Is GST Charged on Real Estate Agent Commission in Queensland?

A vendor signs their Form 6 and asks: “Does that 2.5% include GST?” It sounds like a simple question. The answer has real consequences — not just for what the seller pays at settlement, but for how agents present their fees, what the law actually requires on the appointment form, and whether certain sellers can claim any of that GST back. Getting this wrong creates disputes, undermines trust, and in some cases invalidates the appointment itself.

All real estate agent fees on either new or second-hand property are subject to GST. That is the baseline. But understanding why, what it means in practice, and how it interacts with Queensland’s specific legislative requirements is where the detail matters for agents operating in this state.

GST Applies to Agent Commission — Without Exception

Real estate agency services are a taxable supply under Australian law. Division 9 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth) stipulates that GST is applicable to a supply of goods, services, and transactions related to real property, obligations or rights. An agent’s commission is a fee for professional services rendered in the course of an enterprise — it fits squarely within that framework.

GST applies to the real estate agent’s fee or commission because it is considered a professional service; some agents include this in their negotiations when signing the appropriate forms. It does not matter whether the underlying property is residential or commercial, old or new, sold at auction or private treaty. The nature of the property being sold affects whether GST applies to the sale price — but it has no bearing on whether GST applies to the agent’s fee. Those are two entirely separate transactions.

For existing residential sales, the sale is generally input-taxed (no GST on the sale price), but GST still applies to the agent’s service. This is the distinction that confuses vendors and, occasionally, agents who are new to the profession. A typical resale of a house in Brisbane attracts no GST on the purchase price — but the agent’s commission on that same transaction is fully taxable at 10%.

The 10% GST rate has applied since the Howard government introduced the GST on 1 July 2000. GST in Australia is a value added tax of 10% on most goods and services sales, with some exemptions (such as for certain food, healthcare and housing items). Real estate agent services have never been among those exemptions.

What Queensland Law Says About GST on Commission

Queensland’s regime for agent commissions is governed by the Property Occupations Act 2014 (Qld) (PO Act). The GST treatment of commission is not left to the agent’s discretion or negotiation — it is embedded in the statutory appointment requirements.

The Queensland Government’s guidance confirms that commission must include GST and clearly state this in the appointment to act, and must be set in writing at the time of appointment. An agent may not change their commission once they and the client have signed the appointment.

The REIQ makes this equally plain. In accordance with the Property Occupations Act 2014 (PO Act), agents must specify a commission amount that is GST inclusive and specify when commission is payable. The REIQ directs agents to sections 104 and 105 of the PO Act for the full requirements.

The commission payable must be inclusive of GST. The commission can be expressed in a number of ways, which may include as a percentage or a flat fee (or a combination of both), however, it is imperative that agents clearly express the commission payable and that the client fully understands the likely amount.

The updated Form 6 reinforces this. Part 7 of the Form 6 details any commission payable to the real estate agent. Whilst commissions have always been inclusive of GST in accordance with the Property Occupations Act 2014, the wording has been changed and bolded in the new Form 6 to include ‘including GST’ for clarity.

The practical implication: when you write a percentage commission on a Form 6 in Queensland, that figure must represent the GST-inclusive total. An agent who quotes “2.5%” on the Form 6 is representing that 2.5% is the complete cost to the vendor, with GST already incorporated. If the intent is to charge 2.5% plus GST, the inclusive figure — 2.75% — must be what appears on the form. Misrepresenting this, even carelessly, can create a dispute about what was actually agreed and potentially expose the agent to a professional indemnity claim.

The Risk of Showing Commission Excluding GST

The REIQ identifies recurring mistakes it sees with Form 6 appointments, including commission shown excluding GST. This is flagged specifically because it creates ambiguity about the true cost to the client and may mean the appointment does not comply with section 105 of the PO Act.

Under the Property Occupations Act 2014 (Qld), an appointment of a property agent or resident letting agent is ineffective from the time it is made if the appointment does not comply with section 104. In plain terms: if the form is not done properly, you can end up in a dispute about whether the agent was validly appointed, what they are entitled to charge, and what authority they had to spend money or take particular steps.

An invalid appointment has consequences far beyond a GST dispute. It can render the agent’s entire entitlement to commission unenforceable. For an agent managing a pipeline of listings, this is not a theoretical risk — it is the kind of error that surfaces at the worst possible moment.

How GST Affects the Commission Calculation in Practice

The maths is straightforward once the principle is established. GST is calculated on the agent’s commission fee, not on the entire sale price of the property. The agent is providing a professional service, and just like any other service, it is subject to GST.

Consider a concrete example: a property selling for $850,000 with a commission rate of 2.5% plus GST.

The base commission is $850,000 × 2.5% = $21,250. GST at 10% adds $2,125. The total commission payable is $23,375.

If that same commission is expressed as a GST-inclusive rate, it would be 2.75% of $850,000 = $23,375. Both approaches arrive at the same number — the critical difference is how the rate is disclosed on the Form 6, which must be the GST-inclusive figure.

On a $700,000 sale with a 2.5% commission ($17,500), the GST would be 10% of $17,500, which comes to $1,750, making the total fee $19,250. On higher-priced properties, the GST component becomes substantial and vendors who are not prepared for it can feel blindsided at settlement.

The confusion in the market arises because some agents quote their commission as “plus GST” in casual conversation or in marketing materials, while the Form 6 must reflect the inclusive total. The Form 6 should clearly state the commission structure and confirm whether GST is included or excluded. However, the Queensland Government’s position — and the PO Act’s requirement — is that the amount stated in the appointment must be GST-inclusive. The “plus GST” conversation is fine in a listing presentation, but what goes on the form is what the law requires.

GST on Commission: What Changes With Commercial Property

The fundamental rule — that agent commission attracts GST regardless of the property type — does not change for commercial transactions. However, the practical significance of the GST component differs markedly depending on the vendor’s circumstances.

If you supply property and are registered or required to be registered for GST, the sale may be input taxed — meaning you are not liable for GST on the sale and you cannot claim GST credits for anything purchased or imported to make the sale. For example, this applies to the sale of existing residential premises.

For a standard residential vendor — typically a homeowner selling an existing house — the GST on agent commission is a real, unrecoverable cost. They are not registered for GST and have no mechanism to reclaim it.

The picture shifts for vendors selling new residential premises, commercial property, or operating as a GST-registered entity. If you sell commercial residential property, you are generally making a taxable sale. You can claim GST credits on purchases made relating to selling your property, for example, the GST included in real estate agent or solicitor fees.

Similarly, if you sell commercial residential property, you are generally making a taxable sale, and you can claim GST credits on purchases made relating to selling your property — for example, the GST included in real estate agent or solicitor fees. To claim GST credits, you must be registered for GST.

For GST-registered vendors, the 10% GST on commission becomes an input tax credit — recoverable against their BAS. In practical terms, this means the real cost of commission to a developer or commercial property owner is effectively reduced by one-eleventh. For a residential owner-occupier, it is not.

This distinction matters when agents are advising clients. Stating the GST-inclusive commission as the “cost” without acknowledging that a GST-registered vendor may recover part of it through their BAS gives an incomplete picture. Equally, agents should not be providing tax advice on whether a particular vendor can claim credits — conveyancers and real estate agents can assist purchasers to complete settlement forms, but they cannot provide GST advice unless they are registered tax or BAS agents.

GST on Commission and Non-Resident Vendors

Queensland continues to attract significant interest from overseas investors and non-resident property owners. This group has specific considerations around GST on agent services that domestic transactions do not raise.

If you provide services to non-resident owners of Australian property, those services are taxable. These services could include real estate management or preparing tax returns. The ATO makes clear, through a worked example, that where an Australian real estate agent manages or sells a property for a non-resident owner, the services provided by the real estate agent are taxable.

Non-resident vendors selling Australian property will therefore pay GST on the agent’s commission in the same way a resident vendor does. Whether they can recover that GST as an input tax credit depends on whether the non-resident entity is registered for Australian GST — which itself depends on whether they are conducting an enterprise with turnover above the registration threshold. The threshold for GST registration in Australia is AU$75,000 for businesses or enterprises, and AU$150,000 for non-profit organisations.

For overseas investors managing a single investment property, registration is unlikely; the GST on commission is simply a transaction cost of the sale. For non-resident developers or entities with significant Australian property portfolios, registration and credit entitlement become live questions requiring accountant advice.

The “Plus GST” Quoting Problem in the Queensland Market

The real-world tension in Queensland is that many agents still quote their commission rates in casual conversation, in listing presentations, and in online advertising as a headline percentage — sometimes described as “plus GST” and sometimes not. Adding 10% GST is required if the quote is “plus GST,” since agent services are taxable.

Vendors hearing “2.5 percent” in a listing presentation and then seeing “2.75 percent (inclusive of GST)” on their Form 6 can feel as though the rate has changed — even though it has not. This is one of the most common sources of friction at the point of appointment. The simple fix is consistency: quote the GST-inclusive rate from the first conversation. It is the number that will appear on the legally binding document, and it is the number the vendor will actually pay.

The obligation to be transparent extends beyond the form itself. Beyond the Property Occupations Act, the Australian Consumer Law (ACL) applies to real estate services, advertising and fee disclosures. These rules focus on fairness and transparency. Agents must not engage in misleading or deceptive conduct — including statements about fee structures, rebates, and what the commission covers.

Advertising a commission rate without clearly indicating whether it is inclusive or exclusive of GST, in a context where a vendor could reasonably be misled about the total cost, creates potential ACL exposure. It is not merely a Form 6 compliance issue — it extends to every touchpoint in the listing process.

GST on Marketing and Other Fees

Vendor-paid advertising (VPA) and marketing costs are a separate line item from commission on the Form 6, but they carry the same GST treatment. Portal listings, photography, floorplans, and print advertising are professional services; where supplied by GST-registered providers, they attract GST.

The appointment should list marketing items, total costs, and payment timing. Any rebates or commissions the agent receives from third parties in connection with these costs must be disclosed, including the amount or method for calculating it.

Where an agent receives a rebate or volume discount from a marketing provider and passes on a grossed-up cost to the vendor, the GST treatment of that rebate arrangement can become complex. Section 104(1)(v) of the PO Act requires disclosure of any rebate, discount, commission or benefit the agent receives in relation to expenses incurred. The GST implications of these arrangements are a matter for the agent’s accountant and are worth understanding clearly before building them into a standard fee structure.

Auction fees present a similar consideration. Selling a Queensland property at auction requires paying an auctioneer’s fee, and because most real estate agents are not registered auctioneers, this cost is most often considered as separate from the real estate agent’s fees. Auctioneers providing services are, where registered for GST, charging a taxable supply — so the auctioneer’s fee also attracts GST. Vendors at auction sales therefore face GST on both the selling commission and the separate auctioneer’s fee where applicable.

Conjunction Sales and GST on Split Commission

In a conjunction sale — where a listing agent and a selling agent from different offices collaborate — the commission structure adds another layer to the GST question. The total commission to the vendor is set on the Form 6, and GST applies to that total as it would any other sale.

The split between agencies, however, is a separate commercial arrangement. Where the listing agency pays a referral or conjunction fee to the selling agency, that payment is also a taxable supply — the selling agency is providing a service (introducing the buyer) to the listing agency. GST applies to the conjunction payment, and a tax invoice is required.

Only one commission should be payable for the same sale. The vendor pays one GST-inclusive commission; the agents sort out their internal split. Both sides of that internal arrangement must manage their own GST obligations correctly — a point that becomes more complex in cross-state conjunction transactions or where one party operates under a different business structure.

What This Means for Queensland Agents

GST on real estate agent commission in Queensland is non-negotiable — it applies to every agent service, on every property type, regardless of whether the underlying sale is taxable. All real estate agent fees on either new or second-hand property are subject to GST.

The practical obligations for agents operating in Queensland are clear:

• The commission stated on every Form 6 must be GST-inclusive. This is a requirement under sections 104 and 105 of the Property Occupations Act 2014 (Qld) and is reinforced in the updated Form 6 wording. Showing a commission figure excluding GST on the appointment form is a known compliance failure that the REIQ flags as a recurring source of professional indemnity claims.

• Quote consistently. The GST-inclusive figure you put on the Form 6 should be the same number you quoted in the listing presentation. Vendors who hear “2.5 percent” and then sign a form showing “2.75 percent” have a reasonable basis for feeling misled — even if no deception was intended.

• Understand the vendor’s position. For standard residential vendors, GST on commission is an unrecoverable cost. For GST-registered vendors selling commercial or new residential property, it may be recoverable as an input tax credit. Acknowledge the distinction without providing tax advice — and direct vendors to their accountant where the question has any complexity.

• Apply the same rigour to other fees. Marketing costs, auctioneer fees, and conjunction payments all attract GST where supplied by registered entities. Every authorised expense on the Form 6 should reflect GST-inclusive amounts where applicable, and any third-party rebates must be properly disclosed.

• Non-resident vendors are not exempt. Services provided to overseas-based owners of Australian property remain taxable. The GST-inclusive commission applies whether the vendor is sitting in Brisbane or Singapore.

The agent who gets this right — who quotes clearly, documents it correctly, and explains it plainly to vendors — eliminates a significant source of post-listing friction. The agent who gets it wrong faces, at best, an awkward conversation at signing and, at worst, an appointment that is legally ineffective from the moment it was executed.