Tax for Mortgage Brokers Australia
This page is for mortgage brokers who want a clearer picture of how trail commissions are taxed and what deductions are available for car travel, phone and internet, CPD, professional indemnity insurance, and why client entertainment is treated differently.
Quick answer: mortgage brokers must declare all commission income — including upfront and trail commissions — in the year received. Common deductions include car travel to client meetings, phone and internet, CPD courses, and professional indemnity insurance. A key trap is client entertainment: meals, drinks, and event tickets with clients are specifically non-deductible under the entertainment provisions, regardless of the business purpose.
Common mortgage broker deductions
Often deductible
- Car travel to client meetings, property inspections, and lender appointments
- Phone and internet costs apportioned to work use
- CPD courses and industry training to maintain your credit licence obligations
- Professional indemnity insurance premiums
- Industry memberships (e.g. MFAA, FBAA)
- CRM software, loan comparison tools, and other work-related subscriptions
- Home office expenses if you regularly work from home
Often non-deductible
- Client entertainment — meals, drinks, gifts of food or drink, and event tickets (specifically excluded)
- Normal home-to-office commuting costs
- Fines or penalties for regulatory breaches
- General clothing that is not a compulsory uniform
- Private portion of phone, internet, or car expenses
Trail commission, travel, and entertainment checkpoints
- Trail commission: trail income is assessable when received, not when the loan was written. You must declare it even if you have left the industry or changed aggregators.
- Car travel: travel from your office or home office to a client meeting is generally deductible. Keep a logbook or use the cents-per-kilometre method with records.
- Entertainment: the entertainment provisions specifically deny deductions for meals with clients, gifts of food or drink, and event tickets — even if there is a clear business purpose.
- Reimbursements: if your aggregator or employer reimburses CPD, insurance, or travel, you cannot also claim the deduction.
Records mortgage brokers should keep
- Commission statements showing upfront and trail income received
- Car logbook or records supporting the cents-per-kilometre claim
- Phone and internet bills with a reasonable basis for the work-use percentage
- Receipts for CPD courses, memberships, and software subscriptions
- Professional indemnity insurance policy and premium records
- Evidence of any aggregator or employer reimbursement to avoid double-claiming
Start with these calculators
Mortgage broker tax FAQs
How is trail commission taxed for mortgage brokers?
Trail commissions are assessable income in the year they are received. You must declare them even if the loan was written years ago or you have since left the industry.
Can mortgage brokers claim car travel to client meetings?
Generally yes. Travel from your office or home office to client meetings, property inspections, and lender appointments is typically deductible. Keep a logbook or records for the cents-per-kilometre method.
Can mortgage brokers claim client entertainment expenses?
No. Meals with clients, gifts of food or drink, and event tickets are specifically non-deductible under the entertainment provisions, regardless of the business purpose.
Tax Accuracy & Sources
This guide summarises common mortgage broker deduction patterns only. Always check whether the expense was reimbursed, whether any private element needs apportionment, and whether the entertainment provisions apply.
Uses 2025-26 ATO rates.