How should a tradie disclose a call-out fee?

What the ACCC says

The ACCC says businesses must communicate clear and accurate prices before consumers book, order or buy, and must not mislead them about price. It says the total price must include taxes and all unavoidable or pre-selected extra fees, shown as the minimum total cost, meaning the lowest amount a customer could pay. If a business shows a price for only part of a service, the total must be at least as prominent.

On our reading, a call-out fee that every customer must pay to get your attendance belongs in the total price you show to homeowners. The ACCC does not give legal advice to businesses, so check your own position. Prices shown only to other businesses do not need to include GST.

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Fees that cannot be worked out yet

The ACCC says the total price does not need to include extra charges that cannot be quantified at the time the price is stated. Where you know the minimum, state it, and as soon as you can work out the full amount, tell the customer before they commit. Other surcharges or fees can be charged, but the ACCC says you must not mislead consumers about what they will be charged or why, and should show them prominently before the customer decides.

Sources[1]

Working out the fee

Fictional example for a GST-registered business: Suppose attendance takes 0.5 hours of travel and 0.5 hours of included diagnosis, at a labour cost recovery rate of $90 an hour, plus a $15 vehicle allowance. The fee is (1.0 × $90) + $15 = $105 excluding GST, so $115.50 including $10.50 GST. Use your own rate and decide whether the fee is credited against any work that follows.

Sources[1][2]

Disclosure checklist

Our recommended checklist. Business Queensland also says a quote should show the GST component, list what is not included, set payment terms and be revised if details change.

[ ] Call-out fee shown as a GST-inclusive dollar amount before booking
[ ] What the fee covers: travel, attendance, [number] minutes of diagnosis
[ ] Whether the fee is credited against any work that goes ahead
[ ] After-hours or weekend loading, with the amount or rate, shown before booking
[ ] Cancellation or missed-appointment terms, shown before booking
[ ] Any extra work needs the customer's approval, with a revised quote if the scope changes
[ ] Payment terms and accepted payment methods
[ ] Same wording used on the website, phone script, booking message and quote

Sources[1][2]

Common questions

How much should I charge for a call out fee?

Work it from your travel time, included diagnosis time, vehicle costs and required recovery rate. Decide what the fee covers and whether it is credited against further work, then show the GST-inclusive consumer price before booking.[1][2]

When to charge a call out fee?

That is a business decision, but the ACCC says prices and fees must be communicated clearly before a consumer books. Decide in advance when the fee applies, such as attending and diagnosing, and whether it is credited against work, then state that on your booking page and quote.[1][2]