How much should I charge per hour as a sole trader?

Enough to cover the salary you'd earn as an employee, plus super, business costs, and the weeks and hours you can't charge for. For an $80,000 salary that's usually about $80 to $90 an hour before GST.

Do sole traders have to pay themselves super?

No, super isn't compulsory for your own income as a sole trader. But without it you'll retire with much less, so it's worth pricing it in and contributing yourself. You may be able to claim those contributions as a tax deduction.

Should my hourly rate include GST?

Quote customers the GST-inclusive price if they're consumers, and make it clear either way. Work out your rate before GST first, then add 10% if you're registered.

What is a billable hour?

An hour you can charge a customer for. Time spent quoting, travelling, buying materials, doing paperwork and chasing payments is work, but usually isn't billable.

How do I work out a day rate?

Multiply your hourly rate by the billable hours in a typical day. The calculator uses your weekly hours divided by 5, times your billable share.

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Sole trader

Hourly Rate Calculator

The hourly rate to charge to earn the same as a salary, after super, time off and business costs.

To match a job paying $80,000 plus $9,600 super, and cover $15,000 of business costs, you need to bring in $104,600 a year. After time off and the hours you can't charge for, you'll bill about 1,254 hours a year, so charge at least $83.41 an hour, or $91.75 with GST.

Tax year

Salary you want to match

What an employer would pay you for the same work, before tax

Pay myself super like an employer would

Business costs a year

Insurance, vehicle, tools, phone, software, accountant, income protection

Hours worked a week

hrs

Weeks off a year

wks

Holidays, public holidays, sick days and wet weather. An employee gets about 8.

Billable share of your hours

The rest goes on quoting, travel, admin and chasing invoices

Hourly rate

$83.41

before GST

With GST

$91.75

if you're registered

Day rate

$475

before GST

Billable hours a year

1,254

Employee's hourly rate

$40.49

You need to charge 2.1 times what an employee on the same salary is paid an hour

Salary	$80,000
Super (12%)	$9,600
Business costs	$15,000
Money you need to bring in	$104,600

Use these numbers in

Opens the calculator with your figures filled in.

Tax to set aside on $104,600

How this is calculated

Money you need = salary + super at the 12% super guarantee rate + business costs. Billable hours = hours a week x (52 - weeks off) x billable share. Hourly rate = money you need / billable hours. GST adds 10% on top if you're registered, and it isn't yours to keep. The rate is before income tax, the same as a salary is.

Rates checked September 2026 against the ATO.

Why your hourly rate needs to be higher than an employee's

An employee on $80,000 is paid about $40 an hour: $80,000 over 38 hours a week for 52 weeks. Charging $40 an hour as a sole trader leaves you well behind them, because an employer also pays for things you now have to cover yourself:

Super. Employers pay 12% on top of salary. Nobody pays yours unless you do.
Paid time off. Employees are paid for 4 weeks of annual leave, public holidays and sick days. You earn nothing in those weeks.
Hours you can't bill. Quoting, travel between jobs, buying materials, invoicing and bookwork are all work, but no one pays for them by the hour.
Business costs. Insurance, your vehicle, tools, phone, software, an accountant and income protection.

How to work out your rate

Add up what you need to bring in: the salary you want to match, super on top, and your business costs for the year. Then divide by the hours you can actually charge for.

Example: to match an $80,000 job with 12% super ($9,600) and $15,000 of business costs, you need $104,600 a year. Working 38 hours a week, with 8 weeks off for holidays, public holidays, sick days and wet weather, leaves 44 weeks. If three-quarters of your hours are billable, that's 1,254 hours, so you need to charge about $83.41 an hour, or $91.75 with GST.

That's a little over twice the employee's hourly rate, which is why a rough rule of thumb is to charge 1.5 to 2 times the hourly rate for the same job as an employee.

What to put in each box

Salary you want to match: what an employer would pay you for the same work. Job ads and award rates for your trade or role are a good guide.
Weeks off: 4 weeks of leave, about 2 weeks of public holidays and 2 weeks of sick days gives 8. Add more for wet weather or quiet periods if your work is seasonal.
Billable share: 100% means every hour you work is paid for. Most sole traders bill 60% to 80% of their hours. It's lower when you're starting out or spend a lot of time driving.
Business costs: everything the business pays for in a year that an employer would normally cover. Don't include materials you charge the customer for.

GST and income tax

The rate is before GST. If you're registered for GST, add 10% on top when you invoice, and hand that to the ATO. The GST calculator does the sum for any amount.

The rate is also before income tax, the same way a salary is. Income tax comes out of the money you bring in, so keep part of each invoice aside for it. The sole trader tax calculator shows how much.

Frequently asked questions

Sources

General info only. This is a calculator, not financial advice. Rates and thresholds shown are current for FY 2026-27 and simplified for clarity. Always confirm figures with the ATO or a licensed adviser before making decisions.