Contractor Pay Calculator
Convert your contract rate into real take-home pay — GST, super and FY2026–27 tax included.
GST-registration is required once turnover reaches $75,000/year. GST collected isn't your income — it's remitted to the ATO.
| Gross annual revenue | $0 |
| Business expenses | $0 |
| Taxable income | $0 |
| Income tax (FY2026–27) | $0 |
| Medicare levy (2%) | $0 |
| Net take-home pay | $0 |
Estimates only, based on standard FY2026–27 Australian resident tax rates, the 2% Medicare levy and the Low Income Tax Offset. This tool doesn't constitute financial or tax advice — for anything binding, check with a registered tax agent or the ATO.
Quick rate benchmark: Salary ↔ Casual ↔ ABN Contractor
A common rule of thumb: casual ≈ salary rate ×1.25 (covers leave entitlements), ABN contractor ≈ casual rate ×1.25 (covers super, insurance & business costs). Type into any box.
Frequently asked questions
How is contractor pay calculated in Australia?
Start with your contract rate (hourly, daily or annual), work out your gross annual revenue, then subtract GST you collect on behalf of the ATO (if registered), any superannuation you set aside, and your business expenses. What's left is your taxable income, which is taxed at the standard Australian resident tax rates plus the 2% Medicare levy.
Do contractors get paid superannuation?
Not automatically. Independent contractors invoicing under an ABN are generally responsible for their own super. However, if you're contracted mainly for your labour, the ATO may still classify you as an employee for super guarantee purposes — in which case the client owes you Super Guarantee contributions (12% from 1 July 2025). Check your specific arrangement or ask an accountant if unsure.
When do I need to register for GST?
You must register for GST once your business turnover reaches (or is expected to reach) $75,000 in a financial year. Once registered, you charge an extra 10% on your invoices and remit that amount to the ATO — it isn't part of your personal income.
How much more should I charge as a contractor compared to a salary?
A common rule of thumb is 40–70% above the equivalent salary hourly rate, to cover the leave, sick pay, public holidays and superannuation that a permanent employee receives but a contractor doesn't, plus your business costs (insurance, equipment, admin time).
Is this calculator accurate for my tax return?
It gives a close estimate using FY2026–27 resident tax rates, but it doesn't account for every personal circumstance (other income, HECS/HELP debt, private health insurance, deductions beyond what you enter, etc.). Use it for planning and rate-setting, not for lodging your tax return.