1. What is Commission-Based Salary?

Commission-based salary is a compensation structure where employees receive a base salary plus additional earnings based on sales performance. In Australia, this is common in retail, real estate, and financial services industries.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Salary — Fixed base amount in AUD
• Sales Amount — Total sales generated in AUD
• Commission Rate — Percentage of sales paid as commission
• Tax Rate — Percentage of total earnings withheld as tax

3. Understanding Australian Commission Structures

Details: In Australia, commission structures vary by industry. Common models include flat-rate commissions, tiered commissions (higher rates for exceeding targets), and residual commissions for ongoing accounts.

4. Using the Calculator

Tips: Enter all amounts in AUD. The commission rate and tax rate should be entered as percentages (e.g., 5 for 5%). The calculator will show breakdown of commission earnings, total earnings, tax amount, and final take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: Are commissions taxed differently in Australia?
A: No, commission income is taxed as ordinary income in Australia, included in your total taxable income.

Q2: What is a typical commission rate in Australia?
A: Rates vary by industry - retail often 2-10%, real estate 1-3% of property value, financial services 20-50% of first year's premium.

Q3: How is PAYG tax calculated on commissions?
A: Your employer will withhold PAYG tax based on your total earnings (salary + commission) using ATO tax tables.

Q4: Are there minimum wage requirements with commission?
A: Yes, your total earnings (including commission) must meet or exceed the national minimum wage for all hours worked.

Q5: Should superannuation be paid on commissions?
A: Yes, employers must pay 11% superannuation (as of 2023) on your ordinary earnings, which includes commission payments.