What Does a Good Tradie Business Actually Look Like? (The Real Numbers)

By Dan Reeve — Working handyman and founder of SMASH Invoices. Built SMASH after losing $1,200 in uninvoiced jobs in a single year. He still takes on handyman work and uses SMASH on every job. About Dan →

A sustainable one-person trades business in Australia earns $80,000–$130,000 gross per year, retains 50–65% after vehicle, insurance, tools, and materials costs, works 4–5 days per week, invoices same-day on most jobs, and has 30–60 days of expenses in reserve. Most tradies who've been in business 3+ years are capable of reaching these numbers. Most don't, because the billing gaps eat the difference between "doing fine" and actually building something.

The numbers most tradies never run

I didn't run proper numbers until my accountant sat me down in year three.

I was working five days a week. Busy. Turning work away sometimes. The phone was always on. And I was taking home about $52,000 after everything.

On paper, the business was "going well." In reality, I was earning $26 per hour net when you factored in actual hours worked including admin, travel, and all the work that didn't get invoiced properly.

Here's what the numbers looked like when we broke it down:

That looked okay until we added what I hadn't invoiced:

Properly invoiced revenue should have been $139,400. I captured $87,000. I lost $52,400, more than 37% of what I should have earned, to invoicing gaps alone.

What "good" actually looks like

A well-run one-person trades business at the 4-day work week I was aiming for:

Gross revenue target: $110,000–$130,000 for a handyman/plumber/electrician at current Australian rates

Realistic net after expenses (35–45% margin on materials trades): $65,000–$80,000

Hourly rate required: $75–$110 depending on trade, to hit these numbers at 35–40 billable hours/week

Invoicing system: Same-day, every job, with materials captured by voice

Reserve target: 60 days of operating expenses (~$8,000–$12,000)

Work schedule: 4 days tools, 1 day admin, quotes, and maintenance (not 6 days tools + Sunday night admin)

This is achievable for most experienced sole traders. It's not a fantasy. But it requires the billing to match the work, which most people don't have until they fix the system.

What SMASH changes in the numbers

For a tradie doing 20 jobs per week and capturing materials accurately:

• Materials invoiced properly: +$5,200/year
• Fewer forgotten invoices (invoice at job = none forgotten): +$2,400/year
• No Sunday pricing errors: +$5,000–$20,000/year depending on error rate
• Faster payment (portal link vs. emailed PDF): better cash flow

Total annual improvement estimate: $12,600–$27,600 for an average sole trader.

At $14.99/month ($180/year), the return on SMASH Invoices is 70×–150× the subscription cost.

Frequently asked questions

What is the average income for a sole trader tradie in Australia? The ATO's taxation statistics show median taxable income for self-employed tradespeople ranging from approximately $45,000 for cleaners and gardeners to $70,000–$85,000 for electricians and plumbers. These figures are after business expenses and before personal tax. Top-quartile sole traders in trades earn significantly more.

How many hours per week should a sole trader work to make $100,000? At $85/hr billable rate, $100,000 gross requires approximately 1,176 billable hours, roughly 23 billable hours per week for 50 working weeks. Most trades charge more per hour than $85, meaning fewer billable hours are required. The challenge is maximising the ratio of billable to non-billable time, which invoicing efficiency directly affects.

What expenses can a tradie expect as a percentage of revenue? For a typical sole trader trades business: materials 15–30% of revenue, vehicle 8–12%, insurance 3–5%, tools 3–6%, admin/software/marketing 2–4%. Total expenses typically 35–50% of gross revenue for most trades.

How do I calculate my actual hourly rate as a sole trader? Take your annual net income ÷ total hours worked (including travel, admin, and unbillable time). Most sole traders who do this calculation discover their effective hourly rate is significantly lower than their charged rate, because unbillable admin time is eating into the margin.

What is a good profit margin for a sole trader tradie? For a materials-intensive trade (plumbing, electrical), a net profit margin of 40–55% after materials, vehicle, and insurance is healthy. For labour-intensive trades with low materials cost (cleaning, gardening), margins of 55–70% are achievable. These are pre-tax figures.

Good business. Four days tools. Invoiced before leaving every job. Start Free →

Internal links: Why trades businesses fail in year 3 · How much are you losing on uncharged materials?