Subby VS Employment

Being a subby versus being an employee is an important consideration for tradies who may be looking to take the next step in their career. 🛠️ Being employed certainly comes with its upsides. In theory, it’s a safer position for those who are more risk-averse. You generally have a fixed income and can be sure of what your baseline income is going to be week to week. 💰 This is a really important part of setting goals and plans for your financial future. One of the major traps of being in a trade is that you can have variable pay from week to week, which can land you in financial strife if you’re not managing your expenses the right way.

So, in a lot of circumstances, when you’re employed, you have certainty over income, which is a big drawcard. You get sick pay, annual leave, carer’s leave, and all the benefits. You may even get a company vehicle if you’re lucky, tool allowances, and bonuses — the list can go on for the right person working in the right company. 🚗🔧

In essence, being employed covers your downside. Your position is, to some degree, safer (although that could be argued), but your upside is generally capped, meaning the amount of money you can earn usually reaches a ceiling. That’s why some guys and girls feel as though making the shift to becoming a subby is a better move for them. They believe they can earn more money and gain greater flexibility over how their day or week looks — although this can be a trap too. ⚠️

Let’s summarise the upside of being an employee

✅ Safer
✅ Downside covered
✅ Predictable income
✅ Annual leave, sick leave, and more
✅ Company incentives and bonuses
✅ Paid upskilling

Downside of being an employee

❌ Capped earning potential
❌ No control over your time or how week to week or day to day looks
❌ Always answering to a boss or employer

Now let’s say you want to make the move to becoming a subby, and let’s just imagine that you’re going to be a sole trader.

This is where a lot of guys go wrong, in our opinion. Being a subby may seem like an attractive way to earn more money, but it comes with considerable risk you didn’t once have. You need to manage insurances, tax, administration, sales, marketing, and most of all, winning work and delivering that work. 💼📑 You need to brush up on contract management — and the list goes on. You’re basically taking a big step towards having your own business, and generally speaking, you are.

Subcontractors should be working to an agreed scope of works that you need to deliver on. You may be responsible for sourcing your own materials, or it may just be labour-only. In some cases, your main contractor is responsible for super, and in others, they’re not — you’ll need to consult your accountant on that. 🧾

But being a subby means if you’re good at your craft, you can command a higher rate because you are taking on more responsibility and risk. Our advice: if you have no intention of ever running your own business or being self-employed, it’s better to stay as an employed tradie and maximise your skill set and income under an employer. You can still register as a sole trader to do weekend work or your own side projects, but staying in a safe position with predictable income can be more beneficial overall.

If you’re a business person or ambitious at heart, being a sole trader is a great way to dip your toes in the water and start understanding all the facets of being self-employed. From winning work to delivering the work to managing the back end of your business, you’ll be learning fast. 🚀 But here’s the key point: just because you are a great chippy or sparky does not mean you automatically know how to run a business — even a small one. Make sure you get the relevant training and upskilling before you take the plunge, so you don’t end up in the graveyard of guys who thought becoming a subby was the better idea, only to get crushed by the admin and business demands. 💥

Here are the pros of being a subby

✅ Potential to earn a higher rate
✅ Greater control over your time and workload
✅ Flexibility to choose projects and clients
✅ Pathway to becoming a business owner

Here are the downsides

❌ You carry the risk: no work = no pay
❌ Managing insurances, tax, and admin
❌ Responsible for your own super, leave, and entitlements
❌ Chasing payments and managing contracts
❌ Pressure to always keep the work pipeline full

In summary, both paths have their upsides and downsides. Neither is “better” — it all depends on your personality, your ambitions, and your risk tolerance. 💭 Are you someone who thrives in the structure of employment and maximising your role within a team? Or are you someone with a business mindset, keen to test the waters of running your own show?

Whichever path you choose, make sure you go in eyes wide open. Know the risks, know the rewards, and make sure you’re building a future that fits what you want out of life.

Need advice on how to navigate the next step in your trade career? The Intrade crew is always here to help you figure it out.