone. Several important factors should be weighed carefully.

Impact on Retirement Savings

Superannuation is a long-term savings vehicle, and every dollar withdrawn — including for advice fees — reduces the compounding growth available for retirement. For younger Australians with decades until retirement, paying advice fees from super may have a more significant long-term impact than for those close to retirement. A financial planner can model the net benefit of advice against the cost of funding it from super.

Tax Deductibility Outside Super

Following the ATO's Taxation Determination TD 2024/7, some financial advice fees paid outside of superannuation may be tax-deductible — specifically, fees for advice related to managing existing income-producing investments or tax planning. If you are in a high marginal tax bracket, the after-tax cost of paying advice fees directly may be lower than the cost of drawing them from super. Your financial planner and accountant should work together to determine the most tax-effective payment method.

Fund Trustee Approval

Not all superannuation funds will automatically approve deductions for broader personal advice fees. The fund's trustee must be satisfied that the deduction is appropriate and in the member's interest. Some funds may have more restrictive policies than the law requires. It is important to confirm your fund's position before assuming fees can be deducted.

Annual Consent Requirements

Under the DBFO reforms, ongoing fee arrangements require annual renewal of client consent. Your financial planner must provide you with a fee disclosure statement and obtain your written consent each year before deducting ongoing advice fees from your superannuation. This is a consumer protection measure designed to ensure you remain aware of what you are paying and why.

Common Mistakes to Avoid

As the new rules bed down, several common misunderstandings are emerging that Australians should be aware of.

• Assuming all advice fees can be paid from super — The rules have expanded but not eliminated restrictions. Advice that is purely about non-super assets cannot be funded from your account. Always confirm with your financial planner and fund trustee before proceeding.
• Ignoring the long-term cost to retirement savings — Paying advice fees from super reduces your balance and the compounding returns on that balance. The advice must deliver genuine value that outweighs this cost.
• Failing to compare the tax outcomes — For some Australians, paying advice fees directly and claiming a tax deduction may be more cost-effective than drawing from super. Do not assume one approach is always better.
• Not reviewing ongoing fee arrangements annually — The annual consent requirement is not just a formality. Use it as an opportunity to review whether your ongoing advice arrangement continues to deliver value.
• Choosing a financial planner based on price alone — The ability to pay from super makes advice more accessible, but the quality of advice matters enormously. Ensure your planner is appropriately qualified and registered with ASIC.

Australian Regulatory Context

The DBFO reforms are being implemented in tranches, and the regulatory landscape continues to evolve. Key regulatory touchpoints include the following.

ASIC registration and professional standards — All financial planners providing personal advice must be registered on the ASIC Financial Advisers Register. As of 1 January 2026, all registered advisers must meet mandatory education and professional standards, including holding an approved degree or qualifying through the experienced provider pathway (minimum 10 years' experience with a clean disciplinary record).

Best interests duty — Financial planners remain subject to the best interests duty under the Corporations Act 2001. The DBFO reforms have modernised the safe harbour provisions, but the core obligation to act in the client's best interests is unchanged. Any advice to pay fees from superannuation must genuinely serve the client's interests.

Superannuation fund trustee obligations — Trustees of APRA-regulated superannuation funds have their own obligations under the Superannuation Industry (Supervision) Act 1993 (SIS Act) and APRA's prudential standards. Trustees must satisfy themselves that advice fee deductions are appropriate and in members' interests.

Tax treatment — Where advice fees are deducted from a superannuation account, the tax deduction (if any) is claimed by the fund, not the individual member. This is an important distinction from fees paid directly, where the individual may be able to claim a deduction in their personal tax return.

AFCA complaints — If you have a dispute with your financial planner or superannuation fund regarding advice fees, the Australian Financial Complaints Authority (AFCA) provides free external dispute resolution. AFCA can consider complaints about advice quality, fee disclosure, and the appropriateness of deductions from superannuation.

Questions to Ask Your Financial Planner

Before agreeing to have advice fees deducted from your superannuation, use this checklist to ensure you are making an informed decision.

1. Is the advice you are providing genuinely connected to my superannuation interests, or does it relate primarily to non-super assets?
2. Will my superannuation fund approve the deduction of fees for this advice?
3. What is the long-term impact on my retirement savings of paying advice fees from super versus paying directly?
4. Could I claim a tax deduction for advice fees if I paid them directly, and would that be more cost-effective?
5. What is included in the ongoing fee arrangement, and what will I receive each year in exchange for the fee?
6. How will you obtain my annual consent for ongoing fees, and what happens if I do not renew?
7. Are you registered on the ASIC Financial Advisers Register, and what are your qualifications?
8. If I am unhappy with the advice or the fees, how do I make a complaint?

How MyMoney® Can Help

The DBFO reforms represent a genuine opportunity for more Australians to access the financial planning support they need. But navigating the new rules — understanding what can be paid from super, how to structure fee arrangements, and how to choose a qualified planner — requires expert guidance.

MyMoney® connects Australians with qualified, ASIC-registered financial planners who understand the DBFO reforms and can help you determine the most appropriate way to fund your advice. Whether you are approaching retirement, managing a complex financial situation, or simply looking to make the most of your superannuation, the right financial planner can make a lasting difference.

Post a Brief on MyMoney® to receive tailored proposals from financial planners who specialise in superannuation and retirement planning, or Browse Financial Planners to find a qualified adviser near you today.