GST reduction on adviser fees

3 minutes  
Date: 05 February 2019
For adviser use only.

Did you know that we're able to claim reduced input tax credits (RITC) on adviser fees paid by clients in all of our products, and we pass this reduction directly on to your client. 

Passing on the reduced input tax credit on advice fees to clients has been a long standing benefit provided by Netwealth.

The good news is that we have recently been able to increase the benefit from 55% to 75% of the GST otherwise payable  (expect for insurance-related advice fees, these fees will still attract a 55% discount on GST payable).  

How it works: 

By claiming the reduced input tax credit, and passing the benefit back to the client, instead of paying 10% GST on adviser fees, the amount paid by clients is 2.5%. 

For example, where a client agrees a fee of $110 (including GST) with their adviser, the adviser will receive the full $110 (including GST), however the client will only be charged $102.50 via their Netwealth account.

Advisers receive the full adviser fee including GST and this is view-able via their remuneration statement.

How to start receiving your benefit: 

You don’t need to do anything for the reduced GST cost to apply to your clients, however you might wish to let them know that their adviser fee might be slightly reduced.

RITC will be claimed for all IDPS and Super clients.


To learn more, contact us.