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The real estate industry is facing a watershed moment in payroll compliance. As of January 2025, employers who intentionally underpay their staff could face up to 10 years in prison or fines of up to $7.825 million. After two decades of working with real estate agencies, I’ve seen firsthand how even well-intentioned employers can stumble into compliance pitfalls, writes Real Estate Employers’ Federation CEO Bryan Wilcox.
Let’s be frank: payroll in real estate isn’t just about paying salaries. Our industry’s unique commission structures and mixed-role employees create complexities that many agencies struggle to navigate. Consider a common scenario I encounter: a receptionist who assists in property management. Which award applies? Get this wrong, and you’re potentially looking at serious underpayment claims.
The landscape is becoming increasingly treacherous. With superannuation rates set to increase to 12 per cent from July 2025, agencies need to be particularly vigilant about their commission agreements. Many don’t realise that without the right contractual provisions, they can’t adjust commission calculations to accommodate these changes.
Throughout my years in the industry, I continue to see agencies facing the same preventable challenges. They misclassify employees as contractors, overlook award requirements, or miscalculate superannuation on commissions. These aren’t just administrative oversights – they’re potential legal time bombs.
But here is what’s really concerning: many agency owners believe they’re compliant because they’re paying above award rates. However, compliance goes far beyond base pay. It encompasses everything, from maintaining seven years of records to ensuring your commission-only salespeople meet the minimum income threshold.
My advice? In today’s regulatory environment, treating payroll as anything less than a critical business function is a dangerous game. The days of managing payroll with basic spreadsheets and a “she’ll be right” attitude are over. The stakes are simply too high.
For agency owners reading this, I urge you to seek professional guidance. The cost of getting expert help is minimal compared to the potential penalties – both financial and criminal – for getting it wrong. In real estate, we’re experts at managing other people’s assets. It’s time we applied the same diligence to managing our payroll obligations.
The future of our industry depends on maintaining high standards of employment practices. Those who adapt will thrive; those who don’t may find themselves facing consequences that no successful property sale can compensate for.
Bryan Wilcox is the CEO of the Real Estate Employers’ Federation.
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