Welcome to Yahoo’s weekly column where lawyers Alison and Jillian Barrett from Maurice Blackburn tackle problems everyday Aussies face — whether it be consumer, property, money matters, relationships or work.
Question
I live in an apartment in Sydney and we had a leak from an unknown source. A plumber was called and he realised there was a small hole in the external wall that was slowly letting in water — most likely created by a previous tradie who forgot to fill it in. The plumber saw the hole straight away and didn’t even have to do any dye tests to ascertain where the leak was, he just filled the hole with silicone and left after 15 minutes.
However, when we received the bill, I was shocked. The company had charged $800 for less than an hour’s work. They applied a senior’s discount and reductions for booking online and using a magnet code, but it still came to over $500. It wasn’t an emergency callout and he came on a weekday, so I was shocked at this high cost, especially considering he didn’t stay long or do any skilled work. It was such a small job that I honestly wondered if he’d do it as a freebie. I was so wrong.
Is there a limit on how much trades can charge per hour? I’m glad I got the discounts applied, but it still feels awfully high. Is $800 a reasonable cost for less than an hour of work?
Answer
In Australia, there is no fixed hourly rate or legal cap on what plumbers or other trades can charge for their services.
Trades are generally free to set their own prices based on their business model, overheads, expertise, and market demand.
However, that does not mean anything goes.
What does Australian consumer law say?
The key protections come from the Australian Consumer Law, which applies nationally.
Under the Australian Consumer Law, when you pay for services such as plumbing, you automatically receive certain consumer guarantees.
You get protection where:
no price was agreed upfront (or a clear pricing structure), or
the price charged is not “reasonable” for the service provided.
What is a ‘reasonable’ price?
This is where things often become frustrating and disputes arise.
“Reasonable” does not mean cheap, and it does not depend solely on how long the tradie was at your home.
Factors that can be taken into account include:
Callout fees, including whether it was urgent or after hours
Minimum labour charges (many plumbers charge a minimum one hour)
The actual time spent doing the task, including arranging any materials needed
Experience and licensing level
Business overheads (vehicles, insurance, tools, compliance costs)
Whether the job involved diagnosis or specialist knowledge
For less than an hour’s work, no emergency, no diagnostic testing, and a simple silicone seal, an $800 charge, even discounted, raises real questions about reasonableness.
Do you have a matter you’d like us to weigh in on? Contact newsroomau@yahoonews.com and we might feature it next.
Jillian and Alison Barrett are Principal Lawyers at Australia’s leading plaintiff law firm, Maurice Blackburn.
(William Gordon Photography)
This is even more concerning if the plumber gave you no clear quote or estimate, you were not told about a minimum charge and the pricing structure was not explained before doing the work.
Is it misleading or unfair to charge that much?
Potentially, but it depends on the circumstances.
Under the Australian Consumer Law, businesses must not engage in misleading or deceptive conduct, and they must not behave in a way that is unconscionable or unfair, particularly where a consumer is vulnerable.
If a plumber implies a job will be complex or time-consuming and then charges an excessive fixed fee for a very simple task, that may justify further scrutiny.
Likewise, charging high fees without clearly disclosing callout charges, minimum labour times, or pricing models may be problematic.
Australian regulators have taken action in the past against plumbing and other trades businesses that engaged in systemic overcharging, particularly when elderly or vulnerable consumers were targeted.
What can you do if you feel overcharged?
If you believe the cost was unreasonable, you can:
In writing, ask for an itemised invoice showing labour, callout fees, and materials
Compare the charge with typical market rates for similar work
Dispute the charge and ask for a refund
Lodge a complaint with your state or territory consumer protection agency
In NSW, disputes between consumers and tradespeople relating to the Australian Consumer Law is enforced by NSW Fair Trading.
It can help assess whether the charge may be unreasonable, assist with dispute resolution and look at a formal claim against the plumber if you decide to lodge one.
Should you be liable for these repairs at all?
This is critical to consider, as you may not even be liable to pay for these repairs at all.
In NSW, external walls of an apartment building are almost always common property under the Strata Schemes Management Act 2015.
If the leak was coming through an external wall, and/or a hole created by a previous contractor, then responsibility for investigation and repair usually lies with the owner’s corporation, not the individual lot owner.
That means the strata manager should have engaged the plumber and the strata scheme should ordinarily have borne the cost.
If you arranged the plumber yourself, you may still be able to seek reimbursement, particularly if the repair prevented further damage. Reach out to the owner’s corporation representatives immediately.
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