# How do I price a job as a tradie in Australia?

> A simple formula for working out your hourly rate, pricing materials and putting a whole job quote together, with a worked example including GST.

Source: https://www.invogo.com.au/resources/how-to-price-a-job-tradies
Category: Quoting | Published: 2026-11-06 | Author: Invogo Team

## Key takeaways

- Your hourly rate is (the income you want + yearly business costs) divided by the hours you can realistically bill.
- Most sole traders can bill only 25 to 30 hours a week, because driving, quoting and admin are unpaid.
- Price materials as cost plus a markup, shown as its own line, to cover sourcing, handling and carrying costs.
- Add GST last, and only if you are registered; the ATO threshold is $75,000 projected GST turnover.

Work out your hourly rate by adding your yearly income target to your yearly business costs, then dividing by the hours you can realistically bill. For a one-person tradie that is often 25 to 30 billable hours a week, not 38. Price each job as labour hours at that rate, plus materials with a markup, plus GST if you are registered.

## How do I work out my hourly rate?

Your hourly rate is (income target + business costs) ÷ billable hours. Do the sum once a year, and again when your costs jump.

Here is a worked example. The numbers are made up, so swap in your own:

| Item | Amount |
|---|---|
| Income you want before tax | $90,000 |
| Vehicle, fuel, insurance, phone, tools, software | $15,000 |
| **Total to cover** | **$105,000** |
| Billable hours (30 a week x 46 weeks) | 1,380 |
| **Hourly rate, excluding GST** | **$76** |

$105,000 ÷ 1,380 is about $76 an hour. If you are registered for GST, you charge $83.60 an hour including GST (the $76 plus $7.60). See [how to calculate GST](/resources/how-to-calculate-gst-australia) if you want to check the maths.

## Why can't I charge for all 38 hours in a week?

Because only some of your week is paid work. Driving between jobs, picking up materials, quoting, answering calls and doing invoices all take time that nobody pays you for.

Most sole traders bill well under a full week. A rate built on 38 billable hours will leave you short every time. Track your real billable hours for a month and use that number. Also take out weeks for holidays, sick days and wet weather. The example above uses 46 working weeks.

## What costs should I include?

Include every cost of running the business that is not a one-off material for a single job. Missing these is the most common reason a rate is too low.

- Vehicle: fuel, registration, servicing, insurance, tolls
- Insurance: public liability, tools, and any trade-specific cover
- Tools and equipment, including replacements and repairs
- Phone, internet, software and accounting fees
- Licences, training and association fees
- Super for yourself, if you plan to pay it
- Money set aside for tax and BAS

Your accountant can tell you how much to set aside for tax. See also [PAYG instalments for tradies](/resources/payg-instalments-for-tradies) so the tax bill doesn't surprise you.

## How do I price materials?

Charge what the materials cost you plus a markup, and show it as a separate line. The markup pays for the time you spend sourcing, collecting, storing and warranting them, and for the cost of carrying them before the client pays.

A common approach is a flat percentage on top of your cost price. For example, $500 of materials with a 20% markup is $600. Pick a percentage that covers your real handling costs. Whether you itemise materials or roll them into one price is up to you. Itemising is clearer if prices might change before the job finishes.

## How do I put a whole job price together?

Add up labour hours at your rate, add materials with markup, add a buffer for the unknowns, then add GST last. Here is an example job:

| Line | Amount |
|---|---|
| Labour: 8 hours at $76 | $608.00 |
| Materials: $500 cost plus 20% | $600.00 |
| **Subtotal excluding GST** | **$1,208.00** |
| GST (10%) | $120.80 |
| **Total including GST** | **$1,328.80** |

Add a contingency of 5% to 15% when you can't see what is behind a wall, under a floor or in a roof. Be upfront with the client about what the quote does and doesn't cover. If you aren't sure whether to give a fixed price or a range, read [quote vs estimate](/resources/quote-vs-estimate-for-tradies).

## Should I charge by the hour or a fixed price?

Charge a fixed price when the scope is clear and you know how long it takes. Charge by the hour (or time and materials) when the scope is unknown, like fault finding or repairs.

Fixed prices reward you for being fast, but you wear the risk if it runs over. Hourly pricing protects you from surprises, but some clients dislike an open-ended bill. Many tradies use a callout fee plus an hourly rate for small jobs and fixed quotes for bigger ones. For larger jobs, ask for a deposit and use progress payments. See [deposits and progress payments for tradies](/resources/deposits-and-progress-payments-tradies).

## Do I add GST to my price?

Add 10% GST only if you are registered. The ATO says you must register once your projected GST turnover (the current month plus the next 11) is $75,000 or more, and you can register earlier if you want to. If you are close, read [when to register for GST](/resources/when-to-register-for-gst). Whatever you decide, say clearly on the quote whether prices include GST.

## How do I stop underpricing?

Check your rate against your last few jobs and ask whether you actually made your target. Raise your rate at least once a year, and when fuel, insurance or material costs jump. Don't compete on being cheapest: the work that suits a one-person business is usually reliable, well-communicated and tidy.

Put the price in writing every time. Invogo lets you save your hourly rate and common materials as line items, then adds GST and your ABN to the quote automatically. The free plan covers 5 invoices or quotes a month with no card needed. You can [try it free](/signup), or see how [Invogo works for tradies](/for-tradies).

*General information, not advice. Check with your accountant or the ATO for your situation.*

## Frequently asked questions

### What is a good hourly rate for a tradie?

It depends on your trade, location and costs. Work it out from your own income target and business costs rather than copying a competitor, who may have different overheads.

### How much markup should I put on materials?

There is no set figure. Choose a percentage that covers your time sourcing and collecting materials and the cost of carrying them. Some tradies use around 20%, as in the example above.

### Should my quote include a contingency?

If the job has unknowns, yes. Many tradies add 5% to 15% or list clearly what is excluded, so extra work can be agreed as a variation.

### How often should I raise my prices?

Review them at least once a year and whenever your costs rise sharply. Small regular increases are easier for clients to accept than a big jump.

## Sources

- [Registering for GST (ATO)](https://www.ato.gov.au/businesses-and-organisations/GST-excise-and-indirect-taxes/GST/registering-for-GST)
- [Goods and services tax (GST) (business.gov.au)](https://www.business.gov.au/new-to-business-essentials/goods-and-services-tax-gst)