Benchmark · Updated 18 May 2026
Sales commission, property management fees, letting fees and ancillary charges across Sydney, Melbourne, Brisbane, Perth, Adelaide, the smaller capitals, and regional Australia. Includes tiered vs flat structures and when commission reduction makes commercial sense.
Sales side
Commission rates are negotiable and vary by suburb, agency brand, vendor profile, and current market. The ranges below are the observed band of arm's-length transactions in 2025–2026.
| Market | Full range | Typical | Notes |
|---|---|---|---|
| Sydney | 1.8% – 3.0% | 2.0% – 2.5% | Higher median sale price ($1.4m+) pulls effective rates lower in absolute terms. Eastern suburbs and Lower North Shore often quoted at 1.8–2.2%; outer west typically 2.2–3.0%. |
| Melbourne | 1.6% – 2.5% | 1.8% – 2.2% | Lowest commission rates of the capitals — driven by high median price and intense agent competition in inner and middle ring. Outer suburbs typically 2.0–2.5%. |
| Brisbane | 2.2% – 3.0% | 2.5% – 2.8% | Strong middle ground. Inner ring 2.2–2.5%; middle and outer rings 2.5–3.0%. Tiered commission structures common. |
| Perth | 2.0% – 2.9% | 2.2% – 2.5% | Recovered from extended downturn — fee resistance lower than 2019–2022 era. Coastal and northern suburbs sit at lower end of range. |
| Adelaide | 2.5% – 3.5% | 2.7% – 3.0% | Highest typical commission rates of the mainland capitals. Reflects lower median sale price (commission needs to be a higher % to generate viable fee revenue). |
| Hobart | 3.0% – 4.0% | 3.2% – 3.5% | Smaller market, longer marketing campaigns, fewer agents — supports higher rates than mainland capitals. |
| Canberra | 2.2% – 3.0% | 2.5% – 2.7% | Relatively narrow range; auction culture and high median price keep effective rate moderate. Many agencies use tiered structures. |
| Darwin | 2.5% – 3.5% | 2.8% – 3.2% | Small market, fewer competing agents. Commission rates similar to Adelaide. |
| Regional NSW / VIC / QLD | 2.5% – 3.5% | 2.8% – 3.2% | Wider territories, fewer comparable sales, longer marketing campaigns. Rural and lifestyle blocks regularly 3.0–4.0%. |
| Rural & lifestyle | 2.5% – 4.0% | 3.0% – 3.5% | Specialist stock-and-station / rural agents charge higher rates reflecting longer campaigns (3–9 months) and narrow buyer pool. |
Sales commission rates are negotiable in every Australian jurisdiction (no regulated minimum or maximum). All rates exclude GST unless stated.
Property management side
Management fees are charged as a percentage of rent collected. Different agencies quote inc-GST and ex-GST — always check the basis. Tight rental markets (Perth, Sydney since 2023, parts of Brisbane) have pushed PM fees up over the last three years.
| Market | Mgmt fee range | Typical | Notes |
|---|---|---|---|
| Sydney | 7.0% – 10.0% | 7.7% – 8.8% (inc GST) | Highest PM fees of the capitals. Letting fee 1.0–2.0 weeks rent (typically 1 week). Routine inspections quarterly. |
| Melbourne | 5.5% – 8.0% | 6.6% – 7.7% (inc GST) | Lower mgmt fee than Sydney but higher letting fee in some agencies (1.5–2.0 weeks). Inspections quarterly to six-monthly. |
| Brisbane | 7.0% – 9.5% | 8.25% – 9.0% (inc GST) | Letting fee 1–2 weeks rent. Routine inspections quarterly. Lease renewal fees common ($50–$150). |
| Perth | 7.0% – 10.0% | 8.5% – 9.9% (inc GST) | Tight rental market has pushed fees up over 2023–2025. Letting fee 1.5–2.5 weeks rent (Perth runs higher letting fees than other capitals). |
| Adelaide | 7.5% – 10.0% | 8.8% – 9.9% (inc GST) | Higher % management fee reflecting lower rent base. Letting fee typically 1.5 weeks rent. Quarterly routines. |
| Hobart | 7.0% – 10.0% | 8.8% – 9.9% (inc GST) | Smaller market; less competitive pressure on PM fees. Letting fee 1.5–2.0 weeks rent. |
| Canberra | 6.5% – 8.5% | 7.7% – 8.25% (inc GST) | Government-tenant share supports more stable rents; ACT-specific tenancy rules add cost to managing renewals and inspections. |
| Darwin | 8.0% – 11.0% | 9.0% – 10.0% (inc GST) | Highest typical PM fees of the capitals — driven by smaller market and turnover risk. |
| Regional | 7.0% – 10.0% | 8.0% – 9.0% (inc GST) | Lower density forces more travel time per inspection; PM fees similar to capitals but inspection/travel fees additional in some regions. |
Beyond the headline rate
Headline commission and management fees are just the starting-point. Ancillary fees and disbursements add up — and transparent disclosure on the agency agreement is increasingly expected by both vendors and landlords.
Charged when a new tenancy is signed. Covers advertising, viewings, application processing, lease preparation, and ingoing inspection. Typically 1 week (Sydney, Melbourne, Brisbane) to 2 weeks (Perth, Adelaide, regional).
Charged when an existing tenancy ends and a new tenant is placed. Sometimes the same as the initial letting fee; sometimes discounted for the existing landlord.
Charged when an existing tenant renews their lease. Covers renewal paperwork, rent review, condition check. Some agencies waive this; many charge a flat fee.
Charged per routine inspection (typically quarterly). Some agencies absorb this into the management fee; others charge separately. Disclose upfront on the management agreement.
Detailed photographic + written condition report at lease commencement and end. Critical for bond claim defence. Many agencies use third-party inspection software (Inspection Manager, Routine Inspect) with per-report costs.
Charged when the agency appears on the landlord's behalf at the state tribunal for tenancy disputes (bond, repairs, termination). Hourly rate beyond a base appearance fee.
Sales-side. Vendor-paid campaign covering REA & Domain premium upgrades, signboard, professional photography, floor plan, copywriter, drone, video, social media boost. Inner-city Sydney/Melbourne campaigns regularly exceed $10k.
Separate from VPA — the licensed auctioneer's fee on auction day. Some agencies bundle into commission; many bill separately as a vendor disbursement.
Some agencies charge a monthly admin fee covering postage, statements, bank fees, water/utility coordination. Increasingly bundled into the management fee in 2024–2026.
How to structure commission
The structure of the commission can matter as much as the headline rate. Four common structures, each with different incentive properties.
The simplest structure — agency charges X% of sale price regardless of price achieved. Clean, easy to explain, but doesn't give the vendor any reason to push the agent towards a stretch outcome.
Pros
Simple, predictable, easy to compare.
Cons
Agent earns same % at $900k as $1.1m — limited incentive to push past the vendor's reserve.
A base rate up to a reserve price, then a higher rate on the upside. Example: 2.0% up to $900k, then 5.0% on the portion above. Aligns the agent and vendor on getting maximum sale price.
Pros
Strongly incentivises stretch outcomes. Vendors typically prefer this structure when negotiating.
Cons
Reserve setting becomes a negotiation. Agent has incentive to under-quote the reserve so they earn the higher tier on more of the sale.
Fixed dollar commission regardless of sale price — e.g., $15,000 flat. Common for premium fixed-fee disrupter brands and very high-end properties where % commission would be excessive.
Pros
Predictable cost. Removes percentage-vs-price negotiation.
Cons
Vendor and agent have no shared upside on stretch results. Agent's incentive is to sell quickly, not necessarily at the top of the range.
A lower base commission, plus a bonus if specified conditions are met (e.g., sold within 30 days, sold above $X). Useful when vendor and agent disagree on expected price.
Pros
Flexible, can be tailored to vendor priorities.
Cons
Complex to document. Disputes more common at settlement when bonus conditions are interpreted differently.
When (and when not) to discount
There are legitimate reasons to reduce commission — and one very common trap to avoid.
Selling for a vendor who has already paid you a commission in the last few years, or who has been referred by a happy past client, is a legitimate basis for a small (5–10%) commission reduction.
Vendor instructing you on 2+ properties simultaneously, or a developer with multiple lots, can warrant a sliding scale — full rate on the first, reduced on subsequent.
If you have a confirmed buyer (typically from your database or buyer's agent network) and the campaign can be very short, a modest reduction reflects lower marketing and time cost.
Reducing commission purely to win a competitive listing pitch is a trap — discounts compound across your area as vendors talk, and your service standard often unconsciously drops to match the lower fee. Win on service, not price.
Vendors compare your ‘2.5%’ against a competing ‘2.5% + GST’ without realising they're not comparing like for like. Always quote inc-GST or make ex-GST clear in bold — clarity wins, surprises lose.
A 2.5% headline rate after fee resistance and discounting routinely realises 2.1–2.2%. Track your gross commission divided by total sales pipeline value quarterly — that's your actual rate.
Landlord complaints to Fair Trading / CAV / OFT spike when fees aren't disclosed before the management agreement is signed. List every fee — letting, re-letting, lease renewal, inspection, tribunal — on the agreement in dollar or weeks-of-rent terms.
Funding the vendor's marketing campaign out of your own pocket is a cash-flow killer and trains vendors to expect it from your next listing. Vendor-paid is the industry standard — there are legitimate ways to support marketing spend (e.g., deferred VPA, marketing finance partners) without absorbing the cost yourself.
Two main drivers: median sale price and agent density. Sydney and Melbourne have very high medians ($1.4m+ and $900k+ respectively), so even at 2.0% the dollar commission is substantial — agents accept a lower % rate. Adelaide and Hobart have lower medians but similar marketing campaign costs, so they need a higher % to make the fee economically viable. Agent density (more agents = more price competition) pulls Melbourne rates down further.
Yes — there are no statutory or regulated commission rates in Australia (commission deregulation occurred decades ago). Every commission is negotiated between agent and vendor and documented in the agency agreement / appointment to act. Vendors can and should ask for rate justification, but should also recognise that the lowest rate often correlates with the lowest service standard.
1 to 2 weeks rent is the standard range. Sydney and Brisbane typically 1 week. Melbourne, Perth, Adelaide and regional typically 1.5–2 weeks. The letting fee covers advertising the property, conducting viewings, processing applications and reference checks, preparing the lease, and the ingoing condition report. Re-letting fees (for the same property to a new tenant) are sometimes discounted to 0.5–1 week.
Yes — real-estate agency commission is a taxable supply for GST purposes. Most agencies quote commission rates as 'plus GST' on their listing presentation. Some quote inclusive — check carefully. The same applies to PM management fees, letting fees and inspection fees.
Almost always at settlement, deducted from the sale proceeds by the conveyancer/solicitor and remitted to the agency via the trust account. The agency agreement typically specifies the trigger event (settlement, or specified earlier event). Cash payment of commission before settlement is rare and procedurally awkward.
Annually as a minimum, ideally aligned to your end-of-financial-year planning. Track your actual realised commission rate (gross commission ÷ total sales pipeline value), your management fee yield (PM revenue ÷ portfolio rent), and how those compare to local market benchmarks. If you're consistently 0.5+ percentage points below the local benchmark, you're either under-pricing your service or over-discounting to win listings — both are fixable.
OneBookPlus reports realised commission, PM fee yield and ancillary fee revenue per agent, per branch, per period — so you can benchmark your agency against this guide and act on the gaps. Free to start, AUD billing.
Last reviewed and updated: by Bishal Shrestha
About the author
Founder & CEO, OneBookPlus
Bishal has over a decade of experience in digital marketing, web development, and small business consulting across Australia. He has benchmarked sales commission, PM management, and letting fees across Sydney, Melbourne, Brisbane, Perth, and Adelaide agencies.
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