Can a new real estate agent be paid commission only?

Read the eligibility clause first

Clause 16.7 of the Real Estate Industry Award sets out commission-only rules. For someone entering their first real estate job, the direct answer is usually that they will not yet meet those requirements. A promise of future sales does not replace evidence of eligibility. Real Estate Industry Award, clause 16.7.

This article concerns employees covered by that award. Genuine contractors have different arrangements. A label in an advertisement does not settle which relationship exists; use Fair Work’s contractor guidance if the offer is unclear. Independent contractors.

Check every requirement

The award limits commission-only employment to qualifying property sales or commercial, industrial or retail leasing employees at Level 2 or above. It excludes part-time and casual employees, juniors, Level 1 employees and trainees.

The employee must be at least 21, legally authorised to perform the work, and have a written commission agreement. They also need at least 12 consecutive months of the specified work, or running their own real estate business, within the previous three years.

There is an earnings test too. The Minimum Income Threshold Amount, or MITA, generally requires evidence of remuneration of at least 125% of the annual classification minimum in a qualifying consecutive 12-month period within the previous three years, excluding statutory superannuation. The award contains an exception to that entry earnings test for someone who operated their own real estate business within the last three years, plus provisions for older arrangements.

Eligibility is only the first question

The award also sets a minimum commission-only percentage, rules for sharing transaction components and an annual income review. If the review shows income below the required threshold, the commission-only arrangement must cease. Read the full clause rather than lifting one percentage from an online post.

For a new starter, a lawful wage-based offer can provide room to learn. Choosing that path does not show a lack of confidence. It recognises that understanding clients, systems and local property rules takes practice.

Make the decision with evidence

Ask an employer proposing commission-only pay to identify your classification, the eligibility evidence and the review process in writing. Do not manufacture an earnings record or assume a course makes you eligible.

Your next step

Read What can you earn in your first year in real estate?, then check the live award with Fair Work before signing. If your circumstances fall outside the ordinary new-starter case, get advice on the exact arrangement. A clear, lawful starting point is more useful than an impressive percentage without a workable pay structure.