MITA REVIEW PROCESS

What is MITA?

The Minimum Income Threshold Amount (MITA) is a provision that exists under the Real Estate Industry Award 2020 (Award) for commission-only salespersons. The MITA sets a minimum income threshold that must be met by the salesperson in order for them to be entitled to receive commissions.

Under the Award, commission-only salespersons are paid solely on commission and do not receive a base salary or wage. This means that their income is dependent on their ability to make sales and earn commissions. The MITA is designed to ensure that salespersons are able to earn a minimum income, regardless of their level of sales success.

As of July 2022, the MITA is $61,158.50 (125% of the rate of a Level 2 position under the Award). REEFWA will advise members of the new MITA rate that will apply from 1 July 2023, upon the Fair Work Commission delivering its national wage decision.

It is important to note that the MITA operates as a safety net for commission-only salespersons and does not affect the calculation of commissions. Salespersons are still entitled to receive commissions based on the terms of their employment agreement, even if they earn less than the MITA in a particular week.

MITA Annual Review

Under the Award, there are annual review requirements for commission-only salespersons. These requirements are designed to ensure that the terms of employment for commission-only salespersons are reviewed regularly and are consistent with the minimum standards set out in the Award.

The annual review requirements for commission-only salespersons include:

  • Performance Review: Employers should conduct a performance review of their commission-only salespersons at least once per year. The review should assess the salesperson’s performance against the agreed-upon targets and goals, and provide feedback and coaching as needed to support the salesperson’s ongoing development.
  • Remuneration Review: Employers must conduct a remuneration review of their commission-only salespersons at least once per year. The review should assess the salesperson’s total income, including commissions earned, and compare it to the MITA to ensure that the salesperson is earning at least the minimum amount required.
  • Employment Agreement Review: Employers should review and update their commission-only salespersons’ employment agreements at least once per year to ensure that they comply with the latest legal and regulatory requirements, as well as any changes to the Award or other relevant industry standards.
  • Training and Development Review: Employers should conduct a training and development review of their commission-only salespersons at least once per year. The review should assess the salesperson’s training and development needs and identify opportunities for further training or development.

In summary, these reviews are designed to ensure that the terms of employment for commission-only salespersons are reviewed regularly and are consistent with the minimum standards set out in the Award.

Please contact REEFWA on (08) 9365 7510 or ReefWA@cciwa.com if you require assistance in managing any of the MITA arrangements in your workplace.

Written By Justin Lilleyman – Principal Consultant Workplace Relations

CCIWA, Business Law WA and REEFWA has taken all reasonable care in preparing this document. The contents of this document do not constitute legal advice and should not be relied upon as such. Specific advice for your situation should be sought from CCIWA, Business Law WA or a professional adviser before any action is taken. Neither REEFWA, CCIWA nor Business Law WA accept responsibility for any claim that arises from any person acting or refraining from acting on the information contained in this document.

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