You leave a $40-an-hour job and charge $60 on your own. Sounds like a pay rise. But there’s no paid leave, so it’s 44 working weeks, and only 25 of your 38 hours get billed. That’s 1,100 hours: $66,000 in, minus $25,000 for the ute, tools and insurance. $41,000 left, before tax, no super… about $24.50 an hour.
The fix: divide by the hours you bill, not the hours you work. To match the old job you’d need about $103 an hour (ex GST).
Full Charge-Out Rate explainer is on the channel (Explainers playlist).
Worked example, not a real person. Leave: Fair Work Ombudsman (fairwork.gov.au). Super 12% and “sole traders don’t have to pay super guarantee for themselves”: ATO (ato.gov.au).
General info only – not financial advice.
#Tradies #SmallBusiness #Pricing #Shorts
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