Contractor Calculator Australia — ABN & Sole Trader Income Estimator
Estimate contractor income after tax, GST, and super.
Convert day rates or hourly rates into an annual income estimate, then layer in expenses, tax, GST pressure and self-funded super.
Contractor Inputs
Rate type
Use the headline daily rate before expenses and tax.
Insurance, accounting, software, equipment, travel and similar business costs.
Contractor Income Estimate
Net after tax and super
$115,430
Gross business income after expenses: $206,500
$502 / day effective rate
- Annual billings
- $218,500
- Net after tax
- $140,210
- Tax + Medicare
- $66,291
- Suggested super
- $24,780
- Effective daily rate
- $502
- Effective hourly rate
- $66
- Projected income is above the $75,000 threshold — you may need to register for GST and factor BAS reporting into your cash flow.
Tax and take-home breakdown
- Business income after expenses
- $206,500
- Income tax
- -$59,063
- Medicare levy
- -$4,130
- Suggested super contribution
- -$24,780
- Effective daily rate after tax + super
- $502
- Effective hourly rate after tax + super
- $66
Compare to a PAYG employee
See how your net income stacks up on a regular salary.
Related tools
How the Contractor Calculator Works
Why Use a Contractor Calculator?
A $750/day contract rate sounds like a huge salary — but after accounting for non-billable weeks, business expenses, self-funded super, and the GST threshold, the take-home reality is often very different from the headline number. This contractor calculator converts your contract rate into an honest annual picture so you can compare contract vs salary offers or plan your cash flow as a sole trader. It works as both an ABN calculator and a freelance tax calculator for Australian contractors.
How It Works
- Select hourly or daily rate: Pick the contract rate basis that matches your engagement.
- Enter billable time: Set the days or hours per week and the number of working weeks across the year. This is where most overestimates happen — be realistic.
- Subtract annual expenses: Include recurring costs like insurance, software, accounting fees, and coworking space.
- Review the full picture: See your gross business income, estimated tax, GST registration threshold, and suggested self-funded super contribution.
Key Contractor Concepts
Billable Utilisation
The percentage of the year you actually bill clients. Leave, gaps between contracts, and admin time reduce this. Most contractors bill 42–46 weeks per year.
GST Threshold ($75,000)
Once annual turnover exceeds $75,000 you must register for GST, charge 10% on invoices, lodge BAS quarterly, and manage GST credits on expenses.
Self-Funded Super
Unlike employees, contractors don't receive employer super. The tool suggests 12% of gross income so you can compare like-for-like against salaried packages.
Expense Deductions
Business expenses reduce your taxable income directly. Common items include insurance, accounting fees, equipment, software subscriptions, and travel.
Example: $750/day, 46 billable weeks
A contractor working 5 days per week for 46 weeks with $8,000 in annual business expenses:
Income breakdown
- Gross billings (230 days):$172,500
- Business expenses:-$8,000
- Taxable income:$164,500
Tax and super
- Estimated tax (inc. Medicare & MLS):$47,961
- Suggested super (12%):$19,740
- Take-home (after tax):$116,540
GST registration required (turnover exceeds $75,000). After setting aside super, the equivalent salary package would need to be roughly $185,000+ to match.
Example only. Enter your own figures in the calculator above.
Comparing contract income with salary offers
Billable time is the biggest lever
Contractors rarely bill every week of the year. Leave, downtime between contracts and non-billable admin work all reduce the annualised value of a headline day rate.
Expenses and super change the real comparison
Salaried roles often include paid leave, employer super and fewer direct expenses. Contractors need a higher headline rate to replicate the same after-tax and after-super position.
Simplified estimate only
This is not an accounting model. It does not include GST credits, company tax, trust structures, payroll tax, workers compensation or professional-indemnity complexity.
Frequently Asked Questions
How is gross contractor income calculated here?
The calculator annualises your daily or hourly contract rate, multiplies it by billable time, and then subtracts the annual expenses you enter. That result is treated as the business income flowing into the tax estimate.
Does this include GST?
It does not add GST on top of your contract rate. Instead, it flags when projected income is above the $75,000 threshold so you can account for GST registration and BAS obligations separately.
Why does the calculator suggest super?
Employees receive employer super contributions automatically, but many contractors need to self-fund that themselves. The tool shows a suggested contribution at 12% of gross income so you can compare contract income with salaried packages more realistically.
Are the tax figures the same as for an employee?
The estimate reuses the site's PAYG-style personal tax engine for a quick benchmark. It does not model company structures, PSI rules, GST credits or business-specific deductions beyond the annual expense figure you enter.
What is a realistic billable utilisation rate?
Most independent contractors bill 42–46 weeks per year after accounting for annual leave, sick days, public holidays, and gaps between contracts. Assuming 52 billable weeks will significantly overstate your annual income. Start with 44 weeks as a reasonable baseline and adjust from there.
Should I set up a company or stay sole trader?
This calculator estimates income as a sole trader (ABN holder). Company structures can offer tax advantages at higher income levels but come with additional compliance costs (ASIC fees, company tax returns, director obligations). Consult an accountant to compare the options for your specific situation.
How do I convert a contract day rate to an equivalent salary?
Multiply your daily rate by the number of billable days per year (e.g., $750/day x 230 days = $172,500 gross). Then subtract business expenses, self-funded super (12%), and account for the fact that salaried roles include paid leave and employer super on top. This contract to salary converter does that comparison automatically.
How much tax does a sole trader pay in Australia?
Sole traders pay the same individual income tax rates as employees — the 2025-26 progressive PAYG brackets apply. The difference is that no employer withholds tax from each pay, so sole traders must set aside tax themselves and pay through BAS or tax return. Use this sole trader tax calculator to estimate your liability based on your contract income minus expenses.
More tools
Go deeper with your numbers
Use calculators for pay, tax, super, and comparisons.
Compare Job Offers
Put two or more offers head-to-head — after tax, super, and HECS. Don't get fooled by a higher gross.
Tax Return Calculator
Estimate your refund or tax owing from annual totals and PAYG withheld.
Budget Planner
Map your take-home pay against living costs and savings goals.
Salary Sacrifice
See how pre-tax super contributions reduce your income tax.
Invest vs Offset
Compare investing in shares against your mortgage offset. Factors in CGT, dividends, and franking credits.
Investment Calculator
Project how a lump sum and regular contributions grow with compound interest over time.
HECS Calculator
Estimate compulsory HELP repayments, payoff time, and voluntary repayment impact.