Live calculator
Contractor vs Employee Calculator Australia
Compare employee salary with contractor day-rate income using broad Australian take-home pay estimates.
Current Australian tax year
No account needed
Plain-English assumptions
Contractor comparison
Compare employee salary with contractor day rate
Employee
Contractor
Take-home comparison
Compare the whole arrangement
A contractor rate must cover costs an employee rate may include
The hourly or day rate is only one part of the decision. Contractors may need to fund unpaid leave, downtime, insurance, equipment, accounting and their own super arrangements. Employment status also depends on the real working relationship, not just the label in a contract.
Employee package
Cash salary plus employer super and supported employment benefits.
Contract revenue
Rate multiplied by realistic billable hours or days.
Business costs
Insurance, equipment, administration and other genuine operating costs.
Unpaid time
Leave, public holidays, gaps and non-billable work that reduce revenue.
Worked example
Do not compare $60 an hour with $60 an hour
An employee may receive paid leave and employer super while a contractor may invoice only for hours worked and carry business costs. Build an annual comparison using realistic billable weeks, then subtract expenses and allow for time off before comparing take-home income.
Check before deciding
- Use realistic billable weeks, not all 52 weeks automatically.
- Add super, insurance, leave and administration costs.
- Check whether GST registration or invoicing obligations apply.
- Review the real relationship if the role may have been labelled incorrectly.
How to use this page
Contractor comparisons need GST, expenses, super, leave, insurance and tax timing. This page marks the pathway without overstating precision.
Enter employee salary, contractor day rate, billable days and expenses to compare broad annual take-home outcomes.
When this calculator is useful
checking contractor vs employee before you accept a job offer
turning a big annual number into weekly, fortnightly and monthly cashflow
spotting whether HELP debt, super wording or deductions may change the result
What this estimate includes
Australian financial-year tax brackets
Standard Medicare levy assumption
HELP repayment toggle
Employer super shown separately
Annual, monthly, fortnightly and weekly views
Plain-English assumptions and trace
Before you rely on the number
- Start with your gross pay before tax.
- Check whether the number includes employer super.
- Switch on HELP only if compulsory study debt repayments apply.
- Compare the annual result with weekly, fortnightly and monthly views.
- Use the methodology page if you want to see the calculation order.
Frequently asked questions
Does this include GST?
No. This tool is a broad income-tax comparison and does not model GST registration, BAS timing or business structures.
Can it compare leave and super?
It shows employee super and lets you adjust contractor billable days, but it does not assign a dollar value to leave, insurance or job security.