Finder’s fees are a common—yet often misunderstood—part of the Australian financial landscape. Whether you’re buying property, arranging a business deal, or securing a loan, you might encounter this fee. But what exactly is a finder’s fee, and how does it work in 2025’s regulatory environment?

What Is a Finder’s Fee?

At its core, a finder’s fee is a payment made to an individual or entity who introduces two parties that go on to complete a financial transaction. The ‘finder’ is not typically involved in the actual transaction process—they simply make the introduction. Finder’s fees are common in sectors like real estate, business broking, finance, and even recruitment.

Example: A mortgage broker connects a borrower with a lender. If the loan settles, the broker receives a finder’s fee from the lender.
Example: In property, an agent may pay a finder’s fee to someone who refers a buyer or seller, provided it complies with state laws.

Finder’s fees can be a flat amount or a percentage of the transaction value, and the terms should always be outlined in a written agreement.

Legal and Regulatory Changes for 2025

The rules around finder’s fees in Australia have tightened over the past few years, and 2025 brings further clarity and consumer protections:

Disclosure Requirements: Under updated ASIC guidelines, any financial product or service provider must fully disclose finder’s fees to consumers at the point of engagement. This includes mortgage brokers, financial advisers, and property agents.
Ban on Secret Commissions: As of January 2025, accepting or offering undisclosed finder’s fees that could influence advice or recommendations is illegal under the Corporations Act reforms. This aims to stamp out conflicted remuneration.
GST and Tax Implications: Finder’s fees are generally subject to GST if the provider is registered, and they must be reported as income. The ATO’s 2025 guidance has reinforced the need for proper documentation and reporting, especially for sole traders and small businesses.

These reforms are designed to protect consumers from hidden costs and ensure transparency in all financial dealings.

When and Where Finder’s Fees Apply

Finder’s fees are prevalent in several Australian sectors:

Real Estate: Some agents offer finder’s fees for buyer or seller referrals, but these must comply with state licensing laws and be disclosed to all parties.
Finance and Loans: Brokers often receive finder’s fees for introducing clients to lenders. Under the Best Interests Duty, these must be disclosed, and the fee structure should not disadvantage the consumer.
Business Transactions: In mergers, acquisitions, or business sales, intermediaries may charge a finder’s fee for connecting buyers and sellers. Clear contractual terms are essential to avoid disputes.
Recruitment: Referral fees (akin to finder’s fees) are common in talent acquisition, especially for hard-to-fill roles.

Case Study 2025: In early 2025, a Queensland mortgage broker was fined for failing to disclose a $4,500 finder’s fee paid by a non-bank lender. The case highlighted the importance of transparency and compliance with ASIC’s updated regime.

Pros, Cons, and What to Watch Out For

Finder’s fees can be mutually beneficial, but there are risks and considerations:

Pros:

Encourages networking and new business opportunities
Can speed up transactions by leveraging trusted introductions
Offers compensation for those who facilitate deals

Cons:

Potential for conflicts of interest if fees are not disclosed
Legal exposure if fees are paid or accepted without proper agreements
Hidden costs for consumers if not transparent

To protect yourself:

Always ask if a finder’s fee is involved before signing any agreement
Request all fees and commissions be disclosed in writing
Ensure any arrangement complies with current ASIC, ATO, and state requirements

Conclusion

Finder’s fees are a legitimate part of many Australian transactions in 2025, but transparency is non-negotiable. Whether you’re referring business, seeking finance, or hiring a broker, demand written disclosure and understand your rights under the latest laws. With regulatory reforms now in force, the days of secret commissions are over—and that’s a win for consumers and ethical business alike.