Dover prides itself on affordable adviser fees, with no hidden catches.
Dover charges each adviser just $20,000* per year, plus GST. The annual fee is paid in 12 easy monthly instalments, on electronic transfer, making payment as easy as possible. The annual fee includes professional indemnity insurance.
For firms with two or more advisers, each additional adviser pays a discounted rate of $12,000* plus GST per annum paid monthly and enjoys the full features of Dover’s offer. Contact one of our adviser managers to find out more.
*Effective 1 December 2017
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.
From 1 May 2015 all Dover advisers and new advisers are enjoying a permanent twelve month interest free payment holiday. The May 2018 tax invoice is not payable until May 2019, the June 2018 tax invoice is not payable until June 2019, and so on in perpetuity. This allows all advisers to use their working capital to grow their businesses. The monthly fee notes are incurred, so they are still deductible for tax purposes even though they will not be paid until a later tax year. Advisers on the GST accruals method can claim a GST credit even though the invoice is not paid (but we recommend you check with your tax adviser).
This 12 month interest free period is another way Dover helps its advisers create great financial planning practices.
12 months interest free payment terms is a feature of Dover’s fee structures. It’s just another way Dover encourages its advisers to develop profitable and valuable practices.
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 2018 may claim a deduction for the full cost of $20,000 incurred in the year ending 30 June 2019 even though no payment is made in that year (ie no payment is due until 1 July 2019).
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 $44,000 plus $4,000 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.
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.
Dover advisers receive all commissions
Dover does not charge marketing subsidies, commissions or any other costs. Dover representatives keeps 100% of all commissions: these are collected in the Dover commission account and remitted to advisers fortnightly, using the Revex commission tracking system.
Dover does not receive any other benefits from any financial institutions. Dover has no relationships with financial institutions or other institutions that may influence its relationship with its advisers.