Compare a trade job offer: pay, ABN terms and licence checks
A higher hourly quote does not necessarily mean more money in your pocket. This guide gives an offer-comparison worksheet and a licensing sequence for overseas tradespeople, without presenting unsourced national wage ranges as market rates.
In this guide
- Before a shift: check permission, licence and safety separately
- Example: do not confuse assessment with a licence
- Find the applicable minimum before comparing offers
- Illustrative comparison: employee versus contractor
- An ABN does not settle your employment status
- Start-work tax checklist
- Common questions
- Sources and scope
Before a shift: check permission, licence and safety separately
- Confirm your current visa work conditions in VEVO. A TFN or ABN does not grant work rights.
- Identify the exact trade activities, state/territory and whether you will work as an employee, supervisor or contractor. Different licence classes authorise different work.
- Check the relevant regulator using the government ABLIS licence finder. An overseas qualification or migration skills assessment is not automatically permission to practise.
- For construction work, check the state safety regulator’s general construction induction (White Card) requirements and approved training providers. Do not assume a self-paced online course is accepted.
- Ask about any additional high-risk work licence, site induction, required supervision and protective equipment before accepting duties.
Example: do not confuse assessment with a licence
Suppose an overseas electrician has a positive migration skills assessment and an offer to work in NSW. The next question is which NSW electrical licence or supervised pathway authorises the proposed tasks. A White Card only addresses construction safety induction; it does not authorise electrical work. Get the regulator’s written requirements before paying for bridging training or starting restricted work.
NSW’s SafeWork White Card page provides its current training and identity rules and recognises interstate construction induction cards. That does not mean every advertised online course is valid or that another state’s course can be taken from anywhere. Check the issuing regulator and your location before enrolling. Requirements and fees can change; we do not quote an unsupported national course price.
Find the applicable minimum before comparing offers
Ask the employer to identify the award or enterprise agreement, classification, employment type and ordinary hours. Use Fair Work’s Pay and Conditions Tool for the actual duties and pay period. Apprentices, juniors and particular classifications can have different rates.
From 1 July 2026 the adult National Minimum Wage for award/agreement-free employees is $26.44 per hour or $1,004.90 per week. It is not a universal trade rate. Applicable awards may require different rates, allowances, overtime and penalties. Save the award calculation alongside the written offer.
Illustrative comparison: employee versus contractor
These are invented offers for arithmetic, not current market rates. Offer A is a permanent employee at $40 per hour for 38 ordinary hours each week, with four weeks of paid annual leave. Offer B is a genuine contractor quoting $55 per billable hour excluding GST, expecting 38 billable hours for 46 weeks and $12,000 annual business expenses.
| Calculation | Amount |
|---|---|
| A: $40 × 38 × 52 gross annual wages | $79,040 |
| A: assumed 12% employer SG on all wages | $9,484.80 |
| A: wages plus employer super | $88,524.80 |
| B: $55 × 38 × 46 invoiced revenue | $96,140 |
| B: revenue less assumed $12,000 expenses | $84,140 before personal tax and any own super |
The contractor figure excludes unpaid leave, downtime beyond the assumption, bad debts, GST, income tax and any personal super contribution. It is not equivalent to employee net wages. This example assumes the contractor does not qualify for employer-paid super; real labour-only arrangements can qualify. Paid leave is already included in A’s 52 paid weeks, so do not add it again as extra cash.
An ABN does not settle your employment status
The true legal arrangement matters, not the invoice label. Genuine contractors run their own business, but some are still treated as employees for super because the contract is mainly for their personal labour and skills. Check the ATO contractor-super criteria before assuming nobody owes SG. Sham contracting can remove employee entitlements unlawfully; ask Fair Work if an employee job is being relabelled.
Permanent employees and casual employees have different leave and loading arrangements. Casuals generally do not receive paid annual or personal/carer’s leave, while some other leave entitlements still apply. Insurance and workers compensation treatment depend on the arrangement and jurisdiction; do not assume every contractor is covered or every employee receives every cost back.
Start-work tax checklist
Apply for a TFN using the correct ATO route. You can start authorised work while waiting: accurately declare that you have applied or enquired and use the ATO’s 28-day concession. Otherwise, subject to exceptions, no-TFN withholding is 47% for resident employees or 45% for foreign residents. It is not universally 45%, and a later refund is not guaranteed.
SG is 12% from July 2025; Payday Super applies from July 2026. For each offer record: gross rate, ordinary/penalty hours, plus/inclusive super wording, tools/vehicle costs, location, licence conditions, payment frequency and employment type. Use our payslip checklist to test the first payment.
Common questions
Are the hourly offers above typical trade wages?
No. They are labelled hypothetical inputs to show how to compare packages. Use the relevant award and current written offers for your trade, location and classification.
Does an ABN mean no employer super?
No. Certain contractors engaged mainly for their own labour can be entitled to super. Check the ATO criteria.
Can I start licensed work once I have a skills assessment?
Not automatically. Confirm the state or territory licence, supervision and safety requirements for the actual work first.
Sources and scope
Checked 30 September 2026. This is general information, not an individual tax, financial, employment or migration assessment. Follow the linked official instructions for your circumstances.
- Fair Work: award-based pay calculations
- Fair Work: minimum wage effective July 2026
- Fair Work: migrant worker support
- ATO: super for independent contractors
- Australian Business Licence and Information Service
- SafeWork NSW: construction induction cards
- Home Affairs: check current visa conditions
- ATO: TFN declaration
- Fair Work: Payday Super