What Is Commission in Queensland Real Estate? Definition and Agent Guide

A vendor calls to ask why the contract has settled but no commission has hit the agency account. The answer almost always comes back to the same place: something in the appointment wasn’t right. Commission in Queensland real estate is the fee paid to a licensed agent upon the successful sale of a property, expressed as a percentage of the sale price plus GST. It is performance-based by design — no sale, no fee — and every element of how it is calculated, disclosed, and claimed is governed by a framework that has been significantly reshaped since 2014.

How Commission Works in Queensland Real Estate

The deregulated landscape

Commission rates on residential home sales in Queensland were deregulated in December 2014. Before that, the state set a maximum commission rate of 5 per cent on the first $18,000 of a property’s sale price and 2.5 per cent on the remaining balance. The old framework operated under the Property Agents and Motor Dealers Act (PAMDA), which was replaced on 1 December 2014 by four new legislative instruments, of which the Property Occupations Act 2014 (POA) is the one most directly relevant to real estate agents.

The POA removed the cap on commission, meaning agents are now able to negotiate any rate of commission with their clients, creating a more competitive marketplace. The REIQ has reminded its members and the broader industry that there is no “standard” rate of commission in Queensland, and that maximum commission rates for residential real estate were deregulated in that 2014 reform.

That deregulation changed behaviour across the entire state. Vendors who once accepted a quoted figure because it matched a published schedule now have every reason to compare — and agents who cannot articulate their value proposition have felt the pressure.

What the market actually looks like

In practical terms, rates vary by location, property type, and market conditions. The average commission rate in Queensland is around 2.57%, though it can change depending on location, the state of the market, and the type of property being sold, and can range as low as 1% and as high as 4.5%.

In 2026, high-demand inner Brisbane suburbs such as Paddington, New Farm, and Teneriffe often see commission rates closer to 1.8%–2.2% due to higher property prices and quicker sales, while outer and regional suburbs around Logan, Ipswich, and Caboolture may see slightly higher rates between 2.5%–3%, as agents typically spend more time and resources attracting buyers. On the Gold Coast, rates sit around 2.3%–2.5%, the Sunshine Coast around 2.5%–2.7%, and rural Queensland areas often reach up to 3%, reflecting the smaller buyer pool and longer sales campaigns.

Some agents continue to use the old tiered structure as a familiar reference point. Many agents still quote the classic “5% of the first $18,000, then 2.5% of the balance” structure. At current Brisbane median prices, this formula produces a result broadly consistent with the prevailing market average — but it is not a prescribed rate, and quoting it as though it is creates compliance risk.

GST and how the gross figure works

Real estate agency services are taxable supplies under the A New Tax System (Goods and Services Tax) Act 1999 (Cth). GST must be included on commission in Queensland. Commission estimates typically exclude 10% GST, which is charged on top of the agent’s commission. This means a 2.5% commission on a $900,000 sale generates $22,500 in commission before GST, with an additional $2,250 in GST payable on top — so the vendor’s total liability is $24,750. Agents who quote commission “plus GST” must make the inclusive total clear to the client; quoting only the net figure can mislead a vendor about their true selling cost.

Why Commission Matters for Queensland Agents

Commission is not just a line item — it is the mechanism through which an agent’s economic interests and a vendor’s interests are, theoretically, aligned. The structure you agree to determines how motivated you are, how you are perceived, and what happens if the deal falls apart.

For the listing agent, commission drives the entire business model. For the selling agent in a conjunctional arrangement, it determines what split is available. For the principal running a team, it is the primary revenue stream against which all fixed costs — salaries, marketing, office overheads — are measured. A 0.2% difference in negotiated commission on a $700,000 sale is $1,400. Across fifty sales a year, that is $70,000 in gross revenue. The arithmetic is not abstract.

For vendors and buyers from interstate or overseas who are unfamiliar with Queensland practice, the deregulated environment can cause confusion. Someone who has sold property in New South Wales or Victoria — where commission structures are broadly comparable — will find the absence of a mandated ceiling reassuring rather than alarming. For international buyers engaging Queensland buyer’s agents, it is worth noting that buyer’s agent fees are a separate commercial arrangement from the selling commission paid by the vendor to the listing agency.

Not all agents in Queensland structure their fees and commissions in the same way. Some include the cost of advertising in the commission and quote a higher rate, while others use a “sliding scale” or “tiered” commission — for example, 2% on the first $860,000 and 5% on anything above that — which acts as an incentive to secure a higher sale price, a practice common on premium properties. Each structure has a different effect on vendor behaviour, agent motivation, and the final negotiation dynamic, and every agent should be able to explain the practical implications of the structure they recommend.

Commission is not guaranteed

This is the point that agents in dispute with principals most often contest. Commission does not flow automatically from effort or even from producing a buyer. The right to claim commission in Queensland depends on the terms of the appointment and the circumstances of the sale. A sale that occurs outside the terms of the Form 6, or after it has expired, can result in no entitlement to commission at all — even where the agent demonstrably introduced the buyer.

The Legal Requirements Governing Commission in Queensland

The Form 6 appointment — the foundation

Queensland agents must be formally appointed in writing before they are entitled to sell a property or charge commission. This is done using the prescribed Appointment of Property Agent (Form 6) under the Property Occupations Act 2014 (Qld).

Without a valid appointment, an agent cannot legally claim commission for a sale. This is not a technicality. The POA makes clear that the written appointment is a precondition, not a formality. An agent who begins working a listing — taking photographs, writing copy, holding open homes — before a valid Form 6 is signed and returned is working at their own risk.

Queensland agents can charge any fee they see fit, provided it is clearly outlined in the Form 6 Appointment of Real Estate Agent. The contract must state the exact commission structure — whether percentage or fixed fee — and whether GST is included. The commission amount cannot change after the service agreement has been signed.

The Act also distinguishes between the different commission-related requirements for the appointment document. If the agent receives any rebate, discount, or commission connected to marketing expenses — for example, from a portal or publisher — the appointment must disclose the amount or the method for calculating it. This requirement catches agents who have commercial arrangements with portal providers or photography studios and pass costs on to vendors at a marked-up rate.

When commission is earned

The Form 6 should set out the exact event that “earns” the commission. This could be on formation of an unconditional contract, on settlement, or another clear milestone. If the Form 6 says commission is earned on an unconditional contract, agents need to be aware of when a contract becomes unconditional in light of cooling-off provisions and special conditions. A contract that collapses before settlement — due to a failed finance condition or a vendor exercising a right to rescind — may or may not trigger a commission entitlement depending entirely on how the trigger event is defined in the appointment.

Under an exclusive or sole agency arrangement, the agent is usually entitled to commission if the property sells during the exclusive period — even if the vendor or another agent introduces the buyer. This is one of the most contested commission scenarios in Queensland practice, and the one most likely to produce a complaint to the Office of Fair Trading if the vendor was not clearly advised at the time of signing.

The deregulation changes — what the POA actually removed

The 2014 reforms made three specific changes directly affecting commission. First, the cap on commission was removed, allowing agents to negotiate any rate with their clients. Second, commission disclosure requirements to buyers were removed — agents are no longer required to disclose to the buyer how much commission they receive from the seller. Third, the Act allowed commission to be charged on beneficial interest sales, where agents sell to close family members, friends, or business associates.

The removal of the buyer disclosure requirement was significant. Under the old PAMDA framework, agents had to disclose the commission amount to the buyer before exchange. That requirement was abolished when the POA commenced. However, agents must still disclose beneficial interest relationships and remain bound by the conduct standards in the Property Occupations Regulation 2014, including the conflict-of-duty provisions that apply when an agent has a personal interest in the transaction.

The “no standard REIQ commission” warning

There is continuing feedback from the community that real estate agents are referring to an “REIQ approved” commission. Referring to a standard “REIQ” or “prescribed” commission when speaking to clients can constitute misleading and deceptive conduct. This warning from the REIQ itself has practical weight. An agent who quotes a commission and implies it is a regulated or industry-mandated rate — when it is in fact their own negotiated fee — may be in breach of the Australian Consumer Law, which applies to real estate services in Queensland under section 7 of the POA framework.

What Queensland Agents Need to Know About Commission

Structuring the conversation with vendors

The deregulated market has made the commission conversation more commercially significant than it was under the old schedule. Vendors who have done any research will arrive with a number in mind. Agents who can explain the structure of their fee — what it covers, what it does not, and why the rate reflects the service being delivered — will convert more listings than those who simply quote a percentage and wait for a reaction.

It is common to agree on marketing expenses separately from commission. The appointment should itemise the marketing approved, the cost, who pays, and whether those costs are payable even if the property does not sell. Many disputes between agents and vendors arise not from the commission itself but from ambiguity about who is responsible for marketing costs if the property is withdrawn from sale. Get this in writing — it is a Form 6 requirement, not optional.

Tiered and incentive-based structures have grown in use because they create a visible alignment between agent effort and vendor outcome. Agents can be paid based on an incentive-based or tiered commission structure, where the commission rate is dependent on the performance of the agent, motivating them to put more effort into achieving a higher sale price. If you offer this structure, explain precisely how the tiers work, at what price points they activate, and how the final commission is calculated — a vendor who feels surprised at settlement is a complaint waiting to happen.

Conjunction sales and commission splits

In a conjunction sale, the listing agency and a separate selling agency collaborate to effect the sale. The commission paid by the vendor does not increase — the agreed rate in the Form 6 remains fixed. The two agencies must agree on how the commission is split between them, and that agreement must be documented. Neither agency can claim a split from the vendor’s commission without the other agency’s knowledge. Agents working conjunction deals for the first time should confirm the split arrangement in writing with the listing agent before introducing a buyer, not after exchange.

The effective cause test

Whether an agent is the effective cause of a sale remains one of the more contested areas of Queensland commission law. The POA provides guidance on what constitutes completing a sale, but disputes arise when a vendor privately sells to a buyer introduced by the agent after the exclusive agency period has expired. The Act illustrates this with scenarios: if the owner appoints an agent to sell and a buyer purchases, the question of who is the effective cause of the sale determines the right to commission. Agents should understand their agency period clearly, make note of every buyer they introduce during the exclusive term, and ensure the Form 6 clearly defines the period and the commission trigger.

Common mistakes that cost agents their commission

The most common errors that result in a lost commission entitlement are: signing a Form 6 after commencing marketing activity; failing to clearly define the commission trigger event (unconditional contract versus settlement); leaving marketing cost obligations ambiguous; and failing to keep records of buyer introductions during the exclusive period. Each of these mistakes can be avoided with a systematic approach to appointment documentation.

In accordance with the Property Occupations Act 2014, agents must express the commission payable. Agents must specify a commission amount that is GST inclusive and specify when commission is payable. Failure to comply with these requirements does not simply expose the agent to a complaint — it may render the commission clause in the appointment void or unenforceable.

What This Means for Queensland Agents

Real estate commission in Queensland is fully negotiable, unregulated in rate, and entirely dependent on a compliant written appointment for its legal enforceability. The deregulation introduced by the Property Occupations Act 2014 created genuine commercial freedom, but it also transferred the risk of poor documentation from a legislated schedule to the agent’s own paperwork.

The practical implications are these: negotiate your rate clearly and explain the rationale, document the commission structure in the Form 6 before performing any services, specify whether the trigger is an unconditional contract or settlement, disclose all marketing rebates and related arrangements, and never imply to a client that any rate is mandated by the REIQ or any other body. Commission rates across Queensland range from around 1.8% in high-turnover inner-city suburbs to 3% or more in regional markets — none of those figures carries legislative weight, and any agent quoting them as “standard” is on uncertain ground.

Commission disputes are among the most common complaints received by the Office of Fair Trading. Almost all of them trace back to an appointment that was ambiguous, incomplete, or signed after the work had already begun. The rate matters far less than the clarity of the document. Get the Form 6 right, define the trigger, and the commission will look after itself.