Calculate commission earnings for salespeople, real estate agents, mortgage brokers, and financial advisers. Includes tiered commission structures.
| Item | Value |
|---|
| Industry | Typical commission |
|---|---|
| Real estate (residential) | 1.6–3.5% of sale price (varies by state) |
| Mortgage broker (trail) | 0.15–0.25% p.a. of loan balance |
| Mortgage broker (upfront) | 0.55–0.7% of loan amount |
| Insurance broker | 5–20% of premium |
| Car salesperson | $500–$2,000 per vehicle (flat fee structure) |
| Financial adviser (fee-for-service) | Regulated — no trailing commissions on new products |
Commission is a performance-based payment calculated as a percentage of sales revenue, profit, or another metric. Commission structures are common in real estate, insurance, financial services, sales roles, and recruitment. Understanding how your commission is calculated — and how it is taxed — is essential for income planning.
| Structure | How It Works | Example |
|---|---|---|
| Flat rate | Fixed % on all sales | 2% on every dollar sold |
| Tiered (accelerator) | Higher % as thresholds reached | 1% to $100k; 2% to $200k; 3% above |
| Residual | % on ongoing subscription revenue | 0.5% on each year of retained client |
| Gross profit | % of profit margin not revenue | 20% of the gross margin on each sale |
| State | Typical Commission Rate | On $800,000 Sale |
|---|---|---|
| NSW | 1.8–2.5% + GST | $14,400–$20,000 + GST |
| VIC | 1.5–2.5% + GST | $12,000–$20,000 + GST |
| QLD | 2.0–3.0% + GST | $16,000–$24,000 + GST |
| WA | 2.5–3.5% + GST | $20,000–$28,000 + GST |
Is commission income taxable in Australia?
Yes. Commission income is fully assessable income and taxed at your marginal rate in the year it is received. PAYG withholding applies if paid by an employer. Self-employed agents paying their own GST must declare commission revenue in their tax return and on their BAS.
How are real estate agents paid in Australia?
Real estate agents are paid a commission as a percentage of the sale price, typically 1.5-3.5% plus GST depending on state and property value. Commission is only paid if the property sells — agents take the risk of not being paid if the sale does not proceed. Commission is negotiable and can sometimes include a marketing fee component.
What is a tiered commission structure?
Tiered (or step/accelerator) commissions pay higher rates as sales milestones are reached. For example: 1% on first $100,000 sold; 1.5% on $100,001-$200,000; 2% above $200,000. This incentivises exceeding targets. The accelerated rate typically applies only to sales above each tier threshold, not retroactively to all sales.