Proposed CGT reforms could upend HNW low advice demand

The high-net-worth (HNW) population's vast pool of wealth estimated to be worth a whopping $4.4 trillion, yet only one quarter employ the services of a financial adviser, new research finds, but Labor's proposed tax reforms could change this.

A survey conducted by the Stockbrokers and Investment Advisers Association (SIAA), Praemium and CoreData reveals financial advice has not kept up with the HNW population's booming wealth.

It is ultimately widening the gap between demand and access, alongside growing client complexity across retirement, succession, tax, alternatives and whole-of-wealth oversight.

CoreData chief executive Andrew Inwood said what is concerning is Australia is entering its largest intergenerational wealth transfer on record, with the acceleration of the baby boomer cohort driving increased demand for advice as more investors seek to structure, protect and transition their wealth efficiently in a tightening policy and tax environment.

"The high-net-worth segment continues to expand at pace, but advice penetration hasn't kept up. That imbalance creates a clear runway for firms that can broaden their offering and deliver advice more consistently across a larger client base," said Inwood.

In the survey, nearly 80% of advisers said they focus on HNW clients, with 64% reporting that these clients represent at least half of their client base.

Almost 80% of firms manage individual client portfolios exceeding $6 million. About one quarter serve client bases that are at least 50% wholesale investors.

Pointing to Treasurer Jim Chalmers' proposed overhaul of the capital gains tax (CGT) discount announced on Budget night, Inwood said that is perhaps "the best thing" the government can do for financial advice businesses.

"Every rich person in Australia and now every person [running] a company is ringing up and saying, 'what do I do now?' [About] 90% of people now say, 'I need to talk to someone, because this has just got really complicated'," he told the 2026 SIAA Conference.

"Wages and tax on income are sticky, but wealth is slippery. It moves, it changes very, very quickly, and that is what's going to happen now."

Praemium chief strategy officer Denis Orrock commented: "What's clear from the data is that firms aren't pivoting into high-net-worth advice, they're already operating in it. The shift we're seeing is how they're broadening their role to support more of the client balance sheet, particularly as portfolios become larger and more complex."

The survey canvassed 100 advisers from stockbroking and advice firms.