24 July 2026
5 min read
Summary
We've recently updated our calculation method for dollar-based adviser service fees (ASFs). ASFs consented to by clients from 23 May 2026 onwards will move to the updated pro-rata calculation, which means payment amounts and timing may differ from what you've seen previously.
Importantly, the overall ASF entitlements remain in line with the client’s consent. However, during the transitional period, you may notice individual payments vary where a fee starts, ends or changes part way through the month.
The pro-rata method will not affect ASF arrangements across 12 full calendar months, as no partial first and last month arises.
What has changed
Previously, dollar-based ASFs were paid based on the active fee amount on the last day of the month, regardless of how many days that fee was active in the month.
For consents signed from 23 May 2026 onwards, dollar-based ASFs will now be calculated on a pro-rata basis and paid only for active days in the month.
Note: ASFs continue to be paid in arrears. For example, the fee for advice services provided in August is paid in September.
We also introduced the ability to nominate a start date for ongoing fee arrangements.
Why we made the change
CFS has now introduced a pro-rata calculation for dollar-based ASFs to ensure fees are applied more consistently, with the amount charged reflecting the actual number of days within a calendar month a fee arrangement is active on a member's account.
The change was implemented to:
Ensure the timing of adviser fee payments more closely reflect the underlying client arrangement.
Strengthen alignment between fees charged and timing of agreed services.
Full monthly fee paid for first month even if fee arrangement only active for part of the month.
To offset upfront payment in first month, no fee payment made for partial final month.
Fees accrue and are paid only for active days in the month.
Pro-rata payments made if fee arrangement is active for partial first and last months.
Total fee paid is unchanged.
Previous full monthly fee for partial first month now paid proportionately across partial first and last month payments.
How fees are charged under each arrangement
Both arrangements result in a total of $1,200 over 12 months. The difference is how partial months are handled.
Existing fee arrangement
Consented before 23 May 2026.
Fee started 25 March 2025.
First month
25 March - 31 March
(partial month)
$100.00
Full months with active fee
11 months x $100
$1,100.00
Last month
1 March - 24 March
(partial month)
$0.00
Total over 12 months
$1,200.00
New fee arrangement
Consented after 23 May 2026.
Fee started 25 May 2026.
First month pro-rata
25 May - 31 May
(7 days of 31)
$22.58
Full months with active fee
11 months x $100
$1,100.00
Last month
1 May - 24 May
(24 days of 31)
$77.42
Total over 12 months
$1,200.00
Adviser Service Fees (post-23 May) - Pro-rata scenarios
Fee calculation commences from the latter of:
- The fee start date (if provided)
- The notification date
- The account funding date
Assuming the account is funded:
- If a fee start date is provided, fees will start accruing from the nominated fee start date. The fee start date can be up to 31 days from the date the client signs the consent form
- If a fee start date is not provided, or is in the past, fees will start accruing from the day we receive a validly completed ASF consent form (notification date)
- Fees accrued in the current month are paid in arrears at the beginning of the next month
The below scenarios demonstrate how prorated fees are calculated for partial months.
New arrangements of $100 per month with a nominated fee start date
- Sign date: 6 August 2026
- Notification date (form is submitted): 8 August 2026
- Fee start date: 1 September 2026
- Reference date: 1 September 2027
For a new ongoing fee arrangement, the fee start date is a request for us to commence the fee on this nominated date.
Monthly pro-rata fee calculation = (Active days in month/Total days in month) x Monthly fee amount.
Payment for September services = (30/30) x $100 = $100. This amount will be paid at the start of October.
Applicable only to existing arrangements. Partial monthly payments will only take place in the first renewal post 23 May 2026.
Renewal of ongoing fee arrangements of $100 per month with a nominated fee start date
- Previous reference/renewal date: 15 September 2026
- Sign date: 5 September 2026
- Notification date (form is submitted): 5 September 2026
- Renewed fee start date: 15 September 2026
- Next reference/renewal date: 15 September 2027
Under the renewed arrangement, fees are calculated on a pro-rata basis from the renewed fee start date.
Monthly pro-rata fee calculation = (Active days in month/Total days in month) x Monthly fee amount.
Payment for September services = (16/30) x $100 = $53.33. Payment for the period 15 – 30 September will be paid at the start of October.
Frequently asked questions
Only ongoing and fixed term fees applying on a dollar-basis are affected. One-off fees aren’t affected.
Monthly pro-rata payment = (active days in month/total days in month) x (monthly fee amount)
Example: $100/month fee, active from 10 August. Payment for August services = (22/31) x 100 = $70.97. This amount will be paid at the start of September.
For consents signed before 23 May 2026, the old non-pro-rata calculation applied, meaning the adviser would receive a full monthly payment for a partial first month and as a result, no payment for the partial final month. For consents signed after 23 May 2026, the new pro-rata calculation applies so the fee is calculated based only on the active days until the end of the month.
Importantly, the total agreed advice fee over the arrangement is not intended to change, however the timing of payments may differ under the updated calculation.
For percentage-based fees, pro-rata will apply to all account closure events from 23 May 2026.
For dollar-based fees:
Consent signed before 23 May 2026 – Under the non-pro-rata calculation, a full payment was received in a partial first month with no payment in the final partial month. To offset upfront payment in the first month, no fee payment is made for the partial final month.
Consent signed after 23 May 2026 – Under the updated pro-rata calculation, fees are accrued and paid for active days in the current month. Therefore, the adviser will receive a pro-rata final payment for these events.
This is determined by whether your client consented to the existing arrangement before or after 23 May 2026:
For arrangements where the client consented before 23 May 2026, the non-pro-rata calculation will apply where first partial month is paid in full and no fee is paid in the final month.
For new or renewed arrangements where the client consented after 23 May 2026, the new pro-rata calculation will apply where the first and final partial month payments are pro-rated.
Yes. For internal transfers, the ASF pro-rata transaction will be processed before the internal transfer. This means the internal transfer will occur one business day later than it would previously. Please note, the final account balance transferred may be lower than expected due to the pro-rata fee deduction.
If a pro-rata fee is not required to apply upon account closure, please include this instruction as part of your client’s redemption/rollover request.
There is no change to the processing of full account closures (excluding internal transfers). The ASF pro-rata transaction will be processed on the same day as the account closure transaction. Please note, the final redemption amount may be lower than expected due to the pro-rata fee deduction.
If a pro-rata fee is not required to apply upon account closure, please include this instruction as part of your client’s redemption/rollover request.
The adviser and the client can agree a future Fee start Date when setting up, renewing or varying an ongoing adviser service fee arrangement. Nominating a Fee start date for ongoing fee arrangements is optional and can be a maximum of 31* days after the client’s consent date.
For renewals, the Fee start date must also be within the renewal period. For variations, the Fee start date cannot be in the final month of the existing arrangement.
* In the coming months, you’ll be able to nominate a future start date up to 60 days from when your client signs.
Yes, noting there are slight differences to the Start Date for ongoing arrangements. For fixed term arrangements, nominating a Start Date is mandatory and can be a maximum of 120 days after your client’s consent date.
The Fee start date, if provided, is regarded as the day the fee arrangement commences. The Reference Date determines the next renewal window for an ongoing fee arrangement.
When setting up a new ongoing fee arrangement:
If you nominate a Fee start date, that is regarded as the date the new ongoing fee arrangement will start and therefore the Reference Date can be up to 12 months from that Fee start date.
If no Fee start date is provided, the Reference Date can be a maximum of 12 months from the client’s consent/signature date.
When renewing an existing ongoing fee arrangement:
The next Reference date can be a maximum of 12 months from the previous Reference date, regardless of whether a Fee start date is provided for the renewal
If you nominate a Fee start date, the renewed fee arrangement will commence from that day. Otherwise, the fee will commence from the date CFS receives a valid fee consent form.
The fee will commence from the latter of:
Account funding date
Notification date (the date CFS receives a valid consent form)
Fee start date
Note: There is no backdating of fees if the notification date is after the nominated Fee start date.
Adviser use only
Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee and issuer of super and pension products. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the issuer and Investor Directed Portfolio Services (IDPS) operator and administrator of investment products.
This article is based on current requirements and laws as at 6 August 2026. While all care has been taken in preparing the information contained in this document (using reliable and accurate sources), to the extent permitted by law, no one including CFSIL, nor any related parties, their employees or directors, accept responsibility for loss suffered by anyone from reliance on this information. This article provides general information for the adviser only and is not to be handed to any investor. It doesn‘t take into account anyone’s individual objectives, financial situation, needs or tax circumstances. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) before making any recommendations to a client. The PDS and FSG can be obtained from www.cfs.com.au or by calling us on 13 18 36.