Commission in Australia 2026: What You Need to Know About Fees and Your Finances

A commission is a fee paid to an individual or business for facilitating a transaction or providing a service. In Australia, commissions are most often seen in sectors such as real estate, financial advice, insurance, and lending. These fees can be structured as a percentage of the transaction value, a flat fee, or a combination of both.

Where Do You Encounter Commissions?

• Real estate: Agents typically earn a percentage of the property’s sale price when helping you buy or sell a home.
• Financial advice: Some advisers may receive commissions from product providers for recommending certain investments or insurance products, although regulations have changed in recent years.
• Insurance and lending: Brokers can receive upfront and ongoing commissions for arranging loans or insurance policies.

While commissions can motivate professionals to deliver results, they can also create potential conflicts of interest if not properly disclosed or regulated.

The way commissions are regulated in Australia has evolved significantly. By 2026, several reforms have been introduced to improve transparency and protect consumers:

Financial Advice

• Product commissions on superannuation and investment products remain largely prohibited, following recommendations from regulatory reviews.
• Commissions on life insurance have been further restricted, with advisers required to provide clearer fee disclosures and demonstrate that commissions do not compromise client interests.

Mortgage Broking

• Ongoing scrutiny of trail commissions continues, with new requirements for brokers to report how commissions are calculated and disclosed to clients.
• Brokers must act in the best interests of their clients and provide clear information about any payments they receive from lenders. Learn more about mortgage brokers.

Real Estate

• State-based reforms have introduced stricter disclosure requirements for agents, including mandatory written agreements that outline commission rates and any potential conflicts of interest.
• Some states have also taken steps to address referral fees and other incentives that could influence agent recommendations.

These changes are designed to make commission structures clearer and help Australians make better-informed decisions.

Commissions can add significant costs to major financial decisions. Here’s how they might affect you in practice:

Buying or Selling Property

When selling a home, the agent’s commission is usually a percentage of the sale price. For example, on a property worth several hundred thousand dollars, the commission can amount to many thousands. It’s important to compare agent rates, understand what services are included, and ask for all fees to be outlined in writing before you sign an agreement.

Using a Mortgage Broker

Mortgage brokers are required to act in your best interests, but their recommendations may still be influenced by the commissions they receive from lenders. Always ask your broker for a breakdown of all payments they receive, and consider whether a broker’s advice aligns with your needs. You can read more about mortgage brokers.

Seeking Financial Advice

If your adviser receives a commission for recommending a product, they must disclose this to you upfront and in writing. You can also ask if a fee-for-service model is available, which may reduce potential conflicts of interest.

Arranging Insurance

Insurance brokers may receive commissions from insurers for placing your policy. While this is common practice, you should always ask your broker to explain how they are paid and whether their recommendations are influenced by commissions. More information is available on insurance brokers.

To ensure you’re making the best financial decisions, consider asking these questions before engaging an agent, broker, or adviser:

• How are you paid for your services?
• Will you receive a commission if I proceed with this product or service?
• Are there any other fees or incentives I should know about?
• Can you provide a written breakdown of all costs and commissions?
• Is a fee-for-service option available?

Being proactive about understanding commissions can help you avoid unexpected costs and ensure you’re getting value for money.

The Australian financial sector is moving towards greater transparency and stronger consumer protections. Regulators continue to tighten rules around commissions, and technology is making it easier for consumers to compare fees and services. As a result, Australians have more power than ever to make informed choices.

Whether you’re buying property, seeking financial advice, or arranging insurance, always ask how your adviser, agent, or broker is paid. Don’t hesitate to compare options, negotiate fees, and request full disclosure. In 2026, being informed is the best way to ensure commissions work in your favour.

• Commissions are common in real estate, financial advice, insurance, and lending in Australia.
• Recent reforms have increased transparency and tightened rules around commissions, especially in financial advice and mortgage broking.
• Always ask for clear disclosure of commissions and fees before committing to a service.
• Comparing options and understanding how professionals are paid can help you make better financial decisions.

By staying informed and asking the right questions, you can navigate commissions confidently and protect your financial interests in 2026 and beyond.