How to Write a Quote for a Job in Australia (Step by Step)

Short answer: To write a quote, define the scope (what’s included and what isn’t), then price it. Materials are quantity plus waste at cost plus your markup. Labour is hours times a charge-out rate that covers your pay and overheads. Add GST if you’re registered and show the GST-inclusive total. Then set the terms: deposit, payment, how variations are priced and approved, and an expiry date. Once the customer accepts, business.gov.au says your quote becomes a legally binding contract.

This guide follows business.gov.au’s advice on how to prepare quotes and the ACCC’s rules on pricing, and it uses GST rules for the 2026–27 income year. For a layout to copy, use the quote template. For the invoice that follows, see what is an invoice.

How do you write a quote, step by step?

Scope first, price second, terms last.

1. See the job and write the scope. Measure, take photos, and note access and anything that could change the price.
2. List the materials with quantities, a waste allowance and current supplier prices.
3. Estimate the labour task by task, in hours.
4. Price it with your charge-out rate and your materials markup.
5. Add GST if you’re registered.
6. Write the exclusions and the variations clause.
7. Set the terms: deposit, payment due date, start and finish dates, and an expiry date.
8. Send it, and follow up before it expires.

How do you price labour on a quote?

Multiply the hours each task will take by a charge-out rate that covers your own pay, your overheads and the hours you can’t bill. business.gov.au’s guide to pricing strategy says to include materials, labour, overheads and taxes, including GST, when you work out your costs.

Working out a charge-out rate:

Item	Amount
What you want to earn before tax	$78,000
Yearly overheads (van, fuel, insurance, tools, phone, software, accountant)	$23,000
Total to recover	$101,000
Billable hours (46 weeks × 25 hours, after quoting, travel and admin)	1,150
Charge-out rate	about $88 an hour

Billable hours catch most people out: divide by 40 hours a week for 52 weeks and the rate comes out far too low. The $78,000 is before income tax, so see sole trader tax rates for what to set aside. Estimate hours per task, not per job: “remove old boards, 6 hours” is easier to check than “2 days”.

How do you price materials on a quote?

Measure the quantity, add a waste allowance, price it at what you’ll actually pay, and add a markup. Use current supplier prices, because last month’s price list is the fastest way to lose money on a fixed quote. Include the easily forgotten costs: delivery, tip fees, fixings and consumables. If your supplier only holds prices for a short time, don’t let your quote run longer than theirs. The markup pays for ordering, collecting and the risk of breakages. There’s no standard rate, so pick one and apply it consistently.

What is the difference between markup and margin?

Markup is profit as a percentage of cost; margin is profit as a percentage of the price. business.gov.au describes cost-plus pricing as working out your total cost and then adding a markup or margin.

Cost	Markup	Price (excl. GST)	Profit	Margin
$1,000	10%	$1,100	$100	9.1%
$1,000	20%	$1,200	$200	16.7%
$1,000	25%	$1,250	$250	20.0%
$1,000	50%	$1,500	$500	33.3%

To hit a target margin, divide the cost by (1 minus the margin). For a 20% margin on $1,000 of cost, that’s $1,000 ÷ 0.8 = $1,250. Adding 20% to cost gives only a 16.7% margin.

What does a priced quote look like?

Here’s a GST-registered carpenter’s costing for replacing 20 m² of deck boards for a homeowner, using the $88 charge-out rate and a 15% materials markup.

Line	Your cost	On the quote (excl. GST)
Merbau decking, 22 m² (20 m² + 10% waste) at $95/m²	$2,090.00	$2,403.50
Screws, oil and sundries	$260.00	$299.00
Remove old boards and inspect joists, 6 h		$528.00
Lay new boards, 14 h		$1,232.00
Sand and oil, 6 h		$528.00
Tip fees (at cost)	$180.00	$180.00
Subtotal		$5,170.50
GST (10%)		$517.05
Total including GST		$5,687.55

GST is 10% of $5,170.50, which is $517.05. How to calculate GST has more worked examples. The customer is a homeowner, so the ACCC’s price display rules apply. The total including GST must be shown as a single figure, and the GST-exclusive amounts can’t be more prominent than it.

The scope adds: “Excludes replacement of joists or bearers. If rot is found when the old boards are lifted, it will be priced as a variation and approved by you before work continues.” That sentence turns a likely argument into a routine phone call.

How should a quote handle variations and unknowns?

Name the unknowns, exclude them, and say how extra work will be priced and approved. A fixed price only works for a defined scope.

• Exclusions. List what’s not included, especially the things you can’t see until the job starts: rot, asbestos, rock, hidden pipes or wiring.
• Variations clause. Extra work is described and priced in writing, and the customer approves it before you start. business.gov.au suggests recording any variations already discussed on the quote itself.
• An estimate instead. If you can’t fix a price, call it an estimate and say what could change it.

How long should a quote be valid, and what terms should it include?

Make it valid for as long as you can hold your prices: often 30 days, and less when material prices are moving. Write the actual date (“Valid until 5 November 2026”). business.gov.au lists an expiry date as part of a written quote but leaves the length to you. Then set out the deposit, when the balance is due, how to pay and any late fee. Some states cap deposits or require a written contract for home building work, so check your state’s regulator.

If you put the same printed terms on every quote, they’re likely to be a standard form contract. Since 9 November 2023, proposing, using or relying on an unfair contract term in a standard form contract with a consumer or small business is illegal, with penalties. Unfair terms include ones that let only you change the price or terms, end the contract, or avoid your responsibilities. “Prices may change at any time at our discretion” is the kind of clause to drop.

What is the difference between a quote, an estimate and a tender?

A quote is a fixed price for a defined scope; an estimate is your best guess at the cost; a tender is a formal bid against other businesses, usually for a bigger job. “Quote” and “quotation” mean the same thing.

Document	What it is	Can the price change?
Estimate	An informed approximation, with the things that could change it	Yes, within what you’ve explained
Quote (quotation)	A firm price for the scope described, valid until a set date	Not for the scope accepted; only through agreed variations
Tender	A formal bid, often on the buyer’s forms and terms, competing with other bidders	Fixed on the terms of the tender
Request for quote (RFQ)	A buyer asking you to price a defined scope	You set the price in your quote
Request for proposal (RFP)	A buyer describing a problem and asking how you’d solve it, and for how much	You propose the scope and the price
Invoice	A request for payment after the work is done	It should follow the accepted quote and approved variations

The label alone doesn’t decide it: what counts is what the document says and what the customer agrees to. The ACCC says any price information a business gives, including in quotations, must be accurate, truthful and based on reasonable grounds. A deliberately low estimate to win the job can be misleading.

When is a quote legally binding?

When the customer accepts it. business.gov.au says an accepted quote becomes a legally binding contract, so the price, scope and terms bind you as well as the customer. Until then it’s an offer, and the expiry date limits how long the customer can accept it.

Three things follow:

• You can’t charge more for the accepted scope. Extra money needs an agreed variation.
• Consumer guarantees apply anyway. When you supply services to consumers, the ACCC’s consumer guarantees require acceptable care and skill, results fit for the agreed purpose and completion within a reasonable time. A quote can’t exclude them.
• Get acceptance in writing. A signature or a reply email is far easier to rely on than a phone call.

…and where does Keel fit?

Keel: Invoice Maker & Receipts, by Ilura Technology OÜ, is an iPhone app for people who work for themselves. You write the estimate on your phone, and when the customer accepts it, it becomes the invoice in one tap, so the price you quoted is the price you bill. Each job keeps its quote, receipts, expenses and invoice together, which makes it easy to compare what you priced with what the job cost. A “who owes you” list drafts reminders that you review and send yourself; nothing goes out automatically. Records stay on the iPhone, with no account, no bank connection and no cloud sync, and the App Store privacy label reads “Data Not Collected”.

Keel doesn’t work out your charge-out rate or check your terms, and it doesn’t lodge your BAS or connect to the ATO. It’s free with no invoice limit, and free invoices carry a small “Made with Keel” footer. Keel Lifetime is a one-time purchase ($249.99 USD; the App Store shows your local price) that adds custom branding, a signature, premium templates and accountant-ready exports. Keel on the App Store. More Australian guides are on the Australia hub.

Frequently asked questions

How do I write a simple quote? Start with your business name, ABN and contact details, then the customer’s details and a plain description of the job, including what’s excluded. List materials and labour with prices, add GST if you’re registered, and finish with payment terms, dates, an expiry date and a space to accept. The quote template has a layout to copy.

Is a quote legally binding in Australia? Yes, once the customer accepts it. business.gov.au says an accepted quote becomes a legally binding contract, so you have to do the work described at the price quoted. Before acceptance it’s an offer that lapses on its expiry date. Extra charges need a variation the customer agrees to.

What is the difference between a quote and an estimate? A quote is a firm price for a defined scope, and it binds you once accepted. An estimate is an informed guess that can change, so say what could change it and by roughly how much. Either way, the ACCC requires price information to be accurate and based on reasonable grounds.

Should a quote include GST? Only if you’re registered for GST. If you are, and you’re quoting a consumer, show the total including GST as a single figure. Any GST-exclusive amounts can’t be more prominent than that total. If you’re not registered, don’t add GST at all.

How much should I mark up materials? There’s no standard figure; it depends on your trade, your customers and how much handling the materials involve. Choose a markup, apply it consistently, and remember that markup and margin differ: a 25% markup on cost is a 20% margin on the price.

Can I change a quote after the customer accepts it? Not on your own. The accepted quote is the contract, so any change in scope or price needs the customer’s agreement, ideally in writing before you do the extra work. That’s why a clear exclusions list and a variations clause matter.

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This article is general information, not legal or tax advice. Consult a qualified Australian professional.