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BizTools for Australian Service Agencies

Service agencies live and die on three numbers: utilisation, charge-out rate, and gross margin per project. Everything on this page is built for AU service agencies — calculators that pressure-test those three numbers, plus the software and structure decisions that come with the growth stages.

On this page

  • Calculators for charge-out rates, employee cost, utilisation.
  • Honest accounting software comparisons (Xero vs MYOB).
  • Plain-English guides for staffing, BAS, structure, payroll.
  • Affiliate-disclosed partner recommendations.

FAQ

Common questions

What's the realistic team-cost ratio I should target?
Most healthy AU service agencies run team costs (salaries + on-costs + super) at 50-60% of revenue, with gross margin per project at 50-65% after direct delivery cost. Use the Employee Cost Calculator to build up the salary + super + leave + workers comp number, then divide expected billable hours into it to get the true per-hour cost — that's what your charge-out rate has to clear with margin on top.
Xero or MYOB for an AU agency?
Xero is the default — it's what almost every AU accountant uses, has the biggest integration ecosystem (Stripe, HubSpot, time trackers), and scales cleanly. MYOB usually only wins for agencies where payroll is the dominant workflow (e.g. agencies with 15+ staff on AU awards). See our Xero vs MYOB head-to-head for the full picture.
When should we move from sole trader to Pty Ltd as an agency?
Usually sooner than you think. The moment you hire your first employee, sign a customer contract with material liability exposure (e.g. anything advisory), or your founder profit consistently exceeds ~$120k, the Pty Ltd math starts winning. Below that the admin overhead usually wipes out the tax saving.
What utilisation rate should our team hit?
Industry rule of thumb for AU service agencies: senior delivery 60-70%, mid 70-80%, junior 75-85%. Anyone in 'leadership' (founders, account leads) is usually 30-50%. Use the Billable Utilisation Planner to work backwards from your target margin to see what utilisation rate that actually implies per role.

Disclaimer

A note on the recommendations

Important note

BizTools.au is designed to make business numbers easier to check, but calculator outputs still need judgment and real-world context.

  • Calculator results are general estimates only and depend on the figures entered.
  • Examples and summaries are provided for general information, not legal, tax, accounting, payroll, or financial advice.
  • Before relying on a result for a real decision, check your assumptions and get qualified advice where needed.
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