Referral fees in Australia: what's normal, and how to earn one

There is no official referral fee in Australia. In practice it's either a flat amount paid once the new customer signs and pays, or a percentage of what they spend, usually on the first invoice or over the first 12 months. If you're making the introduction, get the amount, the trigger and the payment date in writing before you say a word to anyone.

Kymora, an Australian done-for-you company, runs one. It pays up to $5,000, $3,000 or $1,000 per business introduced, depending on the business type, within 7 days of their first paid bill. Full terms below and on kymora.ai/refer.

What is a normal referral fee in Australia?

There isn't a normal one, and anyone quoting you a single standard rate is guessing. We couldn't find an official Australian benchmark. What exists is published examples, and they point in a few directions.

• 10% of the first invoice, or 5% for 12 months. These are the example percentage models in Sprintlaw's guide to referral agreements in Australia (Sprintlaw).
• 5% to 10% of revenue received. Karl Sakas, who advises agencies, says agencies "typically pay referral fees of 5% to 10% of the revenue they receive", with 10% the most common model, and 12-month caps typical (Sakas & Company). That's US-oriented and undated, so treat it as a rule of thumb.
• 20% for 3 years. HubSpot's partner program says partners "earn 20% commission for 3 years for deals they bring to HubSpot" (HubSpot). That's a global software scheme, and the long end of what you'll see.
• A flat fee. Kymora pays a flat amount per introduction, not a percentage: up to $1,000, $3,000 or $5,000 by business type.

The pattern is simple. The fee is a slice of what the new customer is worth. A one-off small job pays a small fee. A customer who stays for years can justify a big one.

Should a referral fee be a flat amount or a percentage?

A flat fee is easier for both sides, and a percentage is fairer when deal sizes vary a lot. Neither is right for every business.

A flat fee is easy to explain and easy to check. Nobody needs to see anyone's invoices, and the referrer knows what the introduction is worth before they make it. It works when customers are worth roughly the same.

A percentage scales with the deal, but it raises the questions that cause fights. How long does it run? Does it include GST? What if the customer upgrades? Sprintlaw notes the fee can be calculated on GST-inclusive or GST-exclusive amounts, so state which. A cap, like the 12 months Sakas describes as typical, stops it running forever.

How should a business owner structure a referral fee?

Pay for a result you can see, an amount you can afford, and write the rules down. Sprintlaw warns that handshake deals get expensive when a referral turns into a large contract and each side remembers the terms differently.

Decide these before you offer anything:

1. The trigger. "They sign" and "they pay their first bill" are different. Paying on the first bill protects you from paying for a customer who never pays.
2. The amount, and what it's based on. A flat figure, or a percentage of what, over how long.
3. The payment date and method. Sprintlaw's example term is payment "within 14 days of receiving an invoice". Pick your own, but pick one.
4. Who counts. A contact you were already talking to shouldn't earn a fee. Say so up front.
5. Disclosure. Sprintlaw warns against anything resembling a secret commission and suggests disclosing where a customer would expect to know a recommendation is incentivised.

What should you confirm before you introduce someone?

Get the amount, the trigger and the payment date confirmed in writing before you make the introduction. After the introduction it's too late to negotiate.

Check these as well:

• Is the amount fixed or "up to"? If it's "up to", who sets the final number, and when do you find out?
• What happens if they already know the business you're introducing?
• Is there a limit on how many introductions you can be paid for?
• Will you tell the person you're introducing that you may be paid? You should. It protects your name.

Only introduce people you'd be comfortable explaining the payment to.

Is referral income taxable in Australia?

Generally yes. The ATO lists "tips, gratuities and other payments for your services" among the examples of assessable income individuals must declare (ATO). For businesses, it lists "commission income, including sales commissions and for promotional work" and says to include these amounts "even if they are received in the form of goods, services, assets or other benefits rather than cash" (ATO).

Whether you need an ABN, a tax invoice or GST registration depends on your structure. Keep a record of every payment and ask your accountant. This is general information, not tax advice.

Which industries restrict referral payments?

Financial advice, credit and healthcare all do, and the penalties are real. This is general information, not legal advice.

• Financial advice. ASIC defines conflicted remuneration as a benefit that could reasonably be expected to influence the choice of financial product or the advice given. In November 2025 the Federal Court ordered $575,000 and $350,000 in penalties against a licensee and its authorised representative over a case that included $135,863.65 in referral fees from a real estate agent (ASIC).
• Credit. ASIC describes the referral exemption from credit licensing as "a narrow exemption". You can rely on it if you only tell the consumer a licensee can provide particular credit activities, how to contact them, and disclose any benefit or commission (ASIC).
• Health practitioners. The Medical Board's code says doctors should not ask for or accept inducements of more than trivial value from companies that sell or market drugs, devices or services that may affect how they refer patients, and should not offer inducements (Medical Board of Australia, sections 10.12.6 and 10.12.8). MDA National says offering or accepting a benefit for referring a patient is unprofessional conduct under the National Law (MDA National). Ahpra's interim guidance on financial conflicts says a benefit "does not have to be money" (The Medical Republic).

If you hold a licence or registration in any of these areas, check with your regulator or a lawyer before you accept or offer a referral payment.

What does Kymora pay for an introduction?

Kymora pays up to $5,000, $3,000 or $1,000 for each business you introduce, depending on the type of business, once the business signs up and pays its first bill. The amount is confirmed with you before anything else happens. Introductions go through kymora.ai/refer.

Up to $5,000: traffic control companies, labour hire, large contracting companies.

Up to $3,000: dentists and multi-site clinic groups.

Up to $1,000: skin and cosmetic clinics, physio, chiro and podiatry, premium hair salons, vets, mechanics and premium car detailing, personal trainers, gyms and studios, optometrists, laser and hair removal, premium massage and day spas.

How it works:

• It costs you nothing. You never pay Kymora. You give a name and Kymora does the rest.
• You're paid when they pay. The trigger is the introduced business signing up and paying its first bill. Payment is by bank transfer or PayID within 7 days. No invoice, no chasing.
• There's no limit. You're paid for every introduced business that signs up.
• If they say no, nothing happens. Nobody owes anyone anything.
• If they're not a fit, Kymora checks and tells you the next day. If Kymora already knows the business, it can't pay for that one, and tells you the next day.

Who doesn't qualify: businesses with under 300 customers, swim, dance, music and martial arts, solo tradies and small trade crews, real estate agents, restaurants and cafes, photographers and wedding people, online shops, and lawyers and accountants.

What you'd be introducing them to: for appointment-based businesses, Kymora finds every customer they've lost and contacts each one personally, in the business's own voice. The customers book straight back in, the team never touches it, and it's money-back guaranteed. For contracting companies, Kymora runs the daily coordination crews depend on: every worker confirms before the day starts, a no-show's role is automatically reassigned to whoever's available, and every worker is told what they're doing and where to be. More in the crew no-shows guide.

This is an introduction between business owners, not a patient referral. If you're a registered health practitioner or hold a financial services or credit licence, check your own obligations first.