1. What is Sales Commission?

Sales commission is a payment made to employees based on the value of sales they achieve. In Australia, commission structures vary by industry but typically range from 5% to 30% of the sale value.

2. How Commission Calculation Works

The basic commission formula is:

Where:

• Sales Amount — Total value of the sale in Australian Dollars (AUD)
• Commission Rate — Percentage rate agreed between employer and employee

Example: For a $10,000 sale at 10% commission, the calculation would be ($10,000 × 10) / 100 = $1,000 commission.

3. Australian Commission Standards

Details: In Australia, commission payments must comply with the Fair Work Act 2009. Common commission structures include:

• Flat rate: Fixed percentage on all sales
• Tiered: Percentage increases after reaching certain targets
• Residual: Ongoing payments for repeat business

4. Using the Calculator

Tips: Enter the sales amount in AUD and the commission rate as a percentage (e.g., enter 10 for 10%). The calculator will compute the commission amount in Australian dollars.

5. Frequently Asked Questions (FAQ)

Q1: Are commissions taxable in Australia?
A: Yes, commission income is taxable and must be declared in your tax return.

Q2: What's a typical commission rate in Australia?
A: Rates vary by industry - real estate often 1-3%, retail sales 5-15%, financial services 20-40%.

Q3: Can commission be my only form of payment?
A: Under Australian law, most employees must receive at least the minimum wage, regardless of commissions.

Q4: How often are commissions paid?
A: Typically monthly, but this depends on the employer's payment schedule.

Q5: What if my commission structure is more complex?
A: This calculator handles basic flat-rate commissions. For tiered or performance-based structures, consult your HR department.