Contractor vs Employee Rate Calculator (Australia 2026-27)
Turn a salary into the hourly and day rate you'd need as an ABN contractor to come out even after 12% super, paid leave, public holidays, overheads and time between contracts. Or check what a contract rate is worth as a salary.
Last updated 29 Oct 2026Figures for 2026-27Sources: ATO, SRO Victoria, ASIC Moneysmart
Your results
- Equivalent contractor rate (ex GST)
- Inc GST, if registered
- Day rate (ex GST)
- Package to replace
- Billable hours / yr
- Offered rate as equivalent salary
Not financial or tax advice. This is a general estimate from the figures you enter. It does not consider your personal circumstances. Check with a registered tax agent or licensed adviser before acting.
How it's calculated
- Package = salary + super + leave loading + your overheads.
- Billable weeks = 52 − annual leave − public holidays ÷ 5 − personal leave ÷ 5 − gaps between contracts.
- Equivalent rate = package ÷ (billable weeks × hours per week).
- Offered rate as salary = (offered rate × billable hours − overheads) ÷ (1 + super %).
Worked example
A $100,000 salary plus 12% super is $112,000. Take out 4 weeks' leave, 10 public holidays and 10 personal days, and 44 weeks × 38 hours = 1,672 hours remain. That's $66.99/hr before overheads or gaps. A naive $100,000 ÷ 1,976 hours would give $50.61/hr.
Sources & assumptions
- ATO: Super guarantee 12% (2026–27).
- Fair Work Ombudsman: National Employment Standards (4 weeks' annual leave, 10 days' personal/carer's leave, public holidays).
- ATO: GST registration ($75,000 threshold).
- ATO: Employee or independent contractor.
- The number of public holidays varies by state (about 10–13) and leave loading depends on your award. Both are inputs.
Last checked 29 October 2026. Ignores tax differences, PSI rules, workers' comp and payroll tax. General information, not advice.
FAQ
How much more should a contractor charge than an employee?
Enough to cover the super, paid leave and public holidays an employee gets, plus your own overheads and the gaps between contracts. That often works out at 30–60% more per hour than the salary divided by 1,976 hours.
Do contractors have to be paid super?
Sometimes. Under ATO rules, an individual contractor paid mainly for their labour can be treated as an employee for super guarantee purposes. If you're paid through your own company or ABN without super, build the 12% in yourself.
How many leave days do employees get?
Under the National Employment Standards, full-time employees get 4 weeks' paid annual leave and 10 days' paid personal/carer's leave a year, plus public holidays (Fair Work Ombudsman).
Does the rate include GST?
The main result is ex-GST. If you're registered for GST (required at $75,000 turnover), add 10% on top.
Am I really a contractor?
Labels don't decide it. The ATO and Fair Work look at the whole relationship. Check the ATO employee/contractor decision tool.