Commission Refunds Comparison Guide
Rebate businesses will give commission refunds back to the policy or investment owner every year. More and more Australians are using these services since it literally pays to use them.
How commission refunds work
If you have used one of the financial institutions or banks in Australia to get your super funds, life insurance or managed funds arranged chances are that some of the money you have paid into that fund has been paid in the form of a kickback to an advisor or financial planner. Usually this is in the form of a commission that is paid up front, but it may also be a trail commission that is paid annually and is based on how much money is in the fund. In many cases you will not even know who is getting the commission.
You can have the choice of who gets paid the commission by switching to an investment at a lower cost that does not pay any commissions or keep everything in place and make a transfer of the broker authority over to a commission rebate company. There are a lot of providers for rebates with new ones arriving on the scene constantly.
Usually this type of company will provide this service by contacting the providers of your product and requesting that any entry fees be lowered, most often to zero, and that trail commission’s be transferred over to them. These commissions are then shared with you. You can pick out the best company by analyzing their fees, how large a refund you can get and what types of funds they will cover. Finding the right company will also depend on how much your investments are worth.
Managed and super funds
If you are part of a for-profit or retail superannuation fund the odds are good that you are indirectly paying a financial advisor commissions. Upfront commissions can be as high as 5% for every contribution made. You can save money by using a rebate company since these fees for entry are reduced down to zero and trail commissions for a superannuation are roughly .5% every year of the balance in your fund. This percentage can be higher depending on the company.
The best companies for a superannuation worth $50,000 or less are listed in the table below.
| Companies | Refund Frequency | Commission Refund Initially | Years Rebating Commissions | Trial Refund for Commissions |
| iRefund www.irefund.com.au |
Annually | 100% | 2 | 50% of the first $790 p.a. and then 100% after that. |
| Commission Refunders www.commissionrefunders.com.au |
Bi-Yearly | 50% | 8 | 50% of the first $700 p.a. and then 100% after that. |
| Refund Easy www.refundeasy.com.au |
Quarterly | 100% | 1 | 60% of the first $700 p.a. and then 100% after that. $280 maximum fee for each couple. |
| Your Share.com.au www.yourshare.com.au | Annually | 100% | 4 | 50% of the first $590 p.a. and then 100% after that. |
| My Money | Monthly | 100% | 1 | 50% of the first $480 p.a. and then 100% after that. |
The table below represents the refund for trail commissions you could expect to receive from each company based on the balance in your superannuation fund.
| Rebate Company | >$20,000 | >$50,000 | >$75,000 | >$100,000 | >$200,000 |
| Commission Refunders | 50 | 125 | 187.5 | 250 | 650 |
| MyMoney | 50 | 125 | 187.5 | 260 | 760 |
| Refund Easy | 60 | 150 | 225 | 300 | 720 |
| YourShare.com.au | 50 | 125 | 187.5 | 250 | 705 |
| iRefund | 50 | 125 | 187.5 | 250 | 605 |
This is the company that gets the best marks for 70,000 to 200,000 superannuation balances.
| Rebate Company | Refund Frequency | Commission Refund Initially | # Years Rebating Commissions | Trial Refund for Commissions |
| Dixon Advisory | Annually | 100% | 15 | 0% of the first 150 p.a. and then 100% per product afterwards. |
Here is a list of other companies worth examining.
| Rebate Company | Refund Frequency | Commission Refund Initially | # Years Rebating Commissions | Trial Refund for Commissions |
| Commission Rebate | Annually | 100% | <1 | 0% of the first $100 and then 75% maximum annual fee is $350 |
| 2020 DIRECT INVEST | Varies | 100% | 13 | Case by case on investments that are at least $100,000 |
| CommSec | n/a |
Up to 100% |
6 |
0% |
Rebate Financial Services |
4 – monthly |
100% |
15 |
50%of the total amount, when the
|
Investsmart TrailCap |
Annually |
100% annually. |
10 |
0% of the first $300 p.a. and 50% after that. |
| Rebate Company | Managed funds | Life insurance | Margin loans | Share Trading | Superannuation | Personal advice offered | Mortgage | General Insurance |
| iRefund | Yes | Yes | Yes | Yes | ||||
| Commission Refunders | Yes | Yes | Yes | Yes | Yes | |||
| Refund Easy | Yes | Yes | Yes | Yes | Yes | Yes | ||
| MyMoney | Yes | Yes | Yes | Yes | ||||
| YourShare.comau | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |
| Dixon Advisory | Yes | Yes | Yes | Yes | ||||
| Commission Rebate | Yes | Yes | Yes | Yes | Yes | Yes | Yes | |
| 2020 DIRECTINVEST | Yes | Yes | Yes | Yes | Yes | |||
| Investsmart Trail Cap | Yes | Yes | Yes | Yes | Yes | Yes | ||
| Rebate Financial Services | Yes | Yes | Yes | Yes | Yes | |||
| CommSec | Yes | Yes | Yes |
Regarding managed funds
There are similar rates for commissions being charged for managed funds, and it is in your best interests to use discount brokers and rebate companies to save money. Some companies appearing in the table do not give commission refunds on trail commissions but do reduce the entry fee to zero. You may see them advertising themselves as supermarkets for funds, and while they do not give advice some do have research from third parties they offer their clients to make investment decisions easier.
Home loans and life insurance
Usually commissions on policies for life insurance are very high and the salesperson gets a large commission up front and trails for the following years. The percentage can be as high as 120% of the premium for the first year as an upfront commission and 10% for the trails in the years that follow. It may also be paid as a 30% yearly commission for the life of the policy.
As you can see in the table, all of the companies listed give rebates for a percentage of the commissions. If you are in the market for a new policy you should consider using a rebate company if no advice is needed.
If you are getting a loan for your home you should take note that an initial commission is paid to the mortgage broker and it is approximately .6% of the borrowed amount. This broker will also get a yearly trail of approximately .2% of the balance of the loan that is remaining. Some of the companies listed in the table above do give commission refunds on home loans, but these loans cannot be redirected over to a rebate company from an existing broker authority. In order to take advantage of refunds on the commissions a new loan or refinancing needs to take place. This will be a personal decision on your part based on number crunching the benefits of staying with your present loan or taking out a new one to get commission rebates. Remember that many fees may apply for a new loan.
Some things to consider
- One of the disadvantages to switching over is having to pay for advice. It can actually be an advantage, however, since the advice you will be given will be by a third party that is not interested in sales.
- More and more financial products are introducing refunds for commissions. Some of the companies in the table will give you rebates on personal loans, cash management trusts and real estate commissions.
- Some of these services for rebates are just starting out and has not established themselves yet. Keep this in mind as you compare these rebate companies.
- If you are worried about your financial planner becoming angry if you decide to switch over to a rebate company you really don’t have to be. Usually planners don’t really provide a lot of service and if you do receive an angry phone call a complaint can be filed to the Financial Ombudsman Service.
Join the thousands of Australians that are making money back in commission refunds every year. There is every reason to make the switch over today if the end result means more money in your pocket tomorrow.
Top Commission Refund Services
| Service | Details | Value of Rebate | Fees | Refund to You | |
|---|---|---|---|---|---|
 iRefund Commission Refunds |
The iRefund commission collection and refund service is a no-cost service. That is, iRefund will always be paying you, our members, the fees and commissions that we collect on your behalf. . |
First $790 | $395 (50%) | $395 (50%) |   |
| Amount in excess of $790 | $0 (0%) | $395+ (100%) | |||
 MyMoney Commission Refunds |
Get all your trailing commissions rebated to you. There are no upfront fees charged, an annual fee is paid to MyMoney from the commissions refunded. There is no joining fee or member fee. So the service is free to you. |
First $480 | $240 (50%) | $240 (50%) | |
| Amount in excess of $480 | $0 (0%) | $480+ (100%) |
Example of the potential refund
| Value of Investments | Average Rate | Commission | Annual Refund |
| $50,000 | 0.4% | $200.00 | $100.00 |
| $100,000 | 0.4% | $400.00 | $200.00 |
| $150,000 | 0.4% | $600.00 | $360.00 |
| $300,000 | 0.4% | $1,200.00 | $960.00 |
Note: Commission rates will vary between investments and this table excludes any initial commissions or commissions on continuing contributions to your superannuation funds or other savings plans.