Wrap Accounts in Australia: 2025 Fees, Benefits & What to Watch

Wrap accounts have been a hot topic for Australian investors seeking streamlined portfolio management and consolidated reporting. But as 2025 brings new regulatory tweaks and competitive digital platforms, are wrap accounts still the smart choice for savvy Aussies?

What is a Wrap Account?

A wrap account is an investment platform that ‘wraps’ your various investments—such as shares, managed funds, ETFs, and sometimes even term deposits—into a single, easy-to-manage account. Rather than juggling multiple providers and statements, everything sits under one digital roof, with consolidated reporting and often adviser-driven oversight.

• Single login for all your investments
• Portfolio performance tracking with real-time reporting
• Fee transparency—but, crucially, not always lower costs

Major Australian platforms like BT Panorama, Macquarie Wrap, and HUB24 continue to dominate, though fintech disruptors are nibbling at their heels with lower-cost alternatives.

2025 Wrap Account Fees and Regulatory Changes

Fees have historically been the sticking point for wrap accounts, with layered charges including:

• Administration fees (platform charges, typically a percentage of assets)
• Investment fees (underlying fund or ETF management costs)
• Adviser fees (if you use a financial adviser to manage your wrap)

In 2025, ASIC’s ongoing scrutiny of platform fees and transparency has led to:

• Mandatory fee disclosure statements to investors at least annually
• Clearer breakdowns of all direct and indirect costs on investor dashboards
• Pressure on platforms to reduce administration fees—some now as low as 0.25% p.a. for larger balances, though smaller accounts may still see rates of 0.55%–0.75% p.a.

For example, as of March 2025, a $250,000 wrap account on a major platform could incur:

• $750 in admin fees (0.30%)
• 0.20%–0.80% in underlying investment fees
• Adviser fees (if applicable), often 0.50%–1.00%

This means total costs can easily reach 1.0%–1.5% p.a.—or $2,500–$3,750 on a $250k balance. Compare this with direct ETF investing via online brokers, which may cost under $500 p.a. including brokerage and ETF management fees.

Pros and Cons: Is a Wrap Account Right for You?

Wrap accounts aren’t for everyone. Here’s what to weigh in 2025:

• Pros:
  • Streamlined tax reporting and end-of-year statements
  • One-stop access to a wide range of investments
  • Efficient for those with complex portfolios or SMSFs
  • Option to delegate management to a professional adviser
• Cons:
  • Layered fees can erode returns, especially on smaller balances
  • Some investment options may be more expensive than going direct
  • Less suitable for hands-on, cost-conscious DIY investors

Real-world example: Sarah, a Sydney-based professional with $400,000 split across shares, ETFs, and managed funds, moved to a wrap account in 2023 for simplicity and tax reporting. By 2025, with her portfolio growing and adviser fees re-negotiated down to 0.35%, she’s paying less for admin than in 2022, but still more than if she self-managed via online brokers. For Sarah, the time saved is worth the added cost.

Who Should Consider a Wrap Account in 2025?

Wrap accounts are best suited for:

• Investors with $250,000+ in diversified holdings
• SMSF trustees juggling multiple asset classes
• Those wanting to work closely with a financial adviser
• Anyone who values convenience over rock-bottom fees

If your portfolio is simpler, or you’re fee-sensitive, consider direct investing or newer, flat-fee investment platforms that have emerged in the past year.

The Bottom Line

Wrap accounts remain a powerful tool for Australians with complex, multi-asset portfolios—especially in 2025, as platforms become more transparent and competitive. But the cost gap with DIY investing persists. Always compare fees, check for hidden costs, and weigh the convenience against your portfolio size and needs.