As an integral part of Australia’s workforce, tradespeople, or ‘tradies,’ encompass a wide range of professionals from electricians and plumbers to carpenters and builders.
The question of how much a tradie earns in Australia is complex, influenced by factors such as the specific trade, level of experience, geographic location, and whether they are self-employed or working for a company.
This article aims to shed light on the income range for tradies across Australia, exploring the nuances that affect their earnings.
It provides a comprehensive overview for those considering a trade career or seeking to understand the financial prospects within this diverse and essential sector.
The Essence of Tradie Earnings
The 2023 report highlights a key financial indicator for the Australian construction industry: tradies’ average annual earnings are $90,940. This figure represents more than mere earnings; it reflects the economic well-being of a significant workforce segment in a vital industry.
The report focuses on personal taxable income, offering a realistic view of tradies’ earnings. This approach considers actual take-home pay after expenses like equipment costs, insurance, and taxes, providing a truer picture than gross revenue or charge-out rates.
It accounts for real-world scenarios of self-employment, emphasizing the income remaining after all necessary deductions.
Detailed Insights into Top Earning Tradies
Tradie earnings not only provides an average figure but also delves into the specifics, offering a detailed breakdown of the top 3 earning trades.
This granular analysis reveals interesting patterns and shifts within the industry, highlighting the trades that are currently leading in terms of earnings.
- Boilermakers: At the pinnacle are boilermakers, with an impressive average income of $112,535. This figure marks a modest but significant increase of 3.3% from the 2019 report, signaling a stable demand for this specialized skill set.
- Electricians: Following closely are electricians, earning an average of $96,338. This reflects a 5.3% increase from the 2019 figures, underscoring the ongoing need for electrical skills in residential and commercial settings.
- Plumbers: Plumbers round out the top three, with an average income of $95,507. This is a notable rise of 6.6% from the previous report, indicative of the robust and enduring demand for plumbing services.
Table for top 10 highest earning trades:
| Rank | Trade | Average Income 2023 | Change from 2019 |
|---|---|---|---|
| 1 | Boilermakers | $112,535 | +3.3% |
| 2 | Electricians | $96,338 | +5.3% |
| 3 | Plumbers | $95,507 | +6.6% |
| 4 | Carpenters | $88,979 | +14.4% |
| 5 | Plasterers | $83,327 | +5.4% |
| 6 | Cabinetmakers | $83,286 | +12.3% |
| 7 | Painters | $81,782 | +16.2% |
| 8 | Bricklayers | $81,437 | +18.7% |
| 9 | Landscapers | $80,417 | +17.7% |
| 10 | Tilers | $75,783 | -11.9% |
Other Trades
Several trades and occupations were close to making it into the top ten list this year, but due to the low number of submissions, their data wasn’t considered statistically reliable.
Below is a list of these trades, but it’s important to note that their submission numbers were quite low, so their income figures should be taken with a grain of caution:
- Rigger: $105,000
- Air Conditioning/Refrigeration: $104,153
- Roofing Contractor: $103,457
- Concreter: $99,012
- Flooring Contractor: $96,625
- Fencing Contractor: $90,389
- Scaffolder: $87,500
- Arborist: $86,846
Other trades with even fewer entries, and thus not listed, include form workers, solar installers, earthmovers, and tree loppers. These could make the top ten with more data submissions.
For tradespeople in these fields, contributing data through Trade Risk’s personal accident insurance could help include your trade in future top ten lists, with the added benefit of award-winning service and advice.
Non-Trades Category
Two occupations were considered for inclusion but ultimately not listed as they aren’t strictly trades:
- Handyman: Average income of $75,657, which was close to but needed more for the top ten.
- Builders: Reported an average income of $98,879. However, this figure is ambiguous as it includes genuine builders and carpenters undertaking smaller projects while still identifying as builders.
Geographic Variations in Earnings
A detailed analysis of tradie earnings showcases the income variations across different Australian states, emphasizing how each region fares in average earnings for tradespeople.
This exploration is crucial, reflecting the economic health of trades in various areas and the broader economic forces in play.
- Western Australia (WA): Leading the pack is Western Australia, with an average tradie income of $99,264. This high figure could be attributed to the state’s robust mining and resources sector, which often requires specialized trade skills and offers lucrative contracts.
- Queensland (QLD): Queensland follows, with an average income of $93,981. The state’s diverse economy, encompassing sectors from agriculture to tourism and mining, likely contributes to this strong showing, offering varied opportunities for tradespeople.
- Northern Territory (NT): The Northern Territory, with its unique economic landscape, shows an average income of $91,218. While lower than WA and QLD, this figure indicates healthy earnings, possibly driven by the region’s mining activities and infrastructural developments.
Other states like Victoria (VIC), New South Wales (NSW), South Australia (SA), and Tasmania (TAS) also display distinct average earnings figures, each influenced by their respective economic environments and sectoral strengths.
For instance, Victoria and New South Wales, with their significant urban centers, might see a higher demand for trades related to residential and commercial construction, thereby influencing average incomes in these regions.
The regional economic factors influencing these variations are multifaceted. States with strong resource sectors often provide higher-paying opportunities, given the demand for specialized skills and the challenges of working in remote locations.
Urbanized states, on the other hand, might offer more opportunities in terms of volume but at potentially varying pay scales, influenced by factors such as competition, cost of living, and the nature of projects (e.g., residential vs. commercial).
Table for geographic variations in earning:
| Rank | Change | State | Income | Change in Income |
|---|---|---|---|---|
| 1 | +3 | WA | $99,264 | +17.6% |
| 2 | +1 | QLD | $93,981 | +11.0% |
| 3 | -2 | NT | $91,218 | -21.0% |
| 4 | +3 | ACT | $90,535 | +15.8% |
| 5 | +1 | VIC | $89,990 | +14.9% |
| 6 | -2 | NSW | $87,935 | +11.2% |
| 7 | +1 | SA | $85,037 | +11.5% |
| 8 | -6 | TAS | $75,902 | -13.1% |
Income Bands and Their Significance
The distribution of incomes among tradespeople saw significant shifts in 2023 compared to 2019.
In 2019, 12.8% of tradies earned up to $50k, but by 2023, this decreased to 8.7%, indicating fewer tradies in the lowest income bracket.
The group earning between $50k and $75k, previously the largest, decreased from 38.1% to 31.2%.
A slight increase occurred in the $75k-$100k bracket, growing from 37.1% to 37.8%.
Overall, the proportion of tradespeople earning up to $100k dropped from 88% in 2019 to 78% in 2023, suggesting a shift towards higher earnings.
Notably, the $100k-$150k range substantially increased, rising from 9.6% to 17.7%.
The $150k-$250k bracket doubled, moving from 2.0% to 4.2%, while the $250k+ bracket remained steady at 0.3%.
The most significant growth was observed in tradespeople moving into the six-figure income range. Although the average income is still below $100k, many earn well above this mark.
Comparison to the National Average
The average taxable income for a tradesperson reached $90,940, surpassing the $90k mark for the first time and showing an 11% increase from the 2019 figures.
Comparatively, the national average full-time income in Australia is $99,221, as reported by the Australian Bureau of Statistics (ABS). For those in the construction industry, the ABS cites an average income of $93,704.
Our data is closely aligned with the ABS figures, within a 3% variance. This correlation gives us strong confidence that our statistics accurately reflect the earnings of Australian tradespeople.
It’s crucial to note that our figures predominantly represent sole traders and subcontractors in the trade sector.
In contrast, the national average from the ABS encompasses a broader spectrum of employees, including highly compensated CEOs and executives.
Therefore, even though the average income for tradespeople is slightly below the national average, it doesn’t necessarily imply that an average tradesperson earns less than their non-trades counterpart.
Conclusion
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Whether you’re just starting out or looking to grow your existing trade business, visit our homepage to discover how our digital solutions can drive your success in today’s competitive market. Join us in paving the path to your business growth!