Real estate agent commission by state: how fees are set and regulated
How agent commission works in each Australian state and territory in 2026, the laws and regulators, agency agreement rules, GST and what to negotiate.
There is no set or maximum real estate commission in any Australian state or territory. Commission is a private agreement between you and the agent, written into the agency agreement, and it is normally quoted plus 10% GST. What the states do regulate is the paperwork: the agreement must state the commission and expenses, the agent must give you an estimate of the selling price, and the agent cannot charge more than the agreement allows. Rates quoted in practice vary with the price of the home and the local market, so the only reliable figure is the one you negotiate in writing.
This guide is part of the cost of selling a house in Australia. For the arithmetic of flat, percentage and tiered fees, see commission structures compared.
State-by-state rules at a glance
| State or territory | Main law | Regulator | Agreement and key rules |
|---|---|---|---|
| New South Wales | Property and Stock Agents Act 2002 | NSW Fair Trading | Written agency agreement with commission, expenses and estimated selling price; the seller can cancel the agreement until 5 pm on the next business day or Saturday after signing |
| Victoria | Estate Agents Act 1980 | Consumer Affairs Victoria | Sales authority must state commission and the agent's estimated selling price; underquoting rules require a statement of information for buyers |
| Queensland | Property Occupations Act 2014 | Office of Fair Trading | Appointment form must set out the commission and marketing; the agent must disclose any benefits received |
| Western Australia | Real Estate and Business Agents Act 1978 | Consumer Protection WA | Written selling agency agreement; commission must be agreed in writing |
| South Australia | Land Agents Act 1994 | Consumer and Business Services | Written sales agency agreement with commission and estimate of selling price |
| Tasmania | Property Agents and Land Transactions Act 2016 | CBOS and the Property Agents Board | Written authority; commission negotiable |
| ACT | Agents Act 2003 | Access Canberra | Written agency agreement; the seller supplies building and pest reports with the contract |
| Northern Territory | Agents Licensing Act 1979 | Agents Licensing Board / NT Consumer Affairs | Written authority; commission negotiable |
The NSW one-business-day cooling-off on agency agreements is described by NSW Fair Trading; the agreement can extend it. The other states' rules on ending an agreement differ, so read the termination clause before you sign. Check each regulator's site for the current forms: the details change.
What a commission quote should include
A useful proposal sets out each of these separately:
- Commission rate or fee, and whether it includes GST
- When commission is payable: usually on settlement, not on exchange of contracts. If the buyer defaults after exchange, agreements differ on whether commission is still owed.
- Marketing budget: an itemised list (portal listings, photography, floorplan, signboard, print, social media) and when it is payable
- Auctioneer fee if you sell at auction and it is not included
- Exclusive period: how long only this agent can sell the home
- Estimated selling price: in some states it must be a single figure or a range no wider than the law allows
- Rebates and referral fees the agent receives from advertisers or other service providers
How location and price affect the rate
Commission tends to be expressed as a percentage, so the dollar fee rises with the price. That has two effects you should understand before negotiating:
- On a higher-value home, a small difference in rate is a large difference in dollars. On a $1,500,000 sale, 0.25% is $3,750 plus GST.
- On a lower-priced home, especially in regional areas, agents often argue that the work is similar whatever the price and quote a higher percentage or a minimum fee.
Illustrative comparison, all figures plus GST:
| Sale price | 1.8% | 2.2% | 2.8% |
|---|---|---|---|
| $450,000 | $8,100 | $9,900 | $12,600 |
| $750,000 | $13,500 | $16,500 | $21,000 |
| $1,200,000 | $21,600 | $26,400 | $33,600 |
These rates are examples, not market data. Ask at least three local agents and compare their written proposals on the same price.
GST on commission
Agents registered for GST must charge 10% on their fee. A quote of "2.0% + GST" is 2.2% of the price. On a $750,000 sale that is $15,000 + $1,500 GST = $16,500. A home seller cannot claim this GST back. Some agents quote GST-inclusive figures; always check which one you are looking at.
Negotiating commission
What tends to work:
- Get written proposals from several agents. Agents know you are comparing.
- Compare dollars, not percentages. Convert each proposal into dollars at the same realistic price.
- Separate commission from marketing. A low commission with a large compulsory marketing package can cost more overall.
- Consider an incentive. A lower base rate with a higher rate above a realistic target aligns the agent with you, as long as the target is not set too low.
- Ask what you lose if you pay less. Fewer open homes, a junior agent running the campaign or no auctioneer may be the real trade-off.
Commission disputes to avoid
- Two agents, one buyer. If you change agents, a buyer introduced by the first agent who buys through the second can lead to two commission claims. Agreements usually contain an "introduction" clause that runs for a period after the agency ends.
- Commission on exchange. If commission is payable on exchange and the sale falls over, you may still owe it.
- Continuing agency. Some agreements continue automatically after the exclusive period until you end them in writing.
See agency agreement traps for more.
Frequently asked questions
Is there a maximum commission in any state?
No. Commission for residential sales is not capped in any state or territory. It must be agreed in writing, and the agent cannot claim more than the agreement says.
Do agents charge commission if the home does not sell?
Under a typical agreement commission is payable only when a sale settles. Marketing costs are a different matter: they are often payable whether or not the home sells. Check both clauses.
Is a flat fee better than a percentage?
It depends on the price and the service. A flat fee gives certainty, but gives the agent no extra reward for a higher price. See commission structures compared.
Who complains if an agent overcharges?
Raise it with the agency first in writing, then with your state's fair trading regulator. See complaints about agents and conveyancers.
Official sources
- NSW Fair Trading — agency agreements and estate agent rules
- Consumer Affairs Victoria — sales authorities and underquoting
- Queensland Office of Fair Trading — property agent appointments
- Consumer Protection WA — real estate agents in WA
- Consumer and Business Services SA — land agents in SA
- CBOS Tasmania — property agents in Tasmania
- Access Canberra — agents in the ACT
