How it works
Scrap agent commission: set up front, then locked
When you hire an agent on ScrapTrade, you set the agent's commission as a percentage before the hiring agreement is confirmed. ScrapTrade suggests a default of 5%, and you can change it before you confirm. Once the agreement is confirmed, the rate is locked for that agreement and neither side can change it. A different rate means a new agreement, and the original stays on record.
| Seller-hired agent | Buyer-hired agent | |
|---|---|---|
| Who pays the commission | The seller | The buyer |
| Default rate | 5%, editable before confirmation | 5%, editable before confirmation |
| After confirmation | Locked for that agreement | Locked for that agreement |
| How it is paid | Deducted from the seller's proceeds when payment settles | Added on top of the purchase price |
| Effect on the other party | The buyer's price is unchanged | The seller's price is not reduced |
| Who sees the breakdown | Seller and agent | Buyer, seller and agent, each for their own part |
Seller-hired example
When the seller hires the agent
Illustrative: a A$1,000 sale with an agent at 8.5%
| Sale amount | A$1,000.00 |
| Agent commission (8.5%) | A$85.00 |
| Seller proceeds before platform charges | A$915.00 |
Platform charges and applicable taxes are not included and are deducted under the platform's fee structure. Example only, not a price guide.
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Request a scrap agentBuyer-hired example
When the buyer hires the agent
Illustrative: a A$1,000 listing and a buyer's agent at 7.5%
| Product purchase price | A$1,000.00 |
| Buyer agent commission (7.5%) | A$75.00 |
| Total payable by the buyer | A$1,075.00 |
The seller still receives the A$1,000.00 sale value, less platform charges, and the agent receives A$75.00. Other fees and taxes are not included. Example only.
Before you confirm
Five things to check
- The percentageKeep the 5% default or set your own. You cannot change it after confirming.
- What it applies toA listing, a single transaction or a period of work. Make sure the agreement says which.
- What it is calculated onCheck which amount the percentage applies to, and which charges sit outside it.
- What happens if a deal does not completeCheck how cancellations, refunds, returns, disputes and failed payments are treated, and when the commission becomes payable.
- Your breakdownYou should be able to see the calculation, payment status and settlement breakdown for your part of the deal.
Fees and commission may attract tax, so speak to a tax adviser about how they apply to you.
In Australia
Commission, GST and tax invoices
Ask a registered tax agent how GST applies to the commission, whether you can claim anything back and how it is treated in your accounts. The platform's breakdown shows the commission separately from the sale value, which helps with your records.
Frequently asked questions
How do scrap agents get paid?
The hirer sets the commission percentage when hiring, with a default of 5% that they can change before confirming. When the deal settles, the agent receives the agreed commission through the platform.
Who pays the commission if a seller hires an agent?
The seller. The commission is deducted from the seller's proceeds when payment settles, and the buyer's price is unchanged.
Who pays the commission if a buyer hires an agent?
The buyer. It is added on top of the purchase price, and the seller's price is not reduced.
Can the commission change after we agree?
No. Once the hiring agreement is confirmed the rate is locked. A change needs a new agreement, and the original stays on record.
Is the 5% default fixed?
No. It is a default that the hirer can change before confirming the agreement.
Does the commission include platform charges and taxes?
No. Platform charges and applicable taxes are separate and are shown in the payment breakdown.
More about hiring a scrap agent
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Related reading: Scrap agent vs scrap broker · How to choose a scrap agent · Hiring agreement checklist