This charge-out rate calculator is for traffic control company owners and estimators. It works out what one controller-hour really costs your business, then the hourly rate you need to charge to cover that cost and make the margin you're aiming for.
Most traffic control companies that struggle with cash aren't short of work. They're charging a rate that looked fine against the wage but didn't cover super, workers' comp, payroll tax, unbillable hours and the office. This calculator puts all of that in one place.
How it's worked out
The calculator builds the rate in five steps:
- Paid-hour wage = base rate × (1 + casual loading or leave cost) × (1 + average penalties and allowances).
- On-costs = paid-hour wage × (super + workers' comp + payroll tax). Paid-hour cost = wage + on-costs.
- Labour per billable hour = paid-hour cost ÷ (1 − unbillable %). Some paid hours (travel, inductions, rain-offs, standby) can't be billed, so the hours you can bill have to carry them.
- Overhead per billable hour = annual overheads ÷ billable controller-hours per year. Break-even rate = labour + overhead.
- Charge-out rate = break-even ÷ (1 − target margin).
The result shows the charge-out rate, a bar splitting it into wage, on-costs, overheads and margin, the cost per paid hour, the break-even rate, and a table of rates and profit per hour at 5%, 10%, 15%, 20% and 25% margin. The unbillable share and the margin are each capped at 90% so the maths can't divide by zero.
Margin is not markup
The calculator works in margin: profit as a share of the price. Plenty of people price with markup: profit as a share of the cost. They're different numbers:
| Markup on cost | Margin on price |
|---|---|
| 10% | 9.1% |
| 15% | 13.0% |
| 20% | 16.7% |
| 25% | 20.0% |
| 33.3% | 25.0% |
A 25% markup is a 20% margin. If you think you're making 25% but you're adding 25% to cost, you're making 20%. Our guide to how to calculate your charge-out rate goes through this with more examples.
Charge-out rate calculator example from the award
A company employs casual controllers on the Building and Construction General On-site Award 2020 (MA000020). From 1 July 2026 the base rate for CW1(a) is $26.67 an hour, and the industry allowance of $67.15 a week adds $67.15 ÷ 38 = $1.77 an hour, so the all-purpose rate is about $28.44.
The owner enters:
- base rate $28.44, casual loading 25%
- average penalties and allowances 10% (their own figure from last year's payroll)
- super 12%, workers' comp 1.343% (the WorkCover Queensland average; their own policy rate will differ)
- payroll tax 0%, because they're under the threshold
- overheads $250,000 a year over 20,000 billable controller-hours
- 8% of paid hours unbillable, and a 15% target margin
| Step | Result |
|---|---|
| Paid-hour wage | $28.44 × 1.25 × 1.10 = $39.11 |
| On-costs (13.343%) | $5.22 |
| Cost per paid hour | $44.32 |
| Labour per billable hour (÷ 0.92) | $48.18 |
| Overhead per billable hour | $250,000 ÷ 20,000 = $12.50 |
| Break-even rate | $60.68 |
| Charge-out rate at 15% margin | $60.68 ÷ 0.85 = $71.38 |
That leaves about $10.71 profit per billable hour. If the business grows past the payroll tax threshold and pays 5.45% (the NSW general rate reported by secondary sources), the break-even rises to $62.99 and the rate for a 15% margin to $74.11. That's why payroll tax belongs in the rate before you cross the line, not after.
This is weekday straight time. Nights, weekends and public holidays carry higher penalty rates, so price them separately: change the penalties figure and rerun it for each band.
Where the inputs come from
| Input | Where to get it | Notes |
|---|---|---|
| Base rate | Your award or enterprise agreement | Many crews are on agreements well above the award |
| Casual loading | MA000020 cl. 12.4: 25% | For permanent staff, use leave and RDO costs instead |
| Penalties and allowances | Your own payroll history | Civil construction night shift is 115%; general building is 150% |
| Super | 12% Superannuation Guarantee | Payday Super since 1 July 2026: due within 7 business days of payday |
| Workers' comp | Your policy | QLD average $1.343 per $100 of wages; VIC average 1.8% |
| Payroll tax | Your state revenue office | e.g. NSW $1.2M threshold at 5.45%, QLD $1.3M at 4.75%; check the current figures |
| Overheads | Your accounts | Office, allocators, insurance, software, vehicles, equipment, training |
The penalty loadings matter more than most people think. The award has two shift streams: the civil construction stream pays night shift at 115% (130% for permanent nights, 150% if the night shifts don't run 5 in a row), while general building pays 150%. Pricing night work on the wrong stream means either underpaying the crew or undercharging the client. Our guide to paying traffic controllers correctly explains which applies.
Payroll tax thresholds and rates differ by state, and the Victorian, SA and NT thresholds conflict between the sources we checked, so confirm yours with the state revenue office.
What market rates tell you
Published industry guides put a certified traffic controller at roughly $50 to $85 per hour on weekday straight time. Those are marketing figures from individual companies, not a rate card. Your rate has to come from your own costs. If your break-even is close to what the market pays, the answer is usually in the inputs: unbillable hours, overheads spread over too few billable hours, or penalties not passed through.
Ways to improve the rate without raising the price
- Cut unbillable time. Every point off the unbillable share drops the labour cost per billable hour. Better rostering, fewer wasted travel hours and clear rain-off terms all help.
- Bill the minimums. Make sure short jobs are charged at your minimum and late cancellations are charged under your terms. Our guide to hourly versus fixed-price traffic control compares the options.
- Spread overheads. More billable hours on the same overheads lowers the overhead per hour.
- Price each band. Work out separate rates for nights, Saturdays, Sundays and public holidays.
For a fuller on-cost breakdown, including leave, RDOs, PPE and training, use the labour cost calculator. To turn the rate into a client quote, use the traffic control quote builder, and to see the client's side of the same sum, try the traffic control cost estimator.
When to get professional advice
The calculator's defaults are illustrations, not market rates. Before you set prices:
- check pay rates and loadings with the Fair Work Ombudsman, or your enterprise agreement
- confirm super obligations and Payday Super timing with the ATO
- check payroll tax with your state revenue office, including grouping rules
- get your workers' compensation rate from your insurer or state scheme
- talk to your accountant about overheads, cash flow and pricing
This is a planning tool, not financial advice.