Real Estate Agent Fees and Commissions Australia — What You’ll Pay (2026)

Real estate agent commission is typically the largest cost of selling a property in Australia. Rates vary significantly by state, city, and agency. Understanding how commission is structured — and how to negotiate it — can save tens of thousands of dollars on a high-value sale.

How Commission Is Calculated

In most states, commission is charged as a percentage of the final sale price. There are two common structures:

Flat rate commission: A single percentage applies to the full sale price.

$$\text{Commission} = \text{Sale price} \times \text{Commission rate}$$

Example: $900,000 × 2.0% = $18,000

Tiered (sliding scale) commission: A higher percentage applies to the amount above a set threshold.

Example: 2.5% on the first $500,000 + 1.5% on the amount above $500,000

First $500,000: $12,500
Amount above $500,000: $400,000 × 1.5% = $6,000
Total: $18,500

Compare carefully — a tiered structure can sometimes cost more than it appears.

Typical Commission Rates by State

State	Typical commission range	Notes
NSW	1.5–2.5%	Sydney inner suburbs at lower end; regional NSW at higher end
VIC	1.6–2.5%	Melbourne metro competitive; regional VIC higher
QLD	2.0–3.0%	Higher rates common; Brisbane competitive
WA	2.2–3.5%	Higher rates; some regional areas 3.5%+
SA	1.5–2.5%	Adelaide metro typically 1.75–2.25%
ACT	2.0–2.5%
TAS	2.5–3.5%
NT	2.5–4.0%

Rates are indicative. Commission rates are negotiable and not regulated in most Australian states — always ask.

What Commission Covers

Commission typically includes:

Agent’s time and expertise (appraisal, negotiation, buyer management)
Basic open for inspection attendance
Liaison with your conveyancer and the buyer’s agent

Commission typically does NOT include (additional vendor costs):

Marketing and advertising (photography, portal listings, signage, print)
Auction fees (if auctioning) — typically $500–$1,500

Always ask: “Is marketing included in your commission, or is it additional?” Many agents quote a low commission but then add $5,000–$15,000 in marketing costs.

Negotiating Commission

Commission rates in Australia are negotiable — agents are generally willing to negotiate, particularly if:

The property is high value (agent earns more in absolute dollar terms even at a lower %)
The property is likely to sell quickly (less work for the agent)
You are a repeat client or referral

Tips for negotiating:

Get quotes from at least 3 agents
Compare total cost (commission + marketing), not just commission rate
Negotiate on both commission and marketing budget
Consider an incentive structure: lower base rate + a bonus for exceeding a target price

Example incentive structure: “1.5% on the first $900,000; 5% on every dollar above $900,000.” This aligns the agent’s incentive to maximise the sale price.

Is Commission Tax-Deductible?

Owner-occupied property: No — commission on the sale of your main residence is not deductible (but the CGT main residence exemption means no capital gain is recognised anyway).

Investment property: Yes — real estate agent commission on the sale of an investment property is a cost of disposal and is included in the CGT calculation (reduces the capital gain or increases the capital loss). Speak with a registered tax agent.

Flat Fee vs Commission — A Growing Alternative

Some agencies offer flat-fee or fixed-fee selling services:

Listed fixed fee: $5,000–$15,000 regardless of sale price
Typically available for lower-to-mid priced properties
Often involves more vendor involvement (attending opens, managing some buyer enquiries)
Less common in premium markets where agent negotiation skill is more valuable

Compare carefully: A flat fee of $8,000 on a $500,000 sale equals 1.6% — potentially competitive. On a $1.2M sale, the same flat fee is 0.67% — significantly cheaper than a percentage commission.

Frequently Asked Questions

When is commission paid?

Commission is paid at settlement — deducted from your sale proceeds before you receive the net amount. You do not pay commission upfront.

What if I don’t sell at auction — do I still pay commission?

Auction fees are generally charged regardless of the auction outcome. Commission is paid only when a sale completes. If the property passes in at auction and does not sell within the agency agreement period, no commission is due (but marketing costs already incurred are not refundable).

Can I switch agents if I’m unhappy?

Check your agency agreement for the exclusivity period and termination conditions. Many agreements have 30–90 day exclusive periods. Terminating early may result in a marketing cost claim by the agent. After the exclusivity period, most agreements allow you to terminate with notice.

This article provides general information about real estate agent fees in Australia. Commission rates are indicative and negotiable. For tax advice on deductibility, speak with a registered tax agent. Find one through MoneySmart.