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Commission Split Agreement

Commission Split Agreement Template for Australia

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Key Requirements PROMPT example:

Commission Split Agreement

"I need a Commission Split Agreement for a real estate agency partnership where senior agents receive 70% commission and the agency retains 30%, with monthly payment terms and performance targets that must be met by March 2025."

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Document background
The Commission Split Agreement is essential for businesses and individuals operating in commission-based industries within Australia. This document is typically used when two or more parties agree to share commission earnings from business activities, such as sales, referrals, or business development. The agreement needs to comply with Australian federal and state legislation, including the Independent Contractors Act 2006, Fair Work Act 2009, and relevant state-specific regulations. It provides a clear framework for commission calculations, payment terms, dispute resolution, and parties' obligations. The document is particularly important in industries such as real estate, financial services, and insurance, where commission sharing arrangements are common practice. A well-structured Commission Split Agreement helps prevent misunderstandings and disputes while ensuring compliance with Australian tax requirements and industry regulations.
Suggested Sections

1. Parties: Identifies and provides full details of all parties to the agreement

2. Background: Explains the context of the agreement and the intention of the parties to enter into a commission split arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Commission Structure: Details the agreed commission split percentages and calculation method

5. Payment Terms: Specifies timing, method, and conditions for commission payments

6. Parties' Obligations: Outlines the duties and responsibilities of each party

7. Term and Termination: Specifies the duration of the agreement and conditions for termination

8. Confidentiality: Protects confidential information shared during the business relationship

9. Dispute Resolution: Establishes procedures for resolving disagreements

10. Governing Law: Specifies that Australian law governs the agreement and jurisdiction

Optional Sections

1. Non-Compete Clause: Restricts parties from engaging in competing activities - include when protecting business interests is crucial

2. Training and Support: Details any training or support provided - include when one party provides ongoing support to the other

3. Marketing and Branding: Specifies how marketing and branding should be handled - include when brand representation is important

4. Insurance Requirements: Outlines required insurance coverage - include when specific industry regulations require insurance

5. Intellectual Property: Addresses ownership and use of IP - include when IP is involved in the business relationship

6. Performance Metrics: Establishes performance standards - include when commission splits are tied to performance

7. Territory Restrictions: Defines geographical limitations - include when territory exclusivity is part of the arrangement

Suggested Schedules

1. Schedule A - Commission Rates: Detailed breakdown of commission percentages and any sliding scales

2. Schedule B - Commission Calculation Examples: Examples showing how commissions are calculated in various scenarios

3. Schedule C - Payment Procedures: Detailed procedures for invoicing, payment processing, and reconciliation

4. Schedule D - Performance Targets: Specific targets or quotas if commission splits are performance-based

5. Appendix 1 - Reporting Templates: Standard templates for commission reporting and tracking

6. Appendix 2 - Dispute Resolution Procedures: Detailed procedures for handling commission disputes

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




































Clauses



































Relevant Industries

Real Estate

Financial Services

Insurance

Sales and Marketing

Recruitment

Automotive Sales

Business Consulting

Commercial Property

Retail

Direct Sales

Investment Services

Relevant Teams

Sales

Business Development

Legal

Finance

Operations

Human Resources

Compliance

Administration

Account Management

Commission Administration

Relevant Roles

Sales Director

Business Development Manager

Real Estate Agent

Financial Advisor

Insurance Broker

Sales Representative

Commission Agent

Recruitment Consultant

Account Executive

Regional Sales Manager

Business Partner

Independent Contractor

Sales Operations Manager

Commission Administrator

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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