1. What is Sales Commission?

Sales commission is a payment made to an employee or agent based on the value of sales achieved. It's commonly used in real estate, retail, and other sales-oriented industries as an incentive for performance.

2. How Commission is Calculated?

The calculator uses the standard commission formula:

Where:

• Sale Price — The total value of the sale in local currency (AUD or CAD)
• Commission Rate — The percentage rate agreed for the commission

3. Regional Differences

Queensland, Australia: Standard commission rates typically range from 2.5% to 5% for real estate, with variations by industry.

Canada: Commission structures vary by province, with typical real estate commissions around 5% (split between buying and selling agents).

4. Using the Calculator

Tips: Enter the sale price in local currency, the commission rate as a percentage (without the % sign), and select your region. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Are commissions taxed differently in Australia and Canada?
A: Yes, commission income is treated as ordinary income but may have different tax implications in each country. Consult a local tax professional.

Q2: What's a typical commission rate in Queensland?
A: For real estate, it's typically 2.5%-5% of the sale price, often with a minimum fee.

Q3: Are commission rates negotiable?
A: Yes, commission rates are generally negotiable between the seller and the agent or company.

Q4: Do I need to pay GST on commissions in Australia?
A: Yes, GST of 10% applies to most commission payments in Australia, which may be included in or added to the quoted rate.

Q5: How are commissions paid in Canada?
A: Commissions are typically paid at closing for real estate transactions, or according to the sales agreement in other industries.