Last Updated on January 3, 2026 by Andrew Mckiggan
How Real Estate Agent Commission Works in Australia
If you’re selling a home, one of the first questions you’ll ask is how real estate agent commission works — how much is paid, who receives it, and whether higher commission actually delivers better results.
This guide explains real estate agent commission in Australia in plain terms, including average commission rates, how commissions are structured, how they are split, and what sellers should understand before signing an agency agreement.
What Is Real Estate Agent Commission?
Real estate agent commission is the fee paid to an agent for successfully selling a property. In Australia, this fee is most commonly calculated as a percentage of the final sale price, although fixed-fee models are also used in some markets.
Commission is only payable once a property sells. If the home does not sell, the agent does not receive commission.
What’s the Commission for a Real Estate Agent in Australia?
So, what’s the commission for a real estate agent in Australia?
Most residential property sales fall within this range:
2.0% to 2.5% of the final sale price, plus GST unless stated otherwise.
The exact commission rate depends on several factors, including location, property value, market conditions, agency structure, and the services included in the agreement. There is no legislated “standard” commission rate — commission is negotiable.
Average Real Estate Agent Commission Rates in Australia
The average real estate agent commission across Australia typically sits around:
2.2% to 2.5% in capital cities
2.0% to 2.5% in regional marketsHigher-value properties often attract lower percentage rates, while lower-value properties may attract higher percentages to account for marketing costs and operating expenses.
How Much Commission Do Real Estate Agents Make Per Sale?
A common question sellers ask is how much commission real estate agents make per sale.
Before any splits or costs, commission is calculated on the final sale price:
| Sale Price | Commission Rate | Gross Commission |
|---|---|---|
| $600,000 | 2.5% | $15,000 |
| $800,000 | 2.5% | $20,000 |
| $1,000,000 | 2.5% | $25,000 |
These figures represent the gross commission only. They are not what the agent personally takes home.
How Much Does a Real Estate Agent Make in Commission After Splits?
Many sellers are surprised to learn that real estate agent sales commission is divided.
Commission is commonly split between the selling agent and the agency, and may also account for marketing costs, administration, and support staff. In some cases, commission is shared between a listing agent and a buyer’s agent.
After all splits and expenses, individual agents often receive around 30% to 40% of the gross commission. For example, a $20,000 commission may result in $6,000 to $8,000 in personal income for the agent.
How Much Commission Does a Real Estate Agent Earn Per Transaction?
Because real estate commission is performance-based, earnings vary significantly.
Some months may involve multiple completed transactions, while other months may involve none. This volatility is why commission is not the same as salary.
It also explains why job-board salary figures often under-represent experienced agents who operate independently, run boutique agencies, or are paid through business structures rather than traditional employment models.
Commission Paid to Real Estate Agents vs Seller Outcomes
For sellers, the more important question than commission percentage is whether the agent’s strategy and negotiation skill deliver a better final result.
Evidence across markets consistently shows that commission level alone does not determine outcome. Pricing strategy, buyer competition, and negotiation skill have a far greater influence on the final sale price.
In many cases, a skilled negotiator can recover their entire commission through price improvement alone.
For a deeper breakdown of how commission compares to overall value, legal protection, negotiation outcomes, and risk management, see our detailed guide on Real Estate Agent Costs in Australia.
Is Higher Real Estate Agent Commission Always Better?
Higher commission does not automatically guarantee better marketing, stronger negotiation, or higher sale prices.
What matters more is how buyers are managed, how competition is created, and how offers are negotiated. Commission should be assessed alongside strategy and execution, not in isolation.
A Real-World Example of How Commission Structure Affects Outcomes
For sellers who want to see how commission structure, negotiation approach, and total costs can differ in practice, the following local example provides useful context.
View a real-world example of how real estate commission costs and outcomes can vary.
This case study breaks down commission differences, marketing costs, negotiation outcomes, and total seller results in an actual transaction. It is provided for comparison purposes only, as individual outcomes vary depending on market conditions, pricing strategy, and buyer demand.
Key Takeaways for Sellers About Real Estate Agent Commission
Before choosing an agent, sellers should understand that commission is negotiable, average commission generally sits around 2% to 2.5%, and agents do not keep the full commission.
Negotiation skill often matters more than commission percentage alone, and the cheapest or most expensive option is not automatically the best choice.
Final Thoughts on Real Estate Agent Commission
Understanding how real estate agent commission works allows sellers to make informed decisions rather than emotional ones.
The smartest approach is to understand the commission structure, compare total costs, assess negotiation ability, and focus on the net outcome rather than the headline commission rate.
Commission structures and negotiation outcomes can vary by location, which is why reviewing broader Gawler SA property and real estate information can help sellers better understand how agent fees and results differ locally.
A well-structured campaign with strong negotiation can often outperform a higher-fee model while still delivering professional service.
