Referral Fee Agreement Template Australia: A Comprehensive Guide

Referral fees are an essential aspect of business relationships, particularly in the Australian market. Referral agreements are legal contracts used to define the terms of referral relationships and outline the obligations of all parties involved.

A referral agreement serves to establish a legal framework for referral relationships, which helps to ensure that all parties involved are aware of their responsibilities and obligations.

What is a Referral Fee Agreement?

A referral fee agreement is a document that outlines the terms and conditions of an agreement between two parties. Typically, these parties are a business or an individual who is providing referrals and a business or individual who is receiving those referrals.

The agreement specifies the terms of the referral partnership, including the conditions of payment for each referral, the length of the agreement, and any confidentiality clauses. This agreement is binding and legally enforceable.

Why is a Referral Fee Agreement Necessary?

A referral fee agreement is essential for several reasons:

1. Payment Terms: A referral agreement outlines the payment terms that both parties must abide by. It ensures that the party making the referrals is paid the agreed-upon amount for each successful referral.

2. Legal Protections: A referral agreement provides legal protection for both parties involved in the referral partnership. The agreement sets out the rights and obligations of each party, which helps to prevent any misunderstandings or disputes.

3. Clarity: A referral agreement provides both parties with clarity on the terms of the agreement. It prevents any misunderstandings or miscommunications, which can be detrimental to a referral relationship.

How to Draft a Referral Fee Agreement?

When drafting a referral fee agreement, you must ensure that all essential details are included. Here are some of the most critical elements to include in a referral agreement:

1. Parties Involved: Clearly identify the parties involved in the referral partnership.

2. Referral Fees: Clearly state the referral fee amount and the conditions of payment.

3. Confidentiality: Establish confidentiality clauses to protect sensitive information shared during the referral process.

4. Term of Agreement: Define the length of the agreement, including start and end dates.

5. Termination: Establish the conditions for the termination of the agreement.

6. Governing Law: Define which laws will govern the agreement, including the jurisdiction in case of disputes.

7. Signatures: Ensure that both parties sign the agreement to make it legally enforceable.


A referral fee agreement is a vital aspect of any business relationship that involves referrals. It outlines the terms of the agreement, payment terms, and confidentiality clauses, among other crucial details. It is essential to draft a referral agreement that is clear, concise, and legally enforceable. By doing so, you can ensure that your referral partnership is successful and beneficial to all parties involved.