Commission Payments - Paying into Trust

Under Queensland law, if you are a licensed real estate agent operating as an individual and want your commissions paid into a family trust, the trust itself does not need a corporate real estate licence.

The key is that the commission is earned under your individual real estate licence, and you are the licensed entity performing the work, not the trust. 

Why a corporate real estate licence is not required:-

• The trust is not the licensee: A family trust is not a legal entity capable of holding a real estate licence under the Property Occupations Act 2014 (Qld). It is a legal arrangement where a trustee holds assets for the benefit of others.

• Licensing applies to the agent: It is the individual trustee or a company acting as the trustee that applies for and holds a licence, not the trust itself. In this case, you hold the individual real estate licence and are the licensed professional.

• Advertising does not trigger a licence requirement: The fact that you are not advertising the trust is irrelevant to the licensing requirements. A corporate real estate licence is needed when a company is acting as the agent, but that is not the case here. 

Correct process for commission payments

The commissions you earn are legally yours under your individual real estate licence. You can then direct for those funds to be paid to your family trust as part of your tax and financial planning arrangements. 

The process would generally follow these steps:

1. You earn the commission: As the licensed individual agent, you perform the work and earn the commission on behalf of the agency you work for.

2. The agency pays you: The agency for which you work pays the commission to you.

3. You direct the payment: You can have the agency pay your commission directly to the family trust's bank account, provided you have a formal agreement in place to do so. This is standard practice for many contractors and professionals. 

DISCLAIMER: This is general information and does not constitute legal or financial advice. You should always consult with an accountant or legal professional to ensure your specific financial and legal structure complies with all relevant regulations.