Commission Rebates

We work with refunds and commission rebates every day and understand all the details of the process. This means we also understand that you want to know everything about that process before you choose to register with Commission Rebates to start receiving your fees and commissions paid back to you. Therefore we have compiled this comprehensive list of FAQs to answer any question you may have about the Commission Rebates process.

About Trailing Commissions

What are trailing commissions?
Trailing commissions are the commissions paid to financial advisors, brokers and product providers after they have helped you choose a home loan, superannuation account, insurance policy or investment account. The commissions continue to be paid to the advisor or provider for the life of the product, on the understanding that you will be receiving ongoing advice and assistance from that advisor or provider. However, in most cases you don’t hear from them after they have sold you their product, yet they continue to profit from commissions from the sale. Trailing commissions can be between 0.2% and 1.1% of the balance of your investment or loan, but on average are around 0.4% and are generated on your financial products regardless of whether you used a broker, or went direct to the provider.

Are there trailing commissions on my investment?
Most Australian financial products will pay trailing commissions as a percentage of the balance of your investment account. The trailing commissions are paid each year to the broker or advisor who set up the investment for you, and if you dealt directly with the investment provider, the provider retains the trailing commissions for themselves. Request a refund by registering with Commission Rebates now, to find out whether your investments are paying trailing commissions.

About Commission Rebates

What will you charge me for your service?
At Commission Rebates we will not charge you any joining fees or ongoing transaction or account keeping fees. Instead, you will receive 50% of the first $480 of commissions refunded to you, after which you will receive 100% of the commissions paid back to you.

What if my commissions don’t reach the minimum amount?
Then you won’t be charged any fees from Commission Rebates for our service and you will receive 100% of your commissions which are less than $480, refunded to you.

Is Commission Rebates an independent service?
Yes – we are not affiliated with any fund managers or financial product providers and so we can assist you in refunding commissions from any financial product you hold.

Who are Commission Rebates?
We are an Australian owned and operated refund service, fully licensed to act as the broker of your financial products and pay the trailing commissions from those products back to you. As such we are also regulated by the Australian Securities and Investment Commission (ASIC), who you can contact on 1300 554 774, or find out more at their website, http://www.search.asic.gov.au/fsr/far.html. This also means you are required to read our Financial Services Guide to make sure you are aware of the services we offer.

Is Commission Rebates fully licensed?
Yes – since we are offering only a refund service, not advice, we are required to hold only an ASIC Authorised Representative license. This enables us to provide general financial product advice, deal in financial products and issue, apply for, vary or dispose of financial products.

Should I register with Commission Rebates?
If you are interested in being refunded the trailing commissions from your financial products and you just need someone with the tools to help you get back those commissions from a broker or provider, then yes – you should request a refund by registering with Commission Rebates now.

Why don’t you offer financial advice?
Because we are out there to provide the smart investors like yourself, make the most of their financial products. You’ve already chosen the best investment or superannuation account for your circumstances, all we need to do is help you get back the fees and commissions generated by that product.

How can Commission Rebates offer such affordable refund services?
Because we do not offer advice, we work only to make the commissions and fee structures of Australian investments, insurance and superannuation as transparent as possible. This means that we have low overheads and aren’t consumed by the costs of financial advisors and so we can search for the financial products which are not offering their customers the best value, and show those customers how to get that value back in the form of trailing commission refunds.

Can I refer a friend, or my employer?
You can refer friends and family members to Commission Rebates online, or when someone you have referred registers and includes your name and client code on the form. You can refer your employer to Commission Rebates to ensure fairer and more profitable compulsory superannuation contributions.

Can I register with Commission rebates even if I don’t have any eligible financial products?
Yes – you won’t be charged any fees for registering with Commission Rebates, but when you are ready to invest, you will also be set up to receive your trailing commissions directly refunded to you. Even if you are not collecting trailing commissions, you can also still refer friends or family members to Commission Rebates so they can benefit.

About Your Rebates

What happens when I register to request a refund?
Once your paperwork has been received by Commission Rebates, we will update the details of your current nominated broker to be us. When Commission Rebates is registered as your broker, your managed fund investment fees will be reduced to zero, and we will contact you via email to confirm your login and password details so you can view your account. From then on, Commission Rebates will be paid the trailing commissions on your registered financial products, and we will then pass those commissions onto you.

How are my rebates paid and how do I know the amounts are correct?
Each year you will receive a cheque payment of the trailing commissions generated on your financial products, from Commission Rebates. We will also send you a statement which reconciles the amount of your rebate across your financial products, so you can see where the refund has come from, and that the amount is the correct percentage of each investment.

From which fund managers and financial institutions can I receive a rebate?
If you are currently with any Australian advisor, broker or financial product or service provider which calculates or receives trailing commissions, you are eligible to receive those commissions paid back to you.

Can I receive the trailing commissions from my investments if I dealt directly with the fund manager?
Yes – even if you don’t use a broker when opening an investment account, trailing commissions are still generated, they are simply retained by the fund manager instead. Therefore, you are able to register with Commission Rebates and we can collect those commissions as your registered fund broker, and refund them to you.

How do I apply through Commission Rebates?
If you choose to deal directly with Commission Rebates to open an investment fund or financial product, you will need to return your application paperwork to Commission Rebates. The payments for your investment amount can be paid by cheque, made out to the fund manager, when Commission Rebates receives your application, we will notify the fund manager that you are a client of ours, and that all entry fees and initial commissions will be refunded in full, and trailing commissions will be repaid on a yearly basis.

How can I manage my Commission Rebates account?
You can login to the members section of the Commission Rebates site to change your address or update your details. If you forget your login password, contact us and we will email you your password. To change your password to something more memorable, you can update those details when you login too.

Can I receive trailing commission rebates on existing financial products?
Yes – you cannot get back the commissions which have already been paid on your existing financial products, but by registering with Commission Rebates, you can be sure you will receive any future commissions generated.

Are my commission rebates taxable?
We cannot provide tax advice on your circumstances as everyone is different, so we suggest you ask your accountant whether you will be taxed on your commission rebates.

About Your Investments and Financial Products and Services

Will my financial products be affected if I register with Commission Rebates?
When you register with Commission Rebates you are not changing any details of your investment or financial product, you are simply nominating us as your broker, so we can collect the trailing commissions and repay them to you. we will have no control over your investments, except to help them grow further by putting more money back in your pocket each year.

Will the income from my allocated pension be affected if I register with Commission Rebates?
No – you will continue to receive your allocated pension as an income deposited directly into your bank account each week. The only change is that you will also receive a cheque or deposit each year, of the trailing commissions generated on your pension account.

What types of investments can be registered with Commission Rebates?
If you have a self managed super fund, a compulsory 9% superannuation fund, a master trust or a wrap account you can benefit by registering with Commission Rebates. We can collect the trailing commissions from all of these financial products, and refund them to you each year.

Can I register my home and contents insurance policy with Commission Rebates?
No – only personal insurance policies such as life insurance and trauma insurance are eligible for trailing commission refunds through Commission Rebates.
 
Will I receive a refund if I am with an Industry Super Fund?
No – Industry Super Funds do not pay any commissions to financial advisors and so no trailing commissions will be generated on your account.

Do I need to change my financial advisor if they are charging me a service fee?
If your financial advisor is charging you a fee when they offer you services and advice, this is not a reason to leave as they may already be rebating the commissions from your financial products to you – find out if this is the case, and stay with the financial advisor you feel most comfortable with.

If I receive commission rebates will I be affected by capital gains tax issues?
No – there is no change of ownership as your investments stay in your name, so capital gains tax is not an issue.

Can I receive trailing commissions back from investments in agribusiness?
In general, agricultural investment schemes do not pay trailing commissions to advisors or providers. However, there are often substantial initial commissions charged on an agricultural investment, and you can request a refund by registering now, and get back those initial commissions.

Can I register the investments and insurance policies of my extended family?
Yes – you can have the trailing commissions from the financial products held by all of your family members deposited into one refund account. All you have to do is have each account holder sign a Change of Advisor form to nominate Commission Rebates as their broker, so we can collect their trailing commissions on their behalf.

If you have a question about trailing commissions or Commission Rebates we haven’t answered here yet, contact us and we’d be happy to add your question and answer to our FAQs page.