// EMPLOYMENT
Contractor vs Employee
Calculator
Find the daily rate you need as a contractor to match your permanent salary — or see how your existing rate compares. Accounts for super, leave, sick days, insurance, and expenses.
// CONTRACTOR_DETAILS
Your rate and working arrangements
Daily rate (ex GST)$850/day
Days worked per week5 days
Unpaid gap / sick days per year10 days
Business expenses p.a.$5,000
PI/PL insurance p.a.$2,500
Self-funded super contribution11.5%
// EMPLOYEE_DETAILS
Permanent role for comparison
Annual base salary$130,000
Employer super rate11.5%
Annual leave entitlement4 weeks
Paid sick leave days10 days
State (public holidays)
Total employer cost: $144,950 (salary + 11.5% super)
Contracting wins on take-home pay
+$16,384/year
Based on 218 billable days · $185,300 gross contract income · Break-even daily rate: $720/day
CONTRACTOR
$111,068
Take-home · $106.25/hr effective
Billable days218 days
Gross income$185,300
Self-funded super−$21,310
Business expenses−$5,000
Insurance−$2,500
Taxable income$156,491
Income tax−$42,293
Medicare levy−$3,130
Take-home cash$111,068
Net super to fund+$18,113
EMPLOYEE
$94,683
Take-home · $65.52/hr effective
Base salary$130,000
Income tax−$32,717
Medicare levy−$2,600
Take-home cash$94,683
Employer super+$14,950
Annual leave (4 wks)+$10,000
Paid sick leave (10 days)+$5,000
Public holidays (12 days)+$6,000
Total hidden benefits$35,950
Break-even analysis: At your current setup (218 billable days with 10 unpaid gap days), you need a daily rate of at least $720/day to match the take-home pay of the $130,000 permanent role. Your current rate of $850/day is $130/day above the threshold.
Remember: contractors also miss out on $35,950 in annual leave, sick leave, public holidays, and employer super that employees receive automatically.
Remember: contractors also miss out on $35,950 in annual leave, sick leave, public holidays, and employer super that employees receive automatically.
// FULL_COMPARISON_TABLE
Complete annual income comparison
| Item | Contractor | Employee | Difference |
|---|---|---|---|
| Gross income / salary | $185,300 | $130,000 | +$55,300 |
| Income tax | $42,293 | $32,717 | −$9,576 |
| Medicare levy | $3,130 | $2,600 | −$530 |
| Business expenses | $5,000 | – | −$5,000 |
| PI/PL insurance | $2,500 | – | −$2,500 |
| Take-home cash | $111,068 | $94,683 | +$16,384 |
| Super (net to fund) | $18,113 | $14,950 | +$3,163 |
| Paid leave value | – | $21,000 | −$21,000 |
| Total incl. super + leave | $129,181 | $130,633 | −$1,453 |
General information only. Contractor income assumes sole trader or Pty Ltd structure (Pty Ltd company tax is not modelled). GST must be remitted to the ATO quarterly if registered — it is not income. This model does not include income protection insurance, workers compensation, or public liability claims. PSI (Personal Services Income) rules may apply and can affect deductibility of expenses. Seek advice from an accountant. Not financial or tax advice.