How Real Estate Agent Commissions Work in Australian States and Territories

When buying or selling property in Australia, one of the biggest costs—beyond the property price itself—comes from real estate agent commissions. These commissions are the fees agents charge for marketing, negotiating, and finalising the sale of a property. But unlike stamp duty or conveyancing fees, commission rates are not fixed by law. Instead, they vary across Australia depending on the state or territory, local market competition, and the negotiation between agent and seller.

This article breaks down how commissions work and what you can expect across the different states and territories.

The Basics of Real Estate Commissions

Real estate commissions in Australia are typically structured in one of two ways:

1. Flat Percentage Fee – A set percentage of the final sale price (e.g., 2%).

2. Tiered Commission – A lower percentage up to an agreed amount, and a higher percentage above that threshold.

For example: An agent might charge 2% on the first $500,000 of the sale price and 4% on any amount above that. This structure can motivate agents to achieve a higher selling price.

In most cases, commissions also include the agent’s services such as advertising, home opens, and negotiation. Marketing costs, however, may sometimes be billed separately.

State and Territory Differences

Victoria

• Commission rates in Victoria are competitive due to the high number of agents in Melbourne and regional hubs.

• Average commission: 1.6% – 2.5% of the sale price.

• Sellers in metropolitan areas often pay lower rates due to competition, while regional sellers may face higher rates because of fewer agents.

New South Wales

• Sydney’s strong property market has driven commissions down in many suburbs, as agents compete heavily for listings.

• Average commission: 1.5% – 2.0% in metropolitan Sydney, but up to 2.5% – 3.0% in regional areas.

• Some premium properties attract tiered commission structures.

Queensland

• Unlike NSW and VIC, Queensland historically has had no cap on commissions since deregulation in 2014.

• This means rates are purely market-driven.

• Average commission: 2.0% – 3.0%, with regional areas often higher than Brisbane.

• Tiered commissions are common in high-value property markets like the Gold Coast and Sunshine Coast.

Western Australia

• WA commissions are less competitive due to fewer agents in regional towns.

• Average commission: 2.5% – 3.25%.

• Sellers in Perth may negotiate closer to 2%, while regional areas often sit above 3%.

South Australia

• Commission rates in Adelaide are relatively moderate compared to other states.

• Average commission: 1.9% – 2.75%.

• Tiered commission models are increasingly common in inner-city suburbs.

Tasmania

• With a smaller and less competitive market, Tasmanian commission rates are among the highest in the country.

• Average commission: 2.5% – 3.5%.

• In Hobart, competition is growing, which can sometimes bring rates closer to 2%.

Australian Capital Territory (ACT)

• Canberra’s tightly regulated and relatively small market means commission rates are fairly consistent.

• Average commission: 2.0% – 2.5%.

• Tiered commissions are occasionally used in prestige property sales.

Northern Territory

• Commission rates in the NT are the highest in Australia due to low transaction volumes and limited competition among agents.

• Average commission: 2.5% – 3.5%, with some agents charging up to 4% for remote areas.

• Negotiation is possible, but options are limited compared to larger states.

Additional Costs Beyond Commission

While commission is the major agent cost, sellers should also factor in:

• Marketing and Advertising: Online listings, photography, staging, and print ads can range from $1,000 to $10,000+.

• Auctioneer Fees: In auction-heavy markets like Sydney and Melbourne, auctioneer services may be an extra cost.

• Administration Fees: Some agencies charge for contracts and documentation separately.

How to Negotiate Commission

• Shop Around: Interview multiple agents and request a written breakdown of their fees.

• Compare Services, Not Just Price: The cheapest commission doesn’t always result in the highest sale price.

• Consider Tiered Structures: They can align your agent’s incentives with your goals.

• Look at Local Averages: Use state benchmarks as a guide when negotiating.

Final Thoughts

Real estate agent commissions in Australia vary significantly depending on state, territory, and local competition. Sellers in major cities like Sydney and Melbourne can often secure lower rates due to agent competition, while regional and remote areas generally attract higher commissions.

Understanding how these fees work—and how they differ across jurisdictions—empowers sellers to negotiate better deals and ultimately keep more profit from their property sale.

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