You must have come across the famous piece by news.com.au focusing on how tradies earn huge incomes. The report insinuated that these tradespeople made thousands of dollars annually, mostly from extorting their customers while getting away with it.
The piece also broadcasted a list confirming that removalists earn more than other tradespeople by pocketing more than $90 hourly. The same list highlighted other people who charge equally high hourly rates for their services.
The list includes;
- Carpenters’
- Handyman,
- Electricians,
- Plumbers.
We collected this data from serviceseeking.com.au after they conducted a survey that analysed over 100,000 jobs that Service Seeking highlighted in 2018 to confirm if what news.com.au wrote was true.
Service Seeking is where customers post task opportunities, and business people come in with their rates. It’s more of a gap between trusted clients and business people. Customers can then select their preferred tradespeople and rates, referred to as trade businesses quoted rates.
However, as a businessman trying to set your independence, you might face challenges as more accurate information often needs to be online. Here are a few insights to save you from misleading.
This article is A good example; previously, we noted that individual tradespeople make between $80-$90 hourly, but it only highlights some conditions for producing that amount.
For example, most articles won’t tell you that you have to be an established business to make that amount or that other firms make that amount all week.
Before you believe anything you read, research to avoid being misled by half-cooked online information.
This information portrays a bad image to the general public that tradespeople overcharge customers and get away with it. Therefore, this piece will show how much tradespeople earn and the costs incurred in running their businesses.
That way, if anyone comes to you with misleading information, you can quickly call them out and justify yourself as a person in business.
Here’s the Deal – Nobody Is Making $95 per Hour.
Those businesses that charge such amounts exist, but it’s always a valid reason.
Whenever you come across a business that charges such amounts for a service, you immediately guess they have equally high expenses to cover those rates.
In addition to their labour rates, here are some other costs they likely cover;
- They pay their employees for sick and holiday days and days when there is extreme weather.
- They may also get paid for days they can’t get can’t. However, this policy applies differently to each enterprise.
- If yours is a long-term project, you can be sure they will spend the majority of their resources and time working on your project.
- They train their employees on ways to maintain safety in addition to the usual skill polishing.
- They probably have 2-5 jobs daily. Therefore, they’ll need to cater for the travelling expenses and maintain the tools they have.
Generally, when you analyse the general costs of the people who charge such amounts, you can tell they work extra hard hence Bill such high amounts.
For those hourly rates, you’ll find they pay extra dollars;
- Administration — this is the soft-spoken person who answers all your questions, updates the invoices and ensures everyone is paid
- Servicing the vehicles— They ensure they are in the best state, fully fueled, and insured.
- They have business licences and insurance to pay for
- Marketing costs — their businesses are well broadcasted such that many people access them whenever they wish.
- They have a business coach who guides them on how to run their business.
- They have phone bills, computers, rent and internet charges.
- They train their staff in ways to operate as they polish their skills — we pay such high costs for a job well done.
If you intend to charge such high costs, you must be convincing or have a salesperson who will tell your clients where their money is going. You must convince them they will get value for their money and promise to surpass their expectations.
That said, if anyone is charging such low amounts, I’d want tI’dnow; how they break even. If setting less is your policy, you should be able to convince your clients that even then, you’ll get your job well done.
However, even so, remember its business, so you need to make a profit and be fully covered for risks that come your way( like when customers don’t pay, don’t You also need to pay your employees well for the jobs they do for you.
Who is a Tradie?
Also known as a tradesperson or a tradesman, these people have special skills, often in manual work. They are often people of high excellence in their trade and craft and can usually apply their practical and theoretical knowledge to their skills.
While most people don’t know this, tradies are among Australia’s most demanded people and the best-paid people regarding salaries and wages. The more skilled you are at your job, the more you earn there.
Being a tradesman is a physically straining task; it’s the opposite of your regular 9-5 job. Tradies often vary in responsibilities, as some deal with bricks, others with chips and others with spark, but they have some features in common.
What Makes Being a Tradie So Popular?
Several reasons make Tradies quite popular in Australia. Here are the most common ones;
1. Job Security
Regarding demand, you can never go without a job as a tradie. The reason is that many people are always looking for tradies to work on various projects at home or in the offices. Here is a good example, Perth, Building Inspection, and Brisbane arborists are the most demanded people in Australia.
The time will never come when people lack house repairs and maintenance. With more people bringing up homes, you can expect that the demands of tradies will automatically go up. In other words, being a tradie means people will need you daily.
If you consider being a tradie, you should take up the challenge. Being a tradesman is currently a great place to be, and from what we can tell, the future is equally bright.
2. No Uni Education is Needed
You must spend about three years in Uni to work in a white-collar or office job. You will also need to further your studies to the master’s, honours or doctorate to compete with billions of people looking for job opportunities relevantly.
We all know how to know how high the costs of these universities are, so you might need to take up a loan to cover the expenses.
A recent study showed that Australian students take about $20,000 in loans to cover their university fees and the sleepless night of studying. To complete a degree means dealing with more stress, low pay, and loan deductions.
On the other hand, tradies will only spend between 6m and two years in school with no need to further their studies. They also learn their skills at the job, meaning they can earn as they work, which keeps them away from large education debts.
These durations depend on how fast the student can learn their skills.
3. Work Flexibility
Once you complete your course as a tradie and polish your skills, you can immediately start your own business and work under your own rules. Studies show that most tradies are self-employed, with complete control to run their businesses and take them to their desired heights.
4. Say No to the Office Cubicle
Being a tradie means you get to work from anywhere. Once your business picks, you will travel nationwide to offer your services. That is more fun than being enclosed in a small office.
You spend your days moving around, enjoying the external breeze and focusing on different jobs. Being a tradie allows you to interact with different kinds of people, and you often get to meet influential people you wouldn’t see in an office environment.
5. Wages
As a tradie, the more you polish your skills, the more opportunities to earn better will come your way. That means your salaries are flexible and not determined by the hours you spend in an office.
If you are planning on being a tradie, we advise that you get your business a licence on the skills you have specialised in. The reason is that the licence will make you more credible, allowing you to earn better.
Licences will also allow you to open your own business and employ other tradespeople to work in your company.
6. Travel
More opportunities will come as you practise and market your skills. You will also likely start travelling to other cities to offer your services. Remember, the demand for skilled labourers will never fall short.
7. Satisfaction
All tradespeople have one thing in common; the satisfaction of a well-done job. The job that comes from driving around to witness buildings or projects you have taken part in the building is immeasurable.
Seeing other people enjoy your work is satisfying, and that’s the mood tradespeople end their day with.
What is the Average Tradie Salary in Australia?
Every kind of tradies earns their monthly salary, depending on a few factors like;
- location,
- Experience,
- Kind of specialty.
Even so, we have highlighted a few of the best-paid tradies in Australia from a survey conducted in 2021. They are as follows;
- Plumber: Plumbers in Australia make between $70,000 and $120,000 annually.
- Welder: You can earn between $59,000 and $81,000 yearly as a welder.
- Electrician: Most electricians make between $69,000 and $91000 annually.
- Carpenter: If you intend to pick on carpentry, expect your salary to range between $59,000 and $79,000 annually.
- Mechanic: Most mechanics make between $49,000 and $74,000 annually.
The Highest Earning Tradies
We researched most tradies in Australia, but we have only highlighted the top 10 best-paid tradies for accuracy. These are the occupations we have sufficient data for.
Comparing the figures with 2022, we have noted that some tradie’s tradies have remained constant.
Once again, Boilermakers have managed to retain their position as the best-earning tradies making about $108,947 annually. This number, however, has reduced by 6% from the other years.
Second in line are electricians, making about $91,445 annually. The number has decreased only by 0.36% compared to last year. Plumbers finalised the top list with an annual salary of $89,568. Unlike the rest, plumbers increased their income by 3.7% compared to the previous year.
Well, there are tradies in these fields who make much more than the figures we have highlighted. However, our figures are based on what most people make.
| Rank | Change | Trade | Income | Change |
| 1 | – | Boilermakers | $108,947 | -6.2% |
| 2 | – | Electricians | $91,455 | -0.4% |
| 3 | – | Plumbers | $89,568 | +3.7% |
| 4 | +6 | Tilers | $86,048 | +15.8% |
| 5 | -1 | Plasterers | $79,081 | -5.3% |
| 6 | +2 | Carpenters | $77,772 | +0.5% |
| 7 | – | Cabinetmakers | $74,192 | -6.5% |
| 8 | +1 | Painters | $70,389 | -6.3% |
| 9 | -4 | Bricklayers | $68,634 | -17.7% |
| 10 | -4 | Landscapers | $68,323 | -14.8% |
Tilers pushed themselves in the past few years, making it top 5 of the best-paid tradies from position 10 in 2018. The rise included a case of 16% of their annual income.
Carpenters also enjoyed an increase of 0.6%, causing them to move from the 6th to 8th position. The addition topped their salaries to $78,000 this year.
Same way, we have traders that dropped in position. The landscapers and bricklayers went down by four places to the 10th and 9th positions, respectively.
They also dropped in salary by about 15%. The bricklayers suffered an 18% drop, while the landscapers fell by 15%. Their wages this year are both at $70,000.
However, note that the number of landscapers who participated in this survey was much lower than in the other years. Therefore, our numbers are likely less accurate than we’d hoped.
Other droppers this year are;
- Bookmakers, with a 6.5% drop
- Cabinetmakers, with a 6.2% drop
- Electricians, with a 0.5% drop
- Painters, with a 6.3% drop
- plasterers, with a 5.3% drop.
However, all these tradies except the cabinetmakers enjoyed a rise in their salaries last year. Even so, their current salaries are still above what they were in the previous years.
Other Trades
In addition to the ten traders, there are more that we haven’t included in the top 10 list for accuracy purposes.
Please note that the data supporting these trades is low, so don’t focudon’t much on the numbers.
- Shopfitter with $79,000
- Flooring Contractor making $100,500
- Roofing Contractor making $83,000
- Fencing Contractor making about
$83,000
- Joiner – $90,000
- Air Conditioning with $107,000
There are still others with low salaries, and therefore couldn’t be on our list. However, they could have made the top 10 of the list if there were more entries. Along them are stonemasons, earthmovers, scaffolders, riggers, concreters, and refrigeration technicians.
Non-Trades
We still have other occupations that could have cracked our list, but the people are not traders. Therefore, we chose to leave them out of our inventory. However, their salaries are still good so that you can opt for them.
The first one is handymen, who make about $69,000. The number isn’t far isn’t top 10 list of top earners.
The second on that list are Builders, who make about $83,000 annually, but the number isn’t so accurate. The reason is that some tradies, like carpenters who have smaller businesses, still opt to call themselves builders. However, we still have genuine builders who make as much.
Comparison to the National Average
From statistics we collected in 2019, the general amount that tradies earn is $82,000, which is taxable. While still impressive, this number represents a drop of 0.3% from 2018.
Although the reduction wasn’t significant, it would have been better to see them get an increase in their salary. However, the salary dormancy in Australia cuts across all fields, so you shouldn’t worry.
Most people in Australia make about $89,000 annually, from research that ABS conducted. This shows that the amount that tradies make yearly is close to what most people from other occupations or businesses make. However, the gap has increased a bit from last year’s statistics.
How close these figures make us confident that $82,000 is what most Australian tradies make annually.
You should note that these figures include tradies who operate alone and those hired by other tradies. In contrast, the general statistics represent all Australian employees, including CEOs.
Therefore, you shouldn’t use tradies simply because they are slightly lower and can make the overall Australian income. It doesn’t necessarily mean they earn less than the everyday white-collar office man.
Overall Income Bands
The difference between last year and this year isn’t that it isn’t. The salary range of most tradies was about the same. The number of tradies who earned an average of $50k dropped by 1.9% from last year. This means that more tradies moved up in the salary ranges.
Those who made between $49k and $76k increased by about 2.1%. This is probably from the tradies who rose from the minimum salary range—the number of people who made between $74k-$101k and $101k-$151k dropped by about 1%.
The number of the tradies who make between $151k and $251k remained constant, while those who make over $250k dropped by 0.1%. There wasn’t a significant difference between last year and this year, but seeing tradies jump from the $50k range to the next bracket is quite a relief.
Major Observations
Each year comes with a different kind of surprise regarding salaries. We’ll know. We’ll focus on the changes we have seen with tradies salaries in the last four years we have analysed.
Stability at the Top
The top 3 best earning tradies have remained constant for three straight years.
We also had four kinds of tradies moving downwards by four or more positions, while the rest remained constant.
The change in data could result from more detailed research, which results in more accurate reports.
Electricians – Declining for the First Time
We have never had electricians suffer a drop in income from the time we started conducting interviews. 2019 was the only year when their salaries dropped about 0.3%, which still was relatively insignificant.
However, this drop also qualifies as a margin error from our reports.
- In 2016, their salaries rose by 4.4 %
- In 2017, by 4.3%
- 2018, by 3.2%
Factors Affecting a Tradie in Australia
Each trade has its format for billing its services. Some tradies prefer to bill monthly, while others charge after completing the project. While all methods are great, you must consider a few things. Here are the main ones:
Understanding Your Costs And Overhead
You must carefully analyse how much you’ll need to complete your work. That means calculating the salaries, time spent, cost of materials and overhead costs like repairs that could come up.
While it may seem like the most straightforward task, you need to be careful, as this is where most tradies get it wrong.
Regardless of your field, you will never run from overhead costs. Therefore you must analyse what they are and include them in your billing.
What Are Overhead Costs?
These are the costs you incur as you run your business. You must note that they aren’t from labour or materials but costs like rent, office materials, benefits, shipping, taxes, marketing, internet or phone charges.
Although most of them can seem insignificantly low, you should always incorporate them in your billing lest you begin to suffer losses. Therefore, ensure you highlight all costs, even the small amounts, and bill them. From there, you’ll start seeing changes in profit margins in your business.
The Level Of Experience And Expertise Of The Tradie
The higher your experience as a tradie, the higher your charges are allowed to be. You cannot compare what a newbie makes to a tradie with 20 years of experience.
However, to get to that point, you’ll need consistency as you produce high-quality services that will attract praise. You could start by charging slightly less than your competitors while providing equally excellent services to penetrate the market.
The Location And Competition In The Area
Before you start pricing your services, you’ll need to research and find out how tradies in your area charge and how many they are.
While it may seem like a great idea to charge yourself less to attract new clients, you shouldn’t. That way, you’ll retain your profits and maintain a good reputation while penetrating the market. Customers might think your work is a throw if you charge too low.
The Type And Complexity Of The Work Being Performed
Finally, your pricing should depend on the kinds of tasks you perform and less on the hours you spend while at it.
Tasks you carry out in dangerous areas will earn you more bucks compared to the usual environment. Additionally, more complicated tasks will likely make you more money than regular ones.
This Is How You Start as a Tradie
Step 1: Choose Your Trade
There are several options to pick from as you begin your journey of being a tradie, so you should put more thought into that. However, Australia offers a course that allows you to sample various tradies tasks and pick the one you enjoy the most.
The Certificate II of Construction Pathways is where you should start to sample tradies’ multiple tasks.
Step 2: Start an Apprenticeship
Once you select your major, you should apply to study in a building school for Certificate III. An excellent example of a school that offers said kinds of services is the Builders Academy in Australia.
While at it, you can work and earn all day as you study at night. The best part of cert 3 is its flexibility to read at any time of day. Some schools connect you to employers in the area to practise as your study for cert 3.
Step 3: Get a Licence
Finishing your apprenticeship and cert three makes you a fully qualified tradie, ready to start working on projects. You can seek employment immediately or broaden your skills for better opportunities.
You can register with the Victorian Building Authority and then do your Certificate 4, after which they give you complete guidance in your career. They also help and ensure you get your builders licence.
Step 4: Take Your Career to the Next Level
The easiest way to increase your income is by improving your qualifications by taking extra courses. You can take a diploma in Building and Construction, where they strengthen your building skills.
Once you complete your 4th certificate or diploma, you can go ahead and start as a supervisor of construction projects or become a manager in the construction industry. These jobs will make you more money than being hands with the tools.
Supervisors and managers also have higher demands in Australia with better-paying opportunities.
How Do I Communicate My Pricing Strategies With Clients?
Most, if not every, client you come across will.put you up to a challenge when it comes to pricing. Not many of them will take your word for it when pricing your services.
Although it may seem a bit scary, the explanation you give is what convinces them that you are not extorting their money. However, you need to be confident to provide a convincing run because if you lower your prices, the clients may think you are trying to steal from them.
Follow the following tips for proper communication with your clients;
- Ensure you’re the first to speak about pricing: You are the expert.
- Listen to your customers: If they bring a new offer to the table that you resonate with, listen to them and consider their requests. Doing this may earn you a new customer.
- Be bold. You need to be brave and stern as you defend your pricing. Being frail doesn’t do justice but hurts your services. Remember, it’s a business, and you need to cut even to make a profit.
- Be open with your customers: You don’t want to leave them feeling like you stole their money to make a profit. Therefore, you should carefully make them understand why you charge them those prices. Doing so will also help build trust with your clients.
- Be fixed on your decisions: If you have calculated your pricing and seen that it works for you, you should be stern about your choices, although the customers will try changing your mind. However, if a client needs extra services or changes their original order, you can open your initial price to negotiation and incorporate their new asks.
- Remain patient: If you disagree with a customer because of pricing, stay patient and open a friendly conversation to clarify the misunderstanding.
That said, some clients want the best services for the lowest pay. In such cases, you can kindly dismiss the client to save you frustration.
Tips For Managing Your Pricing And Staying Competitive
Each day comes with new changes in the tradies business. Therefore, to stay relevant, you must be on top of the game regarding pricing and accommodate the daily challenges.
1. Remove the Guesswork
You should never be in a hurry to draft an invoice for your clients, as this could lead to a possible loss. That said, you should take some time off your usual schedule and prepare an invoice for all your clients. However, ensure you can support the invoice you present to your clients.
2. Talk to Your Team
Whenever you send your team outside, they will speak for you. Hence, their positive or negative impact will automatically reflect on your business.
Therefore, ensure you have an open line with them where you are communicating as they update you on what is happening in their day-to-day business. Let them share new ideas they have picked from other tradies or your customers.
3. Subscribe to Magazines or Trade Journals
The internet has made everything easy. Therefore you should research the various websites that keep up with tradies and subscribe to them. Doing this will keep you on top of the game with current trends.
4. Network
There are various ways you can connect with other tradies. Among them include joining specialised groups on social media and interacting more with your colleagues.
Current Trends Influencing New Pricing Strategies For Tradies
Being used to a certain amount, your clients will not be thrilled when you tell them you’ll sing the cost of your services. However, it’s understandable since, just like you; they are also facing a hard time with the rising cost of living.
With taxes high, everything is now expensive. Therefore, as your service price, you must incorporate the increased prices of raw materials and the increased cost of living. You should also ensure that as your price, you remain relevant and competitive, not lose your loyal clients.
Remember that your clients are also going through a hard time, so being understanding and compassionate will go a long way. As you do so, you’re retaining and gaining more loyal customers.
Conclusion
If you aim to earn more than the average Australian, review our list and see the services that will raise your income past $89,000 annually.
However, even if most tradies earn less than the average income, some still exceed that. Our income is the average amount of all trades, including those employed or making below the $50k mark.
You must have heard of carpenters who make above $100k. However, when you look at our list, you’ll not. You’ll carpenters earn less than the average Australian income.
You shouldn’t despise a trader because they earn less than average. With the right skills, hard work, and consistency, you can easily surpass the $100k mark- many have.
How Much Do Tradies Earn? FAQs
Which Tradie Makes the Largest Amount of Money?
Tradies also make a large amount of money from their skills. For example, Electricians make an average of about $100,000, followed by welders who make $91,000, then carpenters making about $86,000.
Are Tradies Paid Well in Australia?
The average tradie makes between $71,000 and $81,000 annually.
What Are Tradies Known For?
Also known as a tradesperson or a tradesman, they are known for their high skill level in specific crafts they have specialised in. They are professionals with expert skills to apply the practical and theoretical parts of their abilities.
How Much Do Australian Tradesmen Make Per Hour?
The daily tradesman makes about $36 hourly, about $70,000 annually.
How Many Hours Do Tradies Work?
We conducted deep research to see the approximate number of hours that tradies work, and here is what we discovered; about 46% of them work between 9-11 hours, and 10% clock in more than 11 hours daily.
What Is the Fastest Trade to Learn?
Generally, tradies’ jobs are easy to learn. However, welding is considered the easiest to learn and start earning from. Most people who study welding complete their course within six months and start earning immediately.
However, you can still get into welding as you learn for a job that pays much better.
Why Do Tradies Wear Shorts?
Their work requires frequent movement, which generates a lot of heat. Therefore, most prefer comfortable shorts to remain focused and give their best at work. The excess heat is also known to cause skin rashes.
Why Are Tradies Always Late?
Most tradies often bite more than what they can swallow. Some of their jobs take longer than anticipated, and they can only leave once their job is complete. Therefore, you’ll often find them falling behind regarding time.
Why Is There a Shortage of Tradies in Australia?
After COVID hit, there has been a high demand for tradies. However, even before then, Australia still had a shortage of tradies.
Additionally, delays in shipping the raw materials used by Aussies are currently in low supply.
Which Trade Is Hardest to Learn?
HVAC and Electrical need more detail and extensive, which makes more people consider it problematic. Being an electrical student, you’ll learn many things, from installation to maintenance of electrical equipment.
What Trade Is the Hardest Work?
Of the 32 trades, electrical, carpentry, and HVAC are the hardest to grasp. We got this information from a survey of two different groups of tradies, all 40-45 years.
Which Trade Job Is the Easiest?
Out of the 32 trades, electrical and pumping work requires much less muscle. However, you shouldn’t because of their reputation since each business has its challenges. If welding excites you, by all means, pick it.
Why Are Tradies Called Tradies?
Tradies were derived from the merchant to mean work that requires an extensive skill set. A merchant is someone who works with their hands.
Is There a Shortage of Tradies in Australia?
Yes, there is a trade shortage in Australia and other countries.
On average, about 45% of everyone who applies for a trade course drops out before the course is over.
How Many People in Australia Are Tradies?
As of Feb 2023, we have about 1.9 million tradies in Australia. The number significantly improved from 2022, when we had about 1.8 million tradies.
How Do I Look Like a Tradie?
It would help if you had boots to keep your feet safe from accidents and prevent you from falling because of oily surfaces. Also, carry long-sleeved shirts to protect your arms from sparks and appropriate headgear to protect you from the scorching sun and falling objects.
Always dress appropriately as a tradie; dressing can be a life-or-death occurrence.