Guide
Contractor Day Rate to Salary
How to compare a contractor day rate with an employee salary in Australia.
Written for Australian workers and job seekers · Updated 2026-09-13 · General information only
Plain-English answer
Helpful before using the calculator
Updated 2026-09-13
Worked example
A day rate must pay for the days you cannot invoice too
A $700 day rate for 220 billable days gives $154,000 of gross business revenue before GST treatment, business expenses, insurance, unpaid leave, gaps between contracts, tax and super planning. Compare that with an employee's cash salary plus employer super and paid entitlements. The calculator is a financial comparison, not a test of whether the legal relationship is contracting or employment.
Check before relying on it
- Use billable days after public holidays, leave and likely gaps.
- Subtract insurance, equipment, accounting and other business costs.
- Allow for your own super, tax instalments and unpaid time off.
- Check the real working relationship if the role looks controlled like employment.
What this page helps you answer
What this pay, tax or salary topic means in simple terms.
What number or setting to check next in the calculator.
Which assumption could change the answer most.
When to stop using a rough estimate and ask payroll, the ATO or a qualified adviser.
Annualise realistic billable days
Do not multiply by every weekday unless you truly expect to bill every one. Allow for leave, sickness, public holidays and gaps.
Employee benefits have value
Paid leave, employer super, workers compensation and stability can make a lower salary more competitive than it first appears.
Tax is only one part
The pay calculator helps estimate income tax, but contractor structure and deductions may require professional advice.
Before you make a decision
Use the guide to understand the topic, then check the number with your own inputs. If the result affects a resignation, job offer, visa decision, redundancy, tax return or family budget, confirm the details with the right official source or adviser.
Check the financial year.
Confirm whether super is included or added on top.
Check HELP debt and tax residency settings.
Compare weekly, fortnightly and monthly cashflow.
Common questions
What day rate equals a salary?
It depends on billable days, costs, unpaid leave, super and risk buffer.
Should contractors include super?
Contractor arrangements vary. Check the contract and legal position carefully.