Why your hourly rate is probably wrong (Australia)
Three mistakes almost every Australian sole trader makes — and what to do instead.
1. The billable hours trap
You work 40 hours but only invoice 25. Quoting, travel, invoicing and admin are unpaid. If you set your rate on 40 hours, you're losing 37% of your income before you start.
2. The overheads blind spot
Insurance, accountant, software, phone, vehicle, tools. They quietly add up to $10,000–$20,000 a year for most sole traders — and every dollar comes off your billable hours, not your wage.
3. The no-super trap
Employees get 12% super on top of their wage. Sole traders get nothing unless they pay it themselves. Skip this and you're effectively taking a 12% pay cut for the rest of your career.
What different Australian trades typically charge
- Electricians and plumbers: $90–$180/hr ex-GST
- Graphic designers & copywriters: $90–$200/hr ex-GST
- Developers & technical consultants: $120–$280/hr ex-GST
- Virtual assistants & bookkeepers: $55–$120/hr ex-GST
Ranges are indicative only — your real rate depends on overheads and billable hours.
How to raise your rate without losing clients
- Quote new clients at the new rate from today.
- Give existing clients 30–60 days written notice.
- Anchor the change to outcomes you deliver, not your costs.
- Be willing to lose your bottom 10% — they're usually the most demanding.
Frequently asked questions
How do I calculate my hourly rate as a sole trader in Australia?
Add your target income, business overheads and a super buffer, then divide by the hours you can actually bill in a year. If you're registered for GST, add 10% on top when you invoice.
What is a good hourly rate for a freelancer in Australia?
It depends on overheads, industry and billable hours, but most full-time Australian freelancers need to charge $90–$180/hr ex-GST to take home a comfortable income after costs and super.
Do I need to charge GST on my hourly rate?
If your annual turnover is over $75,000 you must register for GST and add 10% to your invoices. Below that threshold registration is optional.
How many billable hours does a freelancer work per year in Australia?
Realistically 1,000–1,400 hours. A full-time worker has roughly 2,080 hours on the clock, but admin, quoting, leave and quiet periods cut billable time by 30–50%.
Should I include superannuation in my hourly rate?
Yes. Sole traders don't receive employer super, so build at least 12% of your target income into your rate and contribute it yourself.
What is a charge-out rate for tradies in Australia?
Your charge-out rate is the hourly amount you bill clients. It must cover wages, super, vehicle, tools, insurance, admin and a profit margin — not just your wage.
How do I raise my hourly rate without losing clients?
Give existing clients 30–60 days notice, anchor the increase to value delivered, and quote new clients at the new rate from day one. Most clients accept reasonable rate rises.
What's the difference between my hourly rate and my charge-out rate?
They're usually the same thing — the price you charge per hour of work. 'Charge-out rate' is more common in trades and consulting; 'hourly rate' in freelance and creative work.