Dover’s Adviser Fees
Dover prides itself on affordable adviser fees, with no hidden catches.
Dover’s fees are just $17,500 plus GST per year for the first adviser, and $8,750 plus GST per year for the second and subsequent adviser in the same practice, payable in 12 equal monthly instalments.
Dover’s fees are payable on 365 days credit. For example, the fee note for December 2017 is not payable until December 2018, and the fee note for January 2018 is not payable until January 2019, and so on.
Income tax and GST advantages to the adviser
Dover’s fees are incurred by the adviser in the year the fee note is raised, even though they are not paid until a year later. This means they are tax deductible a year before they are paid.
This is a great advantage to the adviser.
For example, an adviser joining Dover on 1 July 2017 may claim a deduction for the full cost of $17,500 incurred in the year ending 30 June 2018 even though no payment is made in that year (ie not payment is due until 1 July 2018).
This creates a significant tax benefit for the adviser, particularly where the adviser previously paid one year in advance. For example, an adviser previously paying say $25,000 a year plus $6,500 PI insurance who switches to Dover on 1 July 2018 will enjoy a $42,500 plus $4,250 GST saving, plus a tax benefit, in the first 12 months of practice.
This is a significant cash flow saving, that contributes to increased profitability and long term practice value.
Advisers on the accruals GST payment program may be able to claim a GST credit before the GST is paid.
Dover is assessed on income and pays GST in the year the tax invoice is raised. That is, Dover pays income tax and GST a year before the adviser pays Dover. So advisers can be assured there is nothing improper in these arrangements: the adviser’s tax advantage is Dover’s tax disadvantage.
These tax advantages are intentional, and are another way Dover helps its advisers. Dover uses its financial strength and solvency to create cash flow advantages for its advisers.
Dover’s fees are all inclusive
Dover’s fees include professional indemnity insurance plus all the benefits provided under the Dover Associate Program.
There are no hidden fees.
No shelf fees or institutional payments
Dover does not receive income from anyone other than advisers (other than small consulting fees and interest income).
Dover is not paid shelf fees, “training day subsidies” or similar amounts by institutions.
Dover does not have in-house products.
This is to avoid conflicts of interest that could impact the best interests duty, the appropriateness of your advice and your duty to prioritize your clients’ interests over all other interests.
Fees for 2018?
Dover’s fees are fixed until at least 1 January 2019.
If you have any questions about Dover’s fees please e-mail Terry McMaster on firstname.lastname@example.org.