It’s Time for the Annual MITA Review

By Justin Lillyman

The Real Estate Industry Award 2020 requires employers to conduct a mandatory annual review to determine if their commission-only agents can continue to be paid on a commission-only basis.

This annual MITA review ensures commission-only agents meet the Minimum Income Threshold Amount.

Who is eligible to be employed on a commission-only basis?

To be engaged on a commission-only basis, an employee must satisfy all of the following criteria. They must:

  • Be engaged in either property sales or commercial, industrial or retail leasing at the Real Estate Employee Level 2 (Representative Level) or higher. They cannot be engaged at the Real Estate Employer Level 1 (Associate Level), as a casual or junior, on a part-time arrangement or as a trainee
    AND
  • Agree in writing to be remunerated on a commission-only basis and have a written agreement that sets out the basis upon which the commission is to be calculated
    AND
  • Have been issued with either a Real Estate Licence or be registered or permitted to perform the duties of a real estate salesperson under real estate law
    AND
  • Have been employed in property sales or commercial industrial or retail leasing for a consecutive period of at least 12 months in the three years prior to entering into the commission-only agreement
    AND
  • Be at least 21 years of age
    AND
  • Establish they have achieved the MITA.

How much is the MITA?

On 1 April 2022, the MITA for a Real Estate Employee Level 2 (Representative Level) is $58,467.50.

An agent can only continue to be employed on a commission-only basis if they meet the MITA.

What does an employee need to show to satisfy the MITA?

The employer may rely on any one of the following documents as proof that the MITA has been satisfied:

  • The agent’s Individual Payment Summary (formerly known as the Group Certificate)
  • The agent’s pay slips
  • The agent’s commission statement records or other sales records.

The employer can also request that an agent provide a statutory declaration stating the veracity of any documentation relied upon for the purposes of satisfying the MITA.

When must the annual MITA Review occur?

Agents engaged prior to 2 April 2018 –

Where a commission-only agent was engaged by the Agency on or before 2 April 2018, their first annual MITA review had to occur by 1 April 2019. Subsequent reviews will be on 1 April each year thereafter. The next review, therefore, must take place by 1 April 2022.

Agents engaged after 2 April 2018 –

Where a commission-only agent was engaged by the Agency after 2 April 2018, their annual MITA review must take place 12 months after their date of employment as a commission-only agent.

What happens if the Agent fails the MITA Review?

Agents engaged prior to 2 April 2018 –

If at the annual MITA review, the agent’s commission-only gross income is less than the required MITA, they cannot continue to be employed on a commission-only basis.

The employer has two options to deal with the employee in these circumstances:

  1. Immediately move the agent onto a salaried arrangement (i.e. engaged on a retainer basis); or
  1. Look towards terminating the employee.  Termination can only occur after a formal performance management process has occurred.

Further Information

Do not hesitate to contact REEFWA on (08) 9365 7510 for any further information or assistance.

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