1. What is Commission Calculation Including GST?

The commission calculator determines the total amount payable including GST (Goods and Services Tax) in Australia. It calculates the base commission plus the GST component that needs to be remitted to the Australian Taxation Office.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Sale Price} \) — The total sale amount in AUD
• \( \text{Commission Rate} \) — The agreed commission percentage (typically 2-2.5% for real estate)
• \( \text{GST Rate} \) — The current GST rate in Australia (10%)

Explanation: The formula first calculates the base commission, then adds the GST component to determine the total payable amount.

3. Importance of GST in Commission

Details: In Australia, most commission payments are subject to GST if the provider is GST-registered. The GST component must be clearly identified and remitted to the ATO.

4. Using the Calculator

Tips: Enter the sale price in AUD, commission rate as a percentage (e.g., 2.5), and the GST rate (default is 10%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard commission rate in Australia?
A: For real estate, commission rates typically range from 1.6% to 4% of the sale price, with 2-2.5% being most common.

Q2: Who pays the GST on commission?
A: The client pays the total commission including GST, and the service provider remits the GST portion to the ATO.

Q3: Are all commissions subject to GST?
A: Most are, but exceptions exist for GST-free or input-taxed supplies. Consult a tax professional for specific cases.

Q4: How often is GST on commission paid to the ATO?
A: GST-registered businesses typically report and pay GST quarterly through their Business Activity Statement (BAS).

Q5: Can I claim GST credits on commission paid?
A: If you're GST-registered and the commission relates to your taxable supplies, you may be able to claim GST credits.