Contractor pay calculator
Work out what an hourly or daily rate really pays as a sole trader on an ABN.
| Billings (excluding GST) | $165,600 |
| GST you collect and pass to the ATO | $16,560 |
| Business expenses | −$3,000 |
| Super you contribute (tax deductible) | −$19,512 |
| Taxable income | $143,088 |
| Income tax and Medicare | −$36,874 |
| Take-home pay | $106,214 |
For a sole trader. Equivalent salary: about $143,088 plus super. Set aside money for tax through the year, as nobody withholds it for you (the ATO may put you on PAYG instalments). Companies and trusts are taxed differently.
Good to know
As a contractor you invoice for your work, and if you’re registered for GST you add 10% and pay it to the ATO. That GST isn’t your income.
Nobody pays super or withholds tax for you, so set money aside. Personal super contributions can usually be claimed as a tax deduction, up to the concessional cap.
To compare a contract rate with a salary, remember you don’t get paid leave, public holidays or sick days, so count only the weeks you’ll actually work.