05 – The future of commissions? 

No one really knows the future of commissions beyond 2018 in Australia. What we can say is that it is highly unlikely that commissions on investment and super products will be re-established. And life insurance commissions will have reduced to the 60% upfront/20% ongoing model by 1 July 2018.

Will they go lower? Or be done away with altogether? No one really knows.   There is plenty of shrill commentary, but nothing concrete. 

One thing that is certain is that fee for service is the preferred method of remuneration for both politicians and regulators. It would take a dramatic about-face for commissions to be increased in any way. A lot of seriously negative things have been said about commissions in the past. It would be a brave (or new) politician who advocated for their reintroduction. 

That is why all financial planning practices should be considering fees for service. Even if you are going to continue to use commissions, the only way to increase your revenue base via commissions will be to see more clients: commission levels are highly unlikely to rise. Growing your business means fees for service. 

The Dover Group