The Australian Fair Pay Commission (Commission) has determined a new piece rate Australian Pay and Classification Scale (Pay Scale) for the real estate sector.
The following example shows how sufficient income calculations under the Real Estate Agents’ (Commission Only) Australian Pay and Classification Scale, can be made:
Zac has been working as a licensed real estate salesperson since 2003. He has recently taken up a position with XYZ Real Estate Pty Ltd where he and his new employer are seeking to establish commission-only pay arrangements.
On 5 December 2007, Zac and his new employer signed an agreement stating that Zac agrees to be paid on a commission-only basis and to be classified as a ‘commission-only real estate salesperson undertaking sales transactions involving an agency relationship’.
Before 5 December 2007, Zac was covered by the Pay Scale derived from the Real Estate Industry (State) Award 2003 [NSW]. His guaranteed rate of pay under that Pay Scale was $14.65 per hour. This rate was increased from $14.38 per hour on 1 October 2007.[5]
To determine whether Zac satisfies the necessary income requirements, Zac and his employer need to examine Zac’s previous working and sales records in order to calculate:
- the amount of pay Zac would have earned under the Pay Scale derived from the Real Estate Industry (State) Award 2003 [NSW] in the 12 month period immediately prior to 5 December 2007; and
- the amount of pay Zac would have earned in a chosen 12 month period in the past five years had the commission-only arrangements set out in the Real Estate Agents’ (Commission Only) Australian Pay and Classification Scale applied.
Zac and his employer made the following calculations:
- (43 weeks x 38 hours per week x $14.38 per hour) + (9 weeks x 38 hours per week x $14.65 per hour) = $28,507.22 for the 12 month period immediately prior to 5 December 2007.
Because Zac was responsible for selling 14 properties in the 12 month period from February 2004 to February 2005 and the average employer’s net commission that resulted from those sales was $7,100;
- 14 completed sales transactions x $7,100 employer’s net commission x 35% commission rate = $34,790.00 for the 12 month period from February 2004 to February 2005.
Because the amount that results from calculation 2 is higher than the amount that results from calculation 1, Zac satisfies the necessary income requirements to be classified as a ‘commission-only real estate salesperson undertaking sales transactions involving an agency relationship’.
Therefore, Zac is covered by the Real Estate Agents’ (Commission Only) Australian Pay and Classification Scale from 5 December 2007 and is guaranteed to be paid the commission-only rates of pay that are set out in that Pay Scale.
Part 1 - Who does the new Pay Scale apply to?
Part 2 - How are rates of pay calculated under the new Pay Scale?
[5] If you require information regarding past and current rates of pay for employees engaged as real estate agents in order to satisfy the necessary income requirements mentioned above, contact the Workplace Infoline on 1300 363 264.