GST on Property Sales and Commissions

GST applies to your services (commission), not necessarily the property sale price itself. This distinction is crucial.

Residential Commission

Even if you are selling a "GST-Free" existing family home, your Commission is a taxable service. You must charge 10% GST on your agency fees and advertising to the vendor.

Vendor Paid Advertising (VPA)

Handling VPA correctly in Xero is tricky.
When you collect VPA upfront from a vendor, it is a Liability (money held for the vendor), not Income.
It only becomes Income (or an expense reimbursement) when you spend it on realestate.com.au or Domain.
If you record VPA as income immediately, you will pay tax on money that isn't yours yet.