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Contractor vs Employee Calculator

Compare the true financial outcome of contractor vs employee in Australia, accounting for super, leave, tax, GST, and business expenses.

Your Details
Contractor hourly rate
$
Billable hours/week
hrs
Billable weeks/year
wks
Annual business expenses
$
Equivalent employee salary
$
Comparison
Contractor advantage
—
ItemContractorEmployee

The Contractor Premium

Contractors typically need to earn 25–40% more than an employee equivalent to match total compensation, to cover: super (12%), annual leave (4 weeks = ~7.7%), sick leave, public holidays, business expenses, accounting fees, and income risk during non-billable periods.

ATO PSI Rules

If most of your income comes from one client and is for your personal skills/effort, Personal Services Income (PSI) rules may apply — limiting some deductions and requiring personal tax rates.