Here's the awkward truth about researching real estate agent commission: almost every website that quotes you a number gets paid when you hire an agent. The comparison sites, the "find an agent" services, the lead-gen pages that rank at the top of Google — they're not neutral. So before you sign anything, here's the straight version, with the sourcing made plain.
The first thing to know is that there is no official commission rate in Australia. It's completely deregulated — no government body sets it, caps it, or publishes an average. Queensland was the last state with a legal cap, and it scrapped that back in December 2014. What that means for you is simple and powerful: commission is whatever you and the agent agree to. It is always negotiable.
The short version
- Expect around 2.0% to 2.5% in the capital cities, more in the regions. The national average sits around 2.3% to 2.6% plus GST.
- Add 10% GST on top. A "2%" quote is really 2.2% once GST is on it. Always ask whether a rate is inclusive or not.
- Marketing is separate and you pay it. Budget another $500 to $10,000 depending on your state and the campaign.
- It's negotiable — genuinely. There are no minimums or maximums. Comparing two or three agents is your biggest lever.
- A 0.5% difference is real money: on an $800,000 sale that's about $4,400 including GST.
Average real estate agent commission by state in 2026
One honest caveat first. Because commission is deregulated, there's no ABS or government dataset to point to. The figures below are drawn from agent transaction data — the best available — and you should treat them as typical ranges, not gospel. Your suburb, your price point and how hard your home is to sell will move the number more than your state does.
| State / Territory | Typical average | Range (metro → regional) |
|---|---|---|
| NSW | ~2.3% | 1.8–2.5% metro · 2.5–3.5% regional |
| VIC | ~2.2% | 1.6–2.5% metro · 2.5–3% regional |
| QLD | ~2.7% | 2–2.5% urban · ~3% regional |
| SA | ~2.25% | 2–2.75% metro · 2.75–3% regional |
| WA | ~2.5–2.7% | 2–2.5% Perth · 2.5–3.5% regional |
| TAS | ~3.0% (highest) | 2.5–3% Hobart · 3–3.5% regional |
| ACT | ~2.5–3% | 2.5–4% outer |
| NT | ~2.5–4% | thin data — confirm locally |
| National | ~2.3–2.6% (typically 2.0–3.0%), plus GST | |
Why the states differ
It comes down to competition. In Sydney, Melbourne and Adelaide there are agents on every corner, and that competition pushes rates down — capital-city averages dip well below 2% in the sharpest suburbs. In a regional town with two agencies and a handful of sales a month, there's no pressure to discount and the cost of servicing each sale is higher, so rates climb past 3%. Queensland and Tasmania sit higher than the southern capitals for exactly that reason.
Here's the part most sellers miss: the gap between metro and regional within your own state is usually bigger than the gap between states. A 0.9% spread between a competitive inner suburb and a quiet regional town is $9,000 on a million-dollar sale. The state average is a starting point, not your number.
How commission is structured
There are three models you'll be offered, and the difference between them matters more than a few tenths of a percent.
- Flat percentage (most common): one rate applied to the whole sale price. Simple, but the agent earns the same marginal rate whether they get you $800,000 or a stretch result of $860,000.
- Tiered or incentive commission (the one to ask for): a base rate up to a target price, then a higher rate on every dollar above it — say 1.9% up to $800,000, then 3% on anything beyond. This is the structure worth requesting, because it pays the agent extra precisely for beating the target. For once, the agent only earns more when you do.
- Flat-fee agents: a set dollar amount regardless of price. These can work out cheaper on a high-value home, but check what marketing and service you're giving up to get the lower number.
You'll also see "no sale, no fee" offers. They're fine, but read the trigger carefully — under many agreements the commission becomes payable the moment an unconditional contract is exchanged, not when the sale settles, so it can be owed even if settlement later falls over.
It's negotiable — here's where your leverage is
Commission is not regulated anywhere in Australia. Under laws like NSW's Property and Stock Agents Act 2002, every commission must be negotiable and spelled out in writing before the agent lifts a finger. So negotiating isn't cheeky — it's the expected part of the conversation.
You have more leverage when your property is high-value (the agent still earns a healthy fee at a lower percentage), when the market is hot and homes are selling fast, and when you've got two or three agents competing for your listing. You have less leverage in a red-hot metro market where good agents have more listings than they can handle, or when your home is unusual and genuinely hard to sell.
The single most effective thing you can do is tell each agent, honestly, that you're speaking to others. Competition does the negotiating for you.
What commission does — and doesn't — cover
Commission pays for the agent's selling service: strategy, open homes, their buyer database, the negotiation and managing the sale through to settlement. It almost never includes the costs below, which you pay separately on top.
| Cost (separate from commission) | Typical 2026 range |
|---|---|
| Marketing / advertising | $500–$10,000 (state-dependent; roughly 0.5–1% of value) |
| Premium portal listing (realestate.com.au / Domain) | up to ~$4,000–$5,000+ in premium suburbs |
| Auctioneer fee | $200–$1,000 |
| Styling / staging (optional) | $1,000–$8,000 |
| Conveyancing / legal | $700–$2,500 |
Marketing is the one that catches people out. The big-ticket item is usually the listing fee on the major portals, which is priced by suburb and has been climbing — REA Group's (realestate.com.au) portal pricing has drawn ACCC scrutiny over its market power. Photography, a signboard, copywriting, a floorplan and video stack on top. One firm rule: ask whether you're being billed the agency's actual cost or a marked-up figure, and insist on an itemised marketing quote. You'll also want a conveyancer or solicitor to handle the legal side of the sale, just as a buyer does.
The GST trap
By law, 10% GST is added to the commission — not to your sale price, just to the agent's fee. This is where quotes get slippery, because an agent can quote the rate either way. A "2.0%" rate is really 2.2% once GST is on it. On a $1.2 million sale, a 2.5% commission is $30,000, and GST turns that into $33,000. Before you compare two agents, make sure you're comparing like with like: always ask, "Is that plus GST or inclusive?"
What it actually costs: the dollar reality
Percentages feel abstract until you put them in dollars. Here's what the commission (plus GST) really comes to, and why shaving half a percent is worth the conversation.
| Sale price | Rate | Commission | + GST | Total to agent |
|---|---|---|---|---|
| $800,000 | 2.0% | $16,000 | $1,600 | $17,600 |
| $800,000 | 2.5% | $20,000 | $2,000 | $22,000 |
| $1,000,000 | 2.3% | $23,000 | $2,300 | $25,300 |
That half-a-percent difference on an $800,000 home is $4,400 including GST. It's the clearest argument there is for comparing a couple of agents before you sign — and for not fixating on commission alone, because the gap between an average negotiator and an excellent one can dwarf it.
When and how you actually pay it
You won't write the agent a cheque. Commission is almost always deducted from the sale proceeds at settlement — the buyer's money flows to your conveyancer, who pays the agent and any marketing owing, then remits the balance to you. If you're selling an investment, remember the sale can also trigger capital gains tax, so factor that into your net figure alongside the commission. (Selling your main residence is generally CGT-exempt.) For the mechanics of how the money moves on the day, our guide to property settlement walks through it.
Two things in the agency agreement decide who gets paid and when:
- The agreement type. An exclusive agency means one agent is owed commission even if you find the buyer yourself. A sole agency lets you sell privately without paying. An open (general) listing uses several agents and only the one who sells gets paid.
- The cooling-off on the agreement itself. This is separate from the buyer's cooling-off period. In NSW you can revoke an agency agreement until 5pm the next business day after signing, with nothing to pay. Victoria has no cooling-off on the sales authority, and other states vary — so read it before you sign, not after.
How to negotiate without overpaying
- Compare two or three agents on the same brief. It's the only lever that reliably works, and it costs you nothing.
- Ask for a tiered structure so the agent earns a higher rate only on the dollars above your target — you're paying them to beat expectations, not just meet them.
- Be wary of a suspiciously low rate. It often signals a thin marketing budget or a list-it-and-forget-it approach. A great negotiator who charges 0.25% more can recoup that gap many times over in the final sale price.
- Get everything in writing: the rate, whether it includes GST, exactly what marketing is covered versus extra, the agreement type and its term.
- Judge the net result, not the headline rate. What lands in your account after fees is the only number that matters.
Frequently asked questions
What is the average real estate agent commission in Australia in 2026?
Around 2.3% of the sale price plus GST, nationally. In the capital cities it's typically 2.0–2.5% (and below 2% in the most competitive suburbs), rising to 2.5–3.5% in regional areas. Tasmania and Queensland tend to sit highest, while Sydney, Melbourne and Adelaide are among the lowest because of agent competition. There's no official rate — commission is deregulated — so treat these as typical ranges, not fixed figures.
Is real estate commission negotiable?
Yes, completely. There are no legal minimums or maximums anywhere in Australia, and laws like NSW's Property and Stock Agents Act 2002 require commission to be negotiable and disclosed in writing before any service begins. The most effective way to negotiate is to compare two or three agents and let them know you're talking to others — competition does most of the work for you.
Does agent commission include GST?
Not always — and that's the trap. By law, 10% GST is added to the agent's commission (just the commission, not your sale price). A quoted "2.0%" rate is really 2.2% once GST is applied. Agents can quote either way, so always ask whether the rate is inclusive or exclusive of GST before you compare.
Does commission cover marketing and advertising?
No. Marketing is almost always separate and paid by you, typically $500 to $10,000 depending on your state and campaign — roughly 0.5–1% of the property's value. The biggest cost is usually the premium listing fee on realestate.com.au or Domain, with photography, signboard, copywriting and video on top. Ask for an itemised marketing quote and check whether you're billed the agency's cost or a marked-up figure.
How much commission would I pay on an $800,000 house?
At a 2.0% rate, $16,000 plus $1,600 GST — about $17,600. At 2.5%, it's $20,000 plus $2,000 GST, or $22,000. That half-a-percent difference is roughly $4,400 including GST, which is exactly why comparing agents before you sign is worth the effort.
When do you pay the real estate agent's commission?
You don't pay it up front. Commission is deducted from your sale proceeds at settlement — the buyer's funds go to your conveyancer, who pays the agent and any marketing still owing, then sends you the balance. Under many agency agreements the commission legally becomes payable once an unconditional contract is exchanged, even though it's physically paid at settlement.
What's the difference between an exclusive and an open listing?
With an exclusive agency you appoint one agent who is owed commission even if you find the buyer yourself during the term. A sole agency is similar but lets you sell privately without paying. An open (or general) listing uses several agents, and only the one who actually sells the property gets paid. Exclusive agreements are the most common and usually come with a stronger marketing commitment.
Can you sell a house in Australia without paying commission?
Yes — private-sale and flat-fee platforms let you sell without a traditional percentage commission, and a sole agency agreement lets you sell privately alongside an agent. You'll still pay for marketing, conveyancing and a portal listing, and you take on the negotiation and buyer management yourself. For many sellers a good agent more than earns their fee through a higher sale price, but on a straightforward sale in a hot market, going it alone can save real money.
