Delivering Better Financial Outcomes Reforms: What Australians Must Know About Financial Advice in 2026

Australia's financial advice industry is undergoing its most significant transformation in a generation. The Delivering Better Financial Outcomes (DBFO) reforms — flowing from the Quality of Advice Review — are reshaping how financial planners deliver advice, what documentation clients receive, and how much professional guidance costs. For Australians navigating retirement planning, superannuation, and wealth management in 2026, understanding these changes is essential to getting the most from a financial planner relationship.

Understanding the DBFO Reforms

The Delivering Better Financial Outcomes reforms are a package of legislative and regulatory changes designed to address Australia's growing "advice gap." Approximately 1.5 million Australians who need financial advice cannot access it — primarily because of cost and complexity. The reforms aim to make professional advice more affordable and accessible without compromising consumer protections.

Key changes already in effect or being progressively implemented include the rationalisation of the Statement of Advice (SOA), streamlined fee disclosure requirements, and new pathways for "scaled" or limited-scope advice. The SOA — historically a document that could run to more than 100 pages — is being redesigned to be concise, readable, and genuinely useful to clients rather than a compliance artefact.

Superannuation funds are also being empowered to provide more guidance to members, particularly around retirement income decisions, without triggering the full personal advice regime. This creates a layered advice ecosystem where Australians can access basic guidance from their fund and comprehensive personal advice from a licensed financial planner.

What the Reforms Mean for Consumers

For Australians seeking financial advice in 2026, the DBFO reforms have several practical implications.

More Accessible Scaled Advice

Scaled or limited-scope advice allows a financial planner to address a specific question — such as whether to make a concessional superannuation contribution or how to structure an account-based pension drawdown — without preparing a comprehensive financial plan. This targeted approach can significantly reduce the cost of advice for straightforward decisions.

Clearer, Shorter Documentation

The reformed SOA framework prioritises clarity over volume. Clients should expect shorter, more readable advice documents that clearly explain the recommendation, the reasoning behind it, and any fees or conflicts of interest. If your adviser is still producing 80-page SOAs for routine advice, it may be worth asking whether their practice has adapted to the new standards.

Ongoing Fee Transparency

Ongoing fee arrangements — where clients pay an annual fee for continued advice services — are subject to streamlined consent requirements. Advisers must obtain annual renewal of ongoing fee arrangements, and clients have the right to cancel at any time. Fee disclosure is now more straightforward, making it easier to assess whether you are receiving value for money.

Key Considerations When Choosing a Financial Planner

The DBFO reforms have not changed the fundamental criteria for selecting a qualified financial planner. These remain the most important factors to evaluate.

• ASIC Financial Advisers Register — All financial planners providing personal advice must be registered on the ASIC Financial Advisers Register. Check your adviser's registration, qualifications, and any disciplinary history before engaging them.
• Relevant qualifications — Since 1 January 2026, all financial advisers must hold a relevant bachelor's degree or equivalent, have passed the Financial Adviser Exam, and complete 40 hours of continuing professional development (CPD) annually. Verify these credentials directly.
• Licensee and authorisation — Financial planners must be authorised by an Australian Financial Services (AFS) licensee. Understand who holds the licence and what products and strategies the adviser is authorised to recommend.
• Fee structure transparency — Ask for a clear breakdown of all fees: initial advice fees, ongoing fees, and any product commissions (which are banned for most personal advice but still permitted in some insurance contexts). Understand exactly what you will pay and what services you will receive.
• Specialisation — Financial planning is a broad field. Look for a planner with demonstrated expertise in your specific situation — whether that is pre-retirement planning, SMSF strategy, aged care, or estate planning.
• Independence — Some planners are aligned with product manufacturers or dealer groups that may influence their recommendations. Ask whether your planner is truly independent or whether they have institutional relationships that could affect the advice you receive.

Common Mistakes Australians Make When Seeking Financial Advice

Even with the DBFO reforms improving the advice landscape, Australians continue to make avoidable mistakes when engaging financial planners.

• Not checking the ASIC register — Engaging an unregistered or unlicensed person to provide financial advice is both risky and potentially illegal. Always verify registration before sharing personal financial information.
• Confusing general information with personal advice — Content on websites, social media, and podcasts is typically general information, not personal advice. It does not account for your individual circumstances and should not be the basis for significant financial decisions.
• Focusing solely on investment returns — A good financial planner does far more than select investments. Tax planning, insurance, estate planning, and Centrelink optimisation can collectively deliver far greater value than chasing an extra percentage point of return.
• Delaying advice until retirement — The most impactful financial planning decisions are often made in the decade before retirement. Waiting until you have already retired can significantly limit your options for superannuation contributions, tax structuring, and pension phase optimisation.
• Not reviewing advice regularly — Financial plans should be reviewed at least every two to three years, or whenever your circumstances change significantly. A plan prepared five years ago may no longer reflect current legislation, your financial position, or your goals.

Australian Regulatory Context

Financial planners in Australia operate under one of the most comprehensive regulatory frameworks in the world. The key regulators and legislative instruments are as follows.

The Australian Securities and Investments Commission (ASIC) is the primary regulator for financial advice. ASIC administers the Corporations Act 2001, which governs the licensing of financial advisers, the Best Interests Duty, and the SOA requirements. ASIC's Financial Advisers Register is the authoritative source for verifying an adviser's credentials and authorisations.

The Financial Adviser Standards and Ethics Authority (FASEA) standards — now administered by ASIC and Treasury — set the education, examination, and CPD requirements for financial advisers. These standards were substantially raised following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

The Australian Financial Complaints Authority (AFCA) provides free external dispute resolution for complaints about financial advisers and licensees. If you believe you have received poor advice or been treated unfairly, AFCA is the appropriate first point of contact.

The Australian Prudential Regulation Authority (APRA) oversees superannuation funds and their compliance with the Retirement Income Covenant, which requires funds to have a documented strategy for helping members achieve sustainable retirement income. This covenant directly influences the guidance your super fund can provide alongside personal advice from a financial planner.

Questions to Ask a Financial Planner Before Engaging

Use this checklist when evaluating a financial planner for the first time.

1. Are you registered on the ASIC Financial Advisers Register, and can you provide your registration number?
2. What are your qualifications, and have you passed the Financial Adviser Exam?
3. Who is your AFS licensee, and what products and strategies are you authorised to advise on?
4. Are you independent, or do you have institutional relationships that may influence your recommendations?
5. What is your fee structure, and will you provide a written fee disclosure before I commit to anything?
6. Do you offer scaled advice for specific questions, or only comprehensive financial plans?
7. How often will you review my plan, and what triggers an unscheduled review?
8. What is your experience with clients in my situation — pre-retirement, SMSF, aged care, or other relevant areas?

How MyMoney® Can Help

Finding a financial planner who is qualified, transparent, and genuinely suited to your needs has never been more important — or more achievable. MyMoney® connects Australians with licensed financial planners across a wide range of specialisations, from retirement income strategy and superannuation to estate planning and aged care financial advice.

You can post a brief on the MyMoney® platform describing your financial situation and goals, and receive tailored proposals from financial planners who have the expertise and availability to help you. This competitive process helps you compare credentials, approaches, and fees before making a commitment.

Alternatively, browse financial planners on our marketplace to explore profiles, specialisations, and client reviews at your own pace. Whether you are approaching retirement, managing a complex investment portfolio, or simply looking for a trusted adviser to help you make better financial decisions, MyMoney® gives you the tools to find the right professional with confidence.

The DBFO reforms are making quality financial advice more accessible than ever. Take advantage of the improved landscape by engaging a qualified financial planner who can help you navigate Australia's evolving superannuation and tax environment in 2026 and beyond.