The Real Maths on Taking On an Apprentice

Taking on an apprentice is one of the best long-term moves a plumbing business can make. A third or fourth-year apprentice generating $50–60/hr in billings at an award wage of $22–25/hr is excellent economics. A first-year apprentice generating $8–12/hr in useful work at a total cost of $40/hr is a different proposition. Knowing the difference — and planning for it — is what separates businesses that grow successfully through apprentices from those that burn out on them.

Year 1: the full cost breakdown

These figures are approximate for a first-year apprentice in most Australian states. The order of magnitude is right:

• Award wages: $15,000–17,000 (first-year plumbing apprentice rate)
• Superannuation: ~$1,700
• WorkCover premium: $1,200–2,000 depending on state and claims history
• Tools, PPE, uniform, boots: $2,000–3,000 in year one
• TAFE fees (employer-paid portion): $1,000–2,000
• Your supervision time: approximately 20% of your working day is occupied managing a first-year. At a $100/hr opportunity cost, that's around $16,000/yr.

Total year-one cost: $37,000–42,000. What does a first-year generate? They can do prep work, assist on two-person jobs, handle cleanup, and run materials. Realistically, $8,000–14,000 in attributable billable contribution. Year one, you're $25,000–35,000 in the hole.

When the economics turn: year two through four

By year two, a good apprentice can run basic jobs solo with occasional check-ins — tap replacements, routine maintenance, drain clears. They generate $20,000–28,000. Year two is roughly break-even. Year three is where the business case clicks: $50,000+ in billable contribution at $22–24/hr in wages. By year four, a good apprentice is running half their own jobs and generating significantly more than they cost.

The volume question you have to answer before you hire

Before taking on an apprentice, the honest question is: do you have consistent work to keep both of you busy, five days a week, for four years? If you're currently scrambling to fill your own schedule, an apprentice adds cost without adding much capacity. If you're turning work away or working 55-hour weeks, an apprentice solves a real problem. A rough guide: if annual revenue is above $300,000 with consistent residential service work, the volume is probably there. Below that, it depends on the work mix.

Government incentives under the Australian Apprenticeships Incentives Program

Australian apprenticeship incentives are available through the Australian Apprenticeships Incentives Program. Amounts and eligibility change regularly — check with your state's training authority or an apprenticeship network provider. The incentives don't change the fundamental economics, but they soften year one meaningfully and are worth claiming.