If you’re a tradie running your own show and you’ve never sat down to properly calculate your charge-out rate — there’s a fair chance you’re leaving money on the table. Or worse, you’re actually paying to go to work.
By Jared Woodbine, Managing Director — Alltech Coatings | Updated March 2026
We see it all the time. Blokes who are absolute weapons at their trade, pulling 50-hour weeks, smashing out quality work — and then at the end of the financial year they’re scratching their heads wondering where all the money went. I’ve been there myself — early on in Alltech, I was charging rates that felt competitive but left nothing in the bank after insurance, super, and vehicle costs were paid.
The problem isn’t the work. The problem is the maths.
Most tradies set their rate by looking at what the bloke down the road charges, adding or subtracting ten bucks, and calling it a day. But your rate needs to cover a hell of a lot more than just your hourly labour. It needs to cover super, insurance, your ute, your tools, your leave — plus actually put food on the table and pay the mortgage.
In this guide, we’re going to walk you through exactly how to figure out what you should actually be charging. No fluff. Real numbers. Real data from over 50 trade categories across every state and territory in Australia.
1. What Are Other Tradies Actually Charging?
Before we get into the formula, let’s look at the lay of the land. We’ve pulled together charge-out rate data (ex-GST, contractor rates) across the most common trades in Australia.
These aren’t made-up numbers. They’re based on real market data that feeds our Subby to Salary Calculator at bosstradie.com.au.
National contractor charge-out rates ($ per hour, ex-GST):
| Trade | 25th %ile | Median | 75th %ile | Top 5% |
|---|---|---|---|---|
| Electrician | $82 | $97 | $118 | $150 |
| Plumber | $88 | $105 | $132 | $168 |
| Carpenter | $65 | $82 | $102 | $132 |
| Bricklayer | $70 | $88 | $112 | $145 |
| Concreter | $68 | $85 | $108 | $140 |
| Painter | $62 | $78 | $98 | $128 |
| Tiler | $68 | $88 | $112 | $148 |
| Roofer | $68 | $88 | $112 | $148 |
| HVAC / Refrigeration | $92 | $115 | $142 | $180 |
| Welder | $75 | $95 | $122 | $155 |
A few things jump out straight away:
Sparkies and plumbers at the median are charging $97–$105/hr. If you’re a licensed sparky charging $70/hr, you’re likely sitting well below the 25th percentile — meaning three-quarters of your competitors are charging more than you.
Carpenters have one of the widest spreads. The bottom quarter are charging $65/hr while the top 5% are getting $132/hr. That’s literally double. Same trade, same tools, same early mornings — but one bloke’s earning twice as much.
The premium trades (including rope access, which I know well) — lift mechanics, pest controllers, and fire protection plumbers — command $120–$192/hr at the top end. If you’re in one of these niches and undercharging, you’re really missing out.
2. Location Matters More Than You Think
Your charge-out rate isn’t a national flat number. Where you work makes a big difference. Here’s how electrician rates vary across the states:
| State | 25th %ile | Median | 75th %ile |
|---|---|---|---|
| NSW | $86 | $102 | $124 |
| VIC | $85 | $101 | $123 |
| QLD | $82 | $97 | $118 |
| WA | $93 | $110 | $133 |
| SA | $77 | $91 | $111 |
| TAS | $76 | $90 | $110 |
| NT | $94 | $111 | $135 |
| ACT | $89 | $106 | $129 |
WA and the NT pay the highest rates — a median sparky in Perth is charging $110/hr vs $90 in Hobart. That’s over $400/week difference on a standard 5-day week.
The takeaway? Don’t benchmark yourself against tradies in another state. A rate that’s competitive in Adelaide might be leaving money on the table in Sydney.
3. The Hidden Costs That Eat Your Rate Alive
This is where most tradies get it wrong. They think their charge-out rate is basically their take-home pay, minus a bit for fuel and maybe a tool here and there.
The reality? When you add up all the costs of running your own business, roughly 27.5% of your gross revenue gets swallowed (in our business, between IRATA certifications, specialist insurance for working at height, and equipment replacement, it’s closer to 30-35%) before you see a cent of take-home pay. And that’s before income tax.
Here’s what your rate actually needs to cover:
| Cost Item | % Loading | Typical Annual $ |
|---|---|---|
| Superannuation (employer contribution) | 12% | Calculated on wage |
| Annual leave provision (4 weeks) | ≈7.7% | Built into rate |
| Sick leave provision (10 days) | ≈3.8% | Built into rate |
| Public holidays (≈10 days) | ≈4% | Built into rate |
| Insurance (public liability, income prot.) | — | $3,500 / year |
| Vehicle (repayments, fuel, rego, servicing) | — | $15,000 / year |
| Accounting / bookkeeping | — | $2,500 / year |
| Tools & equipment | — | $3,000 / year |
That $24,000 in fixed annual costs alone works out to about $10.50/hr on top of your rate (assuming roughly 44 billable weeks at 5 days and 8-hour days). And the leave loading of 27.5% means for every dollar you earn, only about 73 cents is actually productive income.
Let that sink in. If you’re charging $80/hr and you thought that was your pay rate — it’s not even close.
4. The Charge-Out Rate Formula
Here’s the simple version. Your charge-out rate needs to cover four things:
- Your target take-home pay — what you actually want in your pocket after tax
- Employment on-costs — super, leave loading, workers comp
- Fixed business overheads — insurance, vehicle, tools, accounting
- Profit margin — because you’re running a business, not a charity
Charge-Out Rate = (Annual Costs + Target Income) ÷ Billable Hours
Worked Example: Sparky in Brisbane
Let’s say you’re an electrician in QLD. You want to take home $100,000 before income tax. Here’s how the numbers stack up:
| Item | Amount |
|---|---|
| Target gross income (before income tax) | $100,000 |
| + Superannuation (12%) | $12,000 |
| + Annual leave loading (7.7%) | $7,700 |
| + Sick leave loading (3.8%) | $3,800 |
| + Public holiday loading (4%) | $4,000 |
| + Insurance | $3,500 |
| + Vehicle costs | $15,000 |
| + Accounting | $2,500 |
| + Tools & equipment | $3,000 |
| TOTAL ANNUAL COST | $151,500 |
Now divide by your billable hours. Assuming 44 billable weeks (52 weeks minus 4 weeks annual leave minus 2 weeks sick/public holidays minus 2 weeks admin/quiet periods) at 8 hours/day, 5 days/week:
44 weeks × 5 days × 8 hours = 1,760 billable hours
$151,500 ÷ 1,760 hours = $86/hr (break-even)
That’s your break-even rate. Charge less than $86/hr and you’re literally going backwards. And this is before you’ve added a single dollar of profit margin.
The QLD median electrician rate from our data is $97/hr. That gives you about a 13% margin above break-even. Comfortable? Barely. That’s a thin margin that evaporates the moment you have one bad week, a tool breakdown, or a job that runs over.
If you want a healthy 20% margin, you’d need to charge around $103/hr. To sit at the 75th percentile ($118/hr), you’re looking at a 37% margin — and that’s where you start actually building wealth rather than just surviving.
5. Why Most Tradies Undercharge (And Why It Hurts Everyone)
We get it. When you’re quoting against three other blokes and you really need the work, the temptation to sharpen your pencil and drop your rate is massive. But undercharging creates a vicious cycle:
You drop your rate to win more work. Then you need more hours to make the same money. Then you’re working 55–60 hour weeks. Then your quality starts to slip because you’re knackered. Then you start resenting the work. Then your body starts breaking down because you haven’t taken a proper holiday in two years.
Sound familiar?
The tradies who are charging at the 75th percentile and above aren’t necessarily more skilled than you. They’ve just done the maths, know what they’re worth, and they’re not afraid to charge for it. They work fewer hours, do better quality work, take real holidays, and their businesses actually grow.
Meanwhile, the bloke charging $65/hr as a carpenter is effectively working for $35–$40/hr after all costs. That’s less than a lot of employees earn — and employees get super paid for them, sick leave, annual leave, and workers comp. They don’t have to chase invoices or do their own BAS either.
6. How to Increase Your Rate Without Losing Clients
You don’t have to jump from $75/hr to $120/hr overnight. Here’s how smart tradies do it:
Know your numbers. Use our free calculators (details below) to figure out your actual break-even rate. You can’t charge the right price if you don’t know your costs.
Increase rates for new clients first. Every new quote goes out at your new rate. Existing clients can be moved up gradually — $5–10/hr every 6–12 months.
Focus on value, not price. Show up on time, communicate clearly, leave the site clean, and follow up. Clients pay more for tradies they can actually rely on.
Specialise. The data shows specialist trades command higher rates. A general sparky charges $97/hr at the median, but an electrical inspector gets $128/hr. Find a niche.
Let go of the bottom-feeders. If a client won’t pay your rate, they’re costing you money. Replace them with clients who value quality. You’ll work less and earn more.
7. Calculate Your Exact Rate in 2 Minutes
We’ve built two free calculators for Australian tradies, because not every situation is the same. Which one you need depends on what you’re actually doing.
Going from Wages to an ABN? Use the Subby to Salary Calculator
If you’re essentially doing the same work you’re doing now but switching from wages to contracting — same boss, same site, just getting paid on an ABN instead of a payslip — this is the one for you. No advertising costs, no quoting time, no chasing multiple clients. You just need to know what hourly rate replaces your current salary once you factor in all the hidden costs (super, leave, insurance, etc.).
The Subby to Salary Calculator will tell you:
- Your break-even hourly rate (the minimum you should charge)
- Where you sit vs other tradies in your trade and state
- What you’d actually take home as an equivalent salary
- A personalised PDF report you can save and reference
➡ Try the Subby to Salary Calculator →
Starting a Real Business? Use the Advanced Tradie Calculator
If you’re going out on your own properly — building a client base, advertising, spending hours each week quoting, following up leads, building a brand — your costs look very different. You’ve got marketing spend, unpaid quoting time, branding costs, maybe a website, maybe a wrapped ute. All of that needs to be baked into your rate or you’ll be underwater within 12 months.
The Advanced Tradie Calculator factors in everything the basic one does, plus:
- Advertising and marketing costs
- Non-billable hours (quoting, admin, travel, follow-ups)
- Branding, signage, and website costs
- A true “business owner” charge-out rate — not just a contractor rate
➡ Try the Advanced Tradie Calculator →
Both calculators are free and take about two minutes. Pick the one that fits your situation — it might be the most profitable two minutes you spend all year.
Stop guessing. Start knowing.
Your rate isn’t just a number — it’s the difference between building a business and running a very expensive hobby.
— The Boss Tradie Team