Contractor Day Rate Calculator
Compare a contract day rate with a permanent salary, allowing for unpaid leave, super and business costs.
Printed from ClearCalc (clearcalc.com.au/contractor-calculator/). Estimates only, not financial advice.
Turning a day rate into a salary
A quick rule of thumb is to divide a salary by 200 to 220 to find a fair day rate, not by 260 working days. That's because contractors aren't paid for annual leave, public holidays or sick days, and often have gaps between contracts.
- Working days: 52 weeks minus 4 weeks of leave and about 2 weeks of public holidays leaves 46 weeks, or 230 days. Allow for gaps and illness too.
- Super: on an ABN you're not paid super, so set aside your own. Through an agency, super is usually paid on top of your rate.
- Costs: professional indemnity and public liability insurance, accounting, equipment and training.
Tax for contractors
Sole traders pay the same income tax rates as employees, but no tax is withheld. You'll usually need to pay PAYG instalments each quarter and register for GST once your turnover reaches $75,000. Charge GST on top of your rate if you're registered.
Personal services income
If most of your income comes from your own skills and you work mostly for one client, the ATO's personal services income rules may limit the deductions you can claim. Talk to an accountant before setting up a company or trust.
Frequently asked questions
What day rate equals a $150,000 salary?
About $743 a day on an ABN, if you work 230 days a year and have $3,000 of costs, once you set aside 12% super. Through an agency that pays super on top, about $665.
Do contractors get super?
Contractors paid mainly for their labour can be entitled to super, even on an ABN. Otherwise you need to make your own contributions, which you may be able to claim as a tax deduction.
Should I charge GST?
Only if you're registered for GST. You must register once your turnover reaches $75,000 a year, and then add 10% to your invoices.
Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.