Is a carpentry business profitable in Australia?

Is a carpentry business profitable? In our worked examples, a solo carpenter brings in $138,000 to $230,000 a year in revenue. That assumes 3 to 5 billable days a week at an average of $1,000 invoiced per day, over 46 working weeks.

The owner keeps far less than that. In our four-day example, $184,000 in revenue leaves about $59,500. That is after GST, income tax, the Medicare levy and running costs at the ATO's carpentry services average.

The figures below combine the ATO's running cost benchmarks for carpentry businesses with its 2026–27 tax rates.

How much revenue can a carpentry business make?

Revenue comes from three numbers:

Average invoiced per billable day × billable days a week × working weeks = revenue

Our examples use an average of $1,000 invoiced per billable day, including GST and any materials you charge for. It is an example figure chosen to keep the arithmetic clear, not a market rate, so use your own rate when you run the numbers. We allowed 46 working weeks, leaving six weeks for leave, public holidays and wet weather.

• 3 billable days a week: $1,000 per day × 46 weeks = $138,000 a year.
• 4 billable days a week: $1,000 per day × 46 weeks = $184,000 a year.
• 5 billable days a week: $1,000 per day × 46 weeks = $230,000 a year.

These are worked examples, not earnings forecasts. Billable days are the days you invoice a client for, so time spent quoting, buying materials and doing admin sits outside them.

How much of $184,000 in revenue does the owner take home?

The four-day example below is for a sole trader, with running costs set at the ATO's average for carpentry services businesses of this size. Once GST is removed, all three revenue examples fall in the ATO's $110,001 to $400,000 turnover band.

Here is how the $184,000 in annual revenue breaks down:

• Annual revenue: $184,000, based on 4 billable days a week at $1,000 over 46 weeks.
• Less GST: $16,727, calculated as one-eleventh of GST-inclusive sales.
• Turnover excluding GST: $167,273.
• Less running costs: $93,673, based on 56% of turnover.
• Profit before tax: $73,600.
• Less income tax: $12,600.
• Less Medicare levy: $1,472.
• Left for the owner: About $59,500.

How we worked it out

• GST: As listed in September 2026, a business must register for GST once its current or projected GST turnover reaches $75,000 (ATO). GST is 10%, so one-eleventh of a GST-inclusive price is GST.
• Running costs: 56% is the ATO's average total expenses to turnover for carpentry services businesses with turnover of $110,001 to $400,000, in 2023–24. The ATO notes that the benchmark doesn't apply to cabinet makers.
• Owner's pay: The ATO measures turnover without GST and leaves payments to associated persons out of total expenses. That makes profit before tax the amount left for the owner.
• Tax: Income tax uses the 2026–27 resident rates, plus the 2% Medicare levy. It assumes the business is the owner's only income and is before any tax offsets or super contributions.

What if your running costs are higher or lower?

The ATO's range for carpentry services businesses in this band runs from 46% to 66% of turnover. Here is the same four-day worked example at each end of that range.

• Lower running costs (46%): Profit before tax is $90,327. After $19,425 in income tax and Medicare levy, about $70,900 is left for the owner.
• Average running costs (56%): Profit before tax is $73,600. After $14,072 in income tax and Medicare levy, about $59,500 is left for the owner.
• Higher running costs (66%): Profit before tax is $56,873. After $8,719 in income tax and Medicare levy, about $48,200 is left for the owner.

Every 10 percentage points of running costs moves profit before tax by about $16,700 in this example. Your own result depends on your costs, your business structure and your tax position. A registered tax agent can work out the figures for your business.

What makes a carpentry business profitable?

What keeps a carpentry business profitable is the gap between what you invoice and what the business spends. The ATO benchmarks show how widely running costs vary between carpentry businesses of a similar size.

• Billable days: Each billable day adds $1,000 in revenue in our examples, so one day fewer a week over 46 weeks is $46,000 less. In the four-day example, each week lost to wet weather or a quiet patch cuts revenue by $4,000.
• Day rate and materials pricing: Your average invoice per day depends on your rate, the type of jobs you take on and how you charge for materials. Underquoting the hours or materials on a job reduces what that job earns.
• Vehicle costs: The ATO's benchmark range for motor vehicle expenses is 5% to 8% of turnover in the $110,001 to $400,000 band.
• Paying others: The ATO's benchmark range for labour is 21% to 35% of turnover in the same band. The ATO counts labour as wages plus contractor, subcontractor and commission costs. A solo carpenter who does all the work carries little or none of that cost.
• Insurance and overheads: Insurance, phone, software and accounting fees are running costs that often continue whether you work three days a week or five. Our guide to carpenter insurance costs explains what affects the price.

How does a self-employed carpenter's profit compare with employee pay?

At the ATO's average running costs, our three-day to five-day examples make $55,200 to $92,000 a year in profit before tax. The examples assume no income in the six weeks off.

Jobs and Skills Australia puts median full-time earnings for carpenters and joiners at $1,760 a week before tax, from May 2025 ABS data. Over 52 weeks, that comes to about $91,500. This is an employee benchmark, measuring wages rather than business profit.

Employers pay super for eligible employees on top of their wages, and the super guarantee is 12% in 2026–27. Sole traders don't have to pay super guarantees for themselves, so any super you contribute comes out of your own profit.

How can you estimate your own carpentry profit?

Work through four steps with your own figures:

1. Revenue: Average invoiced per billable day × billable days a week × working weeks.
2. GST: If you're registered, divide revenue by 11 and subtract the result.
3. Running costs: Use your actual costs, or test the low, average and high ratios for your turnover band in the ATO benchmarks. For turnover of $110,001 to $400,000, they are 46%, 56% and 66%.
4. Tax: Apply the 2026–27 resident tax rates and the 2% Medicare levy to what is left.

For example, $900 × 4 days × 44 weeks = $158,400 in revenue. At 56% running costs, profit before tax works out to 40% of GST-inclusive revenue, or $63,360. Then test what moves it: one day fewer a week, a higher day rate or two more weeks lost to weather.

If you're working these numbers out before you start, our guide to writing a carpentry business plan shows where they fit.

How upcover can help

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Frequently asked questions

Is a carpentry business profitable in Australia?

In our worked examples, 3 to 5 billable days a week at $1,000 invoiced per day bring in $138,000 to $230,000 over 46 weeks. In 4 days, a sole trader would keep about $59,500 after GST, income tax, the Medicare levy and running costs at the ATO average.

What is the profit margin for a carpentry business?

On the ATO's 2023–24 averages, total expenses take 56% of turnover for carpentry services businesses turning over $110,001 to $400,000, leaving 44%. That 44% is before the owner is paid and before income tax. Average total expenses are 41% of turnover for businesses turning over $50,000 to $110,000, leaving 59%, and 81% above $400,000, leaving 19%.

Can a carpentry business make $100,000 a year?

In our examples, revenue passes $100,000 3 days a week: $1,000 a day over 46 weeks comes to $138,000. At the ATO's average running costs for carpentry services, $100,000 in profit before tax takes about $250,000 in GST-inclusive revenue. That is more than five days a week at $1,000.

Do self-employed carpenters have to pay their own super?

Self-employed sole traders and partners don't have to pay super guarantees for themselves, but they can choose to make personal super contributions. Our worked examples are before any super contributions.

How much does it cost to start a carpentry business?

Start-up costs depend on what you already own, and the main items are tools, a work vehicle, insurance and cash for materials until clients pay. A licence or registration fee may also apply, depending on your state or territory and the work. Our guide to starting a carpentry business explains each step.

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_{Written by upcover's editorial team. This article provides general information only and does not take into account your objectives, financial situation or needs. It is not financial, tax or legal advice; for advice on your tax position, speak with a registered tax agent. Revenue and take-home figures are illustrative worked examples, not earnings or profit forecasts. ATO benchmarks, tax rates and GST rules are as listed in September 2026 and may change. Insurance availability and cover are subject to underwriting and the terms, conditions, limits and exclusions of the relevant policy. Read the policy wording and its terms and conditions before deciding. upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}