Your hourly rate needs to cover far more than the time you spend on the tools — it has to pay for your unbillable hours, your overheads, your super, your tax, and a real profit on top. Most tradies who struggle financially aren’t charging too little for the work; they’re charging a rate that only accounts for the hours they’re physically on a job.
Why “the going rate” is a trap
Charging what the bloke down the road charges assumes his numbers work — and you have no idea if they do. Plenty of busy tradies charging “the going rate” are quietly going backwards. Your rate has to be built from your costs and your goals, not copied from a competitor who might be underpricing himself into the ground.
What your rate actually has to cover
A sustainable hourly rate accounts for the hours you can’t bill (quoting, invoicing, travel, paperwork), your overheads (vehicle, tools, insurance, phone, software), your superannuation, the tax you’ll owe, and a genuine profit margin. When you work backwards from all of that, the rate that keeps you viable is usually higher than tradies expect.
The unbillable hours problem
Here’s the number that surprises people: a huge chunk of your working week isn’t billable. Every hour spent quoting, chasing invoices, doing paperwork, or driving between jobs is an hour you’re not charging for. If your rate doesn’t account for that, you’re effectively working those hours for free — and that’s before overheads.
Which is why cutting unbillable admin time is one of the fastest ways to improve your actual earnings.
The lever most tradies miss
You can raise your rate, or you can claw back the unbillable hours eating your week — ideally both. Every hour you take back from paperwork is an hour you can bill or an hour you get back to your life. TradieO exists to kill that unbillable admin — the quoting, the invoicing, the chasing, the certificates — so more of your week is actually earning.
Frequently asked questions
Is there a standard tradie hourly rate in Australia?
Rates vary widely by trade, location, and specialisation. Don’t anchor to a “standard” — build your rate from your own costs and targets.
Should I charge a call-out fee?
Many tradies do, to cover the cost of turning up and the travel time. It’s a legitimate way to account for unbillable time.
How do I know if my rate is high enough?
Work out your total annual costs plus the income you want, divide by the hours you can realistically bill (not total hours worked), and you’ll have a floor. Read our guide to working out your rate.