Who can be paid commission only?
Commission-only pay is allowed only where an award or enterprise agreement permits it. For real estate, that is the Real Estate Industry Award 2020 (MA000106). Clause 16.7 limits it to employees in property sales or commercial, industrial or retail leasing, classified at Real Estate Employee Level 2 or higher. Residential property managers are outside the clause, because it covers sales and commercial leasing work only.
Every condition must be met at once. You need a written agreement, a real estate licence or registration, at least 12 consecutive months in sales or commercial leasing at Level 2 or above (or running your own agency) in the past three years, and you must be 21 or older. Casuals, part-timers, juniors, trainees and Level 1 associates cannot be put on commission only.
The income threshold (MITA)
The award calls the income test the Minimum Income Threshold Amount, or MITA. You meet it if, in any 12 consecutive months within the three years before signing, your total pay including commission and bonuses reached at least 125% of the annual minimum rate for your classification. Statutory super does not count towards it.
Using the award rates in force from 1 July 2026, 125% of the Level 2 annual minimum of $58,193 works out to about $72,741. The employer may rely on payment summaries, payslips and commission statements, and can ask you for a statutory declaration confirming they are accurate. If you have run your own real estate business in the past three years, you do not need to meet the MITA to start.
What the written agreement must cover
The agreement must say you will be paid on commission only and set out how your commission is calculated. The employer must give you a signed copy. Any later change to your commission must be recorded in a new written agreement. If you move from a wage to commission only, the new agreement cannot carry over deductions from your old arrangement.
The award sets a floor of 31.5% of the employer's gross commission for each sale or commercial lease you were responsible for. Gross commission means what the client pays the agency, less GST and conjunctional agent fees. Where several staff handle parts of one deal, each gets at least that floor in proportion to the agreed value of their part. Anything above 31.5% must be written down too.
What happens if earnings fall short?
Your gross income must be reviewed every year, with the first review due within 12 months of the arrangement starting. If the review shows you earned less than the MITA for that year, the commission-only arrangement must end. You then have to be paid under the award's standard rules, with at least the minimum wage for your level.
Falling short does not end your job automatically. You stay an employee under the Fair Work Act, and the REIQ warns that sacking an agent for missing the threshold without a fair process could be found harsh, unjust or unreasonable. An agency that keeps someone on commission only after a failed review risks civil penalties and back pay for wages, super and leave. To return to commission only, your three-year look-back period restarts from the date the arrangement ended.
Pay
AUD a year, before tax. Refer to the Real Estate Sales salary guide for figures from live adverts.
What you need
- Right role and levelProperty sales or commercial, industrial or retail leasing, classified at Real Estate Employee Level 2 or higher.
- Licence or registrationYou must hold a real estate agent's licence or be registered or permitted to work as a salesperson under your state's real estate law.
- 12 months' experienceAt least 12 consecutive months at Level 2 or above in sales or commercial leasing, or running your own agency, within the past three years.
- Age 21 or overJuniors cannot be employed on commission only.
- Full-time employmentCasual, part-time, trainee and Level 1 employees are excluded.
- Income threshold metProof of earning 125% of your classification's annual award rate, excluding statutory super, over 12 consecutive months in the past three years.
- Signed written agreementA written commission-only agreement setting out how commission is calculated, with a signed copy given to you.
How to get there
- Before startingGet licensed or registeredComplete your state's entry qualification and get a salesperson registration or agent's licence.
- Year 1Work on a wage plus commissionStart as a Level 1 associate on the award minimum, usually with commission on top under a clause 16.1 agreement.
- Year 1-2Reach Level 2Work as a Level 2 representative or higher in sales or commercial leasing.
- Year 2-3Build 12 months over the thresholdEarn 125% of your annual award rate across 12 consecutive months and keep payslips and commission statements.
- Once eligibleSign a commission-only agreementAgree the commission split in writing, at no less than 31.5% of the agency's gross commission per deal.
- Every 12 monthsPass the annual reviewYour gross income is checked each year. If it falls below the threshold, you go back onto award wages.
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Questions people ask
Can a new agent start on commission only?
No. The award requires at least 12 consecutive months at Level 2 or above in the past three years, plus proof you earned 125% of your award rate. New entrants start on at least the award minimum, which is $52,551 a year for a Level 1 in their first year from 1 July 2026.
How much is the commission-only income threshold in 2026?
It is 125% of the annual award rate for your classification, excluding statutory super. Using rates from 1 July 2026, that works out to about $72,741 at Level 2, $80,015 at Level 3 and $83,675 at Level 4.
Do commission-only agents get paid leave?
Yes. Leave under the National Employment Standards is paid at no less than the award minimum wage for your level. If your agreement gives you more than the 31.5% minimum split, the employer can treat leave pay as a debit against that extra share, but only if the agreement says so in writing.
Which award entitlements do commission-only agents lose?
Clause 16.7 switches off the award's minimum weekly wage, most allowances including excess travel, overtime and annual leave loading. You keep the minimum 31.5% commission share, NES leave and the dispute process.
Can my employer sack me if I miss the threshold?
Missing the threshold ends the commission-only arrangement, not your job. You stay an employee under the Fair Work Act, so dismissal needs a valid reason and a fair process. The REIQ notes that failing to move an agent onto a compliant pay structure may make a dismissal harsh, unjust or unreasonable.
Can property managers be paid commission only?
No. Clause 16.7 covers only property sales and commercial, industrial or retail leasing staff. Residential property managers must receive at least the award minimum for their level, though they can earn commission or bonuses on top.
