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How much does it cost to start a trade business?

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The short answer

Typical startup costs for Australian tradies

Most Australian tradies need $10,000 to $45,000 to set up, before the ute. A solid start is about $20,000 to $26,000. Then have three months of living and running costs in the bank, because work starts slowly and customers pay late.

Bare bones$10k to $14kOnly what you must have
Solid start$20k to $26kSet up properly
The full kit$36k to $45kLook established from day one

Setup costs only, across ten trades, excluding a vehicle. Typical Australian figures, September 2026.

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Where the money goes

ABNFree
Business name (ASIC)$47 a year
Contractor licenceAbout $800, varies by state
Public liability, $5M$500 to $2,200 a year
Tools you still need$2,000 to $10,000+
Fit out and signage$800 to $5,000
Tickets and safety gear$500 to $1,200
Logo and website$0 to $5,500
Software$900 to $2,000 a year
Cash for materials$3,000 to $8,000
New ute on finance$1,235 a month

What you need to charge

You won't bill every hour. Quotes, travel, admin and chasing money can eat a third of your week. Work out your rate from the hours you can bill, not the hours you work.

Electrician$100 to $180 an hour
Plumber$100 to $175 an hour
Carpenter or builder$85 to $160 an hour
Tiler$60 to $110 an hour
Painter$55 to $100 an hour

Metro rates, 2026, excluding GST. A guide, not a target.

Common questions

Do I need a company to start?

No. Most tradies start as a sole trader. An ABN is free and a business name is $47 a year. Ask your accountant when a company makes sense.

When do I have to register for GST?

Once your turnover reaches $75,000 a year. Quote your rates excluding GST, then add it on top.

How much is public liability insurance for a tradie?

About $500 to $2,200 a year for $5 million of cover, depending on your trade. Higher risk trades pay more.

How much should I have saved before I go out on my own?

Your setup costs plus at least three months of living and running costs. Six months is safer. For a solid start that is about $40,000 to $60,000.

What catches new tradies out in year two?

Tax. After your first good year you get the tax bill, and the ATO starts PAYG instalments for the next year at the same time. Put money aside from day one and check with your accountant.

Planning figures only, not financial, legal or tax advice. Sources: ASIC, ATO, QBCC, RACQ, insurer and supplier price guides. Updated September 2026.

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