‘Struggling’: Aussie tradies reveal how much they really earn

Despite having a reputation for being “cashed up”, Aussie tradies have admitted they “definitely” don’t feel rich in 2024, even with a six-figure income.

The cost of living crisis is getting so bad that not even tradies feel rich now.

It is an expensive time to be alive. According to the Australian Bureau of Statics, annual CPI inflation increased to 3.8 per cent in the June 2024 quarter, up from 3.6 per cent in the March quarter.

The national median house price has soared to over $900,000, making homeownership a distant dream for many. The average rental cost has also skyrocketed, now over $600.

Sure, you can be frugal and savvy and start making your coffee from home, but there’s no cheap way to live now, and even tradies – known for being cashed up – are feeling the stress of the cost of living.

It might not have them shaking in their steel-capped boats, but it worries them.

Matthew Richardson, 34, is an electrician making over six figures yearly. When asked if his salary makes him feel rich, he replied, “Not at all”.

Matthew Richardson says his $150,000 salary doesn’t make him feel rich. Picture: Supplied

He said his wage is ‘fair’. Picture: Supplied

Mr Richardson is based in Victoria and brings home $150,000 after tax, and he certainly isn’t complaining about his salary.

“I feel that what I earn is fair in a broad view, but the current cost of living can make it feel unfair in the sense that I don’t earn much money above what I need to live and pay bills,” he told news.com.au.

The tradie makes a decent living, but he doesn’t think bringing six figures home makes you wealthy anymore.

“With the current climate of mortgages and household bills, I would consider someone earning above $300,000 to $400,000 after tax as a rich person,” he said.

According to financial comparison website Finder, just 15 per cent of Australians earn above $100,000, and 49 per cent of Aussies, including those earning over $100,000, say they could only survive up to a month living off their savings if their income dried up.

In Mr Richardson’s case his six-figure salary doesn’t go towards luxuries but rather covers his necessities. Think fewer jet skis and boats and more paying the water bill.

“My salary almost entirely goes towards the house mortgage and the household bills. The cost of living at the moment does not leave a budget for hobbies or holidays,” he said.

Tradies aren’t feeling that rich anymore. Picture: iStock

Of course, he is aware of the common belief that tradies are cashed up, but in his experience, that isn’t the case.

“It’s not a common thing and there are far more tradies struggling to make ends meet than what you would consider a cashed-up tradie,” he said.

Mr Richardson said that earning heaps of money as a tradie has less to do with skill and more to do with word of mouth.

“It’s who you know not what you know. A salary in the trade industry is less about your knowledge and expertise in your trade and more about the area of the industry you are in and, who you are working for or with and how cheap you can do the job,” he said.

Sydney-based builder Steven Sousamlis runs his own bathroom renovation business and is bringing in “around a million dollars” but isn’t lining his pockets with it.

“If only I got to see some of it,” the 28-year-old told news.com.au.

“People often see a rounded gross figure and forget that there are also many expenses associated with running a business, especially a construction one.”

The business owner said he does not get to ‘see’ much of his profits. Picture: Supplied

The 28-year-old tradie doesn’t own a home. Picture: Supplied

Mr Sousamlis said that he “definitely” does not feel rich, has yet to get on the property ladder, and his lifestyle is a far cry from lavish.

“I don’t own a home or a jetski, unfortunately. As a business owner focused on growth and scaling, you don’t always get to ‘reap the rewards’ because the majority of the income is reinvested into the business. More often than not, I don’t even take a salary,” he said.

The 28-year-old said that the majority of the cash left over after paying his bills is “reinvested back into” his business.

“Don’t get me wrong, I still get to enjoy the finer things in life, but I’m very conscious of how often I indulge. It’s more of a reward to myself if anything,” he said.

He understands why people might think that most tradies are cashed-up, but he stresses that isn’t normal.

In fact, Mr Sousamlis reckons it is more common to pretend to be rich than actually be rich.

“It’s not difficult to buy a fake nice watch or rent a supercar or boat and flaunt it online,” he said.

Mr Sousamlis is an advocate for his industry and believes tradies should be earning more.

“Of course, I’m biased and believe we should earn more. People often overlook the substantial costs involved in running a trade business, which are, again, at an all-time high,” he said.

“Additionally, a small yet severely overlooked component is the cost of tools required for a project or even the specific tools needed for a single job, which can amount to thousands, if not tens of thousands.”

The young tradie stressed there’s more costs than people realise and most of the time workers aren’t pocketing as much profit as you’d think.

“Tradies invest significant hard work, money, and skill into their projects and in perfecting their craft, so their earnings should reflect the true value and costs of their work,” he said.

According to job search platform SEEKthe annual salary for a tradie jobs in Australia in 2024 ranges from $75,000 to $95,000.

The only tradie job options with a median salary above $100,000 are for those working in mining, resources and energy.

In 2023, insurance company Trade Risk released a report on self-employed tradie earnings that found the average tradie made just above $90,000 a year.

The data was collected from over 3000 self-employed tradies and it found that boiler makers, electricians, and plumbers earned the highest average, netting over $90,000 a year.

The report also showed a wage trend: tradies are moving into higher income brackets, and the most considerable growth across the board was for tradies moving up into six figures.

Tradies earning $100,000-$150,000 grew from 9.6 per cent to 17.7 per cent, the $150,000 – $250,000 range doubled from 2.0 per cent to 4.2 per cent, and the $250,000 range was unchanged at 0.3 per cent.