Does an Executor Get Paid in Australia?

Yes — in Australia an executor can be paid for the work of administering an estate, but it is not automatic. Payment can come from a clause in the will, an agreement with the beneficiaries, or an application to the Supreme Court for what is called executor’s commission. Family executors very commonly serve without payment, but seeking reasonable compensation for genuine work is your right.

This guide explains the three pathways, how much executor commission is typically awarded, when you should and should not take payment, and how it is taxed. Executor commission rules vary by state and case; this is general guidance, not legal advice.

The three ways an executor can be paid

There are three pathways, in order of how often they are used:

1. Payment specified in the will. A will can include a charging clause that sets out what the executor is to be paid — a fixed sum, an hourly rate, or a percentage. If the will provides this, the clause governs and no court application is needed. Always read the will carefully for any such clause before deciding what to charge.
2. Agreement with the beneficiaries. If the will is silent on payment, an executor can ask the adult beneficiaries to agree to a commission. If everyone signs off in writing — and they all have legal capacity — the executor can be paid the agreed amount without a court application. This is faster and cheaper than the court route, and is the most common pathway when family members want to compensate one of their own for the work.
3. Court application for commission. If the will is silent and the beneficiaries do not agree, the executor can apply to the Supreme Court for an order awarding commission. The court considers the work actually done — what the law often calls the “pains and troubles” of administration — and decides what is reasonable.

How much commission is typical?

There is no fixed national rate. Each Supreme Court approaches commission its own way, but a few general guideposts apply across jurisdictions:

• Courts typically award commission as a percentage of the estate, sometimes split between capital (what the executor collected and brought into the estate) and income (what was earned during administration). Capital rates are usually lower than income rates.
• As a working assumption, capital commission falls somewhere between nil and a few per cent; income commission can be higher in percentage terms but applies to a much smaller base. Always check current published rates and case practice in your state before relying on a number.
• The amount awarded scales to actual work done, not estate size alone. A small estate with significant complexity can attract proportionally more commission than a larger but simpler one.
• Courts reduce or refuse commission if the executor has acted improperly, delayed unreasonably, mixed estate and personal funds, or caused loss to the estate.

Professional executors — solicitors, accountants, or trustee companies — charge their own fees on top of, or instead of, commission, on terms set in their engagement.

When you should not take payment

There are situations where taking commission is technically allowed but practically a mistake:

• You are also a major beneficiary. Taking commission on top of an inheritance is legally permitted in most circumstances but often creates friction with other beneficiaries. Some family executors prefer to forgo commission entirely and take only their share.
• The estate is small or modest. Commission paid from a small estate erodes what beneficiaries receive. Many executors of modest estates serve without payment.
• Beneficiaries cannot afford to lose a share. Where dependents rely on the estate, the dignified choice is often to forgo or reduce commission, even if you could justify it.
• There is conflict in the family. Taking commission against the wishes of beneficiaries — especially through a court application — almost always inflames a difficult situation. Consider whether the money is worth the cost to the relationship.

There is no shame in being paid for genuine work; there is also no obligation to take it. Many executors choose to claim reasonable out-of-pocket expenses but waive commission.

Out-of-pocket expenses are different

Reimbursement is not commission. Any executor — paid or unpaid — is entitled to be reimbursed from the estate for reasonable expenses they incur in administering it: the court filing fee, certified copies of the death certificate, travel for estate business, courier fees, search fees, valuation costs. Keep every receipt. Reimbursement does not require beneficiary agreement or a court order; it is part of the cost of administering the estate.

How executor pay is taxed

In general, executor’s commission is treated as assessable income in the recipient’s tax return for the year it is received, and must be declared. Reimbursement of out-of-pocket expenses is not income. There are special considerations where the executor is also a beneficiary, where the estate spans multiple tax years, or where the commission is paid in kind rather than cash. The Australian Taxation Office publishes guidance for executors and beneficiaries of deceased estates. Speak to an accountant before drawing commission, especially if the amount is significant.

How to apply for executor commission

If you are pursuing commission and the beneficiaries do not all agree in writing, the process is broadly:

1. Finalise the administration first. Courts generally consider commission after the executor has substantially completed the work — not in advance. Complete collection, payment of debts and tax, and prepare a final account.
2. Prepare a detailed record of work done. Hours, tasks, complexity, problems resolved. Commission applications turn on evidence of “pains and troubles,” not assertions.
3. Try the agreement route first. Present the beneficiaries with your record and a proposed commission. Written agreement avoids a court application altogether.
4. Apply to the Supreme Court if agreement fails. This is its own court process with its own filing fee, evidentiary requirements, and likely cost in time. For most family executors of modest estates, the cost of applying exceeds what the court is likely to award.

If commission is significant or contested, a solicitor experienced in succession work is usually worth the fee — both to advise on the prospects and to prepare the application properly.

State by state

Executor commission rules and Supreme Court practice vary across the states. The official registries are the right starting point for procedure in your jurisdiction:

• Queensland — Queensland Courts
• New South Wales — NSW Supreme Court Online Registry
• Victoria — Supreme Court of Victoria
• Western Australia — Supreme Court of Western Australia
• South Australia — Courts SA Probate Registry
• Tasmania — Supreme Court of Tasmania
• ACT — ACT Supreme Court
• Northern Territory — Supreme Court of the NT

Frequently asked questions

Is an executor automatically entitled to be paid?

No. Payment requires a clause in the will, agreement from the beneficiaries, or an order from the Supreme Court. An executor is, however, automatically entitled to be reimbursed for reasonable out-of-pocket expenses.

How much can an executor charge?

There is no fixed national rate. Courts award commission based on the work actually done, typically as a percentage of the estate’s capital and income, with rates that vary by state and the complexity of the administration. Significant commission usually justifies professional advice.

Can an executor who is also a beneficiary still claim commission?

Yes, in most circumstances. Being a beneficiary does not by itself disqualify you from commission. However, taking commission on top of an inheritance often causes tension with other beneficiaries, so many family executors choose not to.

Is executor commission taxable?

Generally yes — it is treated as assessable income in the recipient’s tax return for the year it is received. Reimbursement of expenses is not. Speak to an accountant before drawing significant commission.

What if the will does not say anything about payment?

Then payment requires either written agreement from the adult beneficiaries with capacity, or an order from the Supreme Court. The beneficiary-agreement route is faster and cheaper when it is available.

The Executor’s Guide provides plain-English, practical information for executors and administrators in Australia. It is general information, not legal or tax advice, and does not account for your specific circumstances. Commission rules vary by state and case. For advice about your situation, consult a qualified legal practitioner and, for tax questions, a qualified accountant.