Tallyroo.

Your quote · NSW agreement rules

Real estate agent commission

Put in the commission you were quoted and see what it costs with GST, flat or tiered, and what half a percentage point is worth.

Incentive tier, if you were offered one

Leave both at zero for a flat rate.

What the agent costs

Commission, including GST

$21,780

2.42% of the price all in — not the 2.2% on the quote, once GST is added.

The working

Commission before GST$19,800
GST$1,980
Marketing$4,500
Total to sell$26,280
What negotiating is worth

A comparison of the commission including GST at the rate quoted, against the same commission with half a percentage point taken off the base rate.

Half a percentage point off is worth $4,950 to you.

The rate here is your own input — no average is asserted. Agreement rules quoted are the NSW Property and Stock Agents Act 2002; other states have their own. General information only — not legal advice.

Next: the whole sale → Cost of selling a house

The rules in the agreement you sign (NSW)

In New South Wales no law sets this rate. The Property and Stock Agents Act 2002 defines commission, says when an agent is entitled to it and requires it to be disclosed — but never fixes it. Other states have their own agents Acts, which this page has not read, so we publish no average, and the agreement rules below are the NSW Act’s.

“Effective cause” is the clause that catches people

An exclusive agency agreement is defined in the Act as one entitling the agent to commission on the happening of an event whether or not the agent is the effective cause of it, and whether or not you are. Read that literally, because it is meant literally: if the property sells during the agreement period, the commission is generally payable even where you produced the buyer yourself.

The time to deal with it is before signing. If there is anyone already circling — a neighbour, a tenant, the person who missed out last time — ask for them to be named in the agreement as an exclusion, so the terms you sign say so.

You have until 5 pm the next business day

Every residential or rural agency agreement in NSW carries a cooling-off period. It begins when the agreement is signed — and where several owners sign, when the last of them does — and it ends at 5 pm on the next day that is a business day or a Saturday. To use it you serve the agent written notice, signed by you, saying you rescind.

It can be extended by the agreement or by the agent in writing, and it can be waived entirely, but only on a strict condition: the agent must have given you the proposed agreement and the approved consumer guide at least one business day earlier, and you must have signed the approved waiver form. Being handed a waiver alongside the agreement itself does not satisfy that.

Marketing is a separate bill, and usually not refundable

The commission is contingent — no sale, no commission. Marketing generally is not. Photography, floor plans, portal listings, signboards and any auction costs are typically payable whether or not the property sells, and whether or not you are happy with the campaign. That is why the calculator keeps them on their own line instead of folding them into the rate.

Two quotes with the same percentage can differ by thousands once the campaign is priced, so compare the total, not the rate.

Frequently asked questions

What is the average real estate commission in Australia?
There is no official one we can point you to, and that is not a dodge. In New South Wales the Property and Stock Agents Act 2002 defines commission, governs when an agent is entitled to it and requires it to be disclosed, but nowhere sets a rate or a cap. Any national average you read is somebody's sample, not a schedule. The useful number is not the average — it is what your own quoted rate costs once GST is on it, which is what the tool computes.
Is GST charged on agent commission?
Yes, and whether the quote already contains it changes the bill by a tenth. A "2.2%" quote can mean 2.2% plus GST or 2.2% including it, and on a $900,000 sale those are $21,780 and $19,800 respectively. Ask which one you were given, set the toggle to match, and compare quotes on the inclusive figure — that is the money that actually leaves the settlement.
How does a tiered or incentive commission work?
A base rate applies up to a target price and a much higher rate applies to everything above it — "2.5% up to $700,000, then 10% of anything over". The idea is to pay the agent for beating the target. Read it carefully: on a $900,000 sale that structure costs $37,500 before GST, against $22,500 on a flat 2.5%. It can still be worth it if the incentive genuinely lifts the price, but the marginal rate is where sellers misjudge the total.
Can I owe commission if I find the buyer myself?
Under an exclusive agency agreement, yes. The Act defines it as an agreement entitling the agent to commission on the happening of an event "whether or not the agent is the effective cause", and whether or not the client is. Your neighbour's cousin knocking on the door during the agreement period can still trigger a full commission. If you have a likely buyer already, name them as a carve-out before you sign, not after.
Can I change my mind after signing with an agent?
Briefly, so work out your deadline before you sign rather than after. Sign at the kitchen table on a Friday evening and the window shuts at 5 pm on Saturday. Sign on a Saturday and it runs to 5 pm Monday, since Sunday counts for nothing. Where a couple owns the property jointly, the clock does not start until the second of them signs — so if one signs Thursday and the other Friday, you both have until Saturday. That timetable is the NSW Act's.
What if the agent never gave me a copy of the agreement?
Section 55 makes entitlement conditional: an agent is not entitled to commission or expenses unless the services were performed under a complying written agreement and a copy of the signed agreement was served on you within 48 hours of signing. Do not read that as a free sale, though — the section carries a note that section 55A lets a court or tribunal order the commission recoverable anyway in certain circumstances. It is a reason to get advice, not a loophole to rely on.

Keep tallying

The whole sale

Cost of selling a house

Commission plus conveyancing, mortgage payout and capital gains tax — what actually reaches you.

Open calculator →

If it is not your home

Capital gains tax calculator

The tax on the gain, with the 12-month discount and your marginal rate.

Open calculator →

Sources

  • Definition of commission, entitlement and the 48-hour service rule, the exclusive-agency “effective cause” definition, and the cooling-off period and its waiver — Property and Stock Agents Act 2002 (NSW), sections 54, 55, 59 and 60.
  • No rate is asserted on this page. The NSW Act sets no commission rate, maximum or cap, and the figure used above is the one you entered. Other states’ agents legislation was not read for this page.
  • GST at 10% on the commission, per the ordinary GST treatment of an agent’s services.