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Glossary

Net trail

Trail commission after the aggregator's share has been deducted: the amount that actually reaches the broker, and the figure buyers multiply when valuing a book.

Lenders quote trail as a gross rate, aggregators take their share, and what remains is net trail. It is the number to use for income reporting, cash-flow planning and valuation, and it is the number most brokers do not know precisely because it is spread across hundreds of lines on a monthly statement.

Net trail is also the figure that reveals run-off. Comparing this month's net trail with last month's, loan by loan, shows which clients left, which paid down sharply and which lenders' rates changed. Annualising it gives the base for a valuation; tracking it over twelve months gives the trend a buyer will ask about.

GST complicates the reading. Statements show inc-GST and ex-GST columns, and the inc-GST commission line is the cash received. Income for the business is the ex-GST amount; the GST is collected on the tax office's behalf.

Worked example

  • Gross trail this month: $6,000 ex GST
  • Aggregator split 85%: net trail $5,100 ex GST, $5,610 inc GST
  • Annualised net trail: $61,200 ex GST
  • Valuation base at 3×: $183,600

Frequently asked questions

Should I value my book on gross or net trail?

Net. A buyer will receive the net amount under their own aggregator agreement, so gross overstates the price. If you quote gross, expect the buyer to adjust.

Why does my net trail fall when no clients have left?

Balances fall as clients repay, lump-sum repayments and offset changes reduce the trail base, and some lenders step trail rates down after a set number of years. Line-by-line comparison shows which.

General information only — not credit advice. Figures are indicative estimates and may not reflect your circumstances. Consider seeking advice from a licensed professional before acting on this information.

Last reviewed 05/09/2026 · Not yet verified against lender material