ABN vs PAYG · Australia 2025–26

Contractor Pay Calculator

Should you go contracting? Enter your daily rate and see exactly how your take-home compares to a permanent role — including tax, super, hidden costs, and leave entitlements.

Your Numbers

Daily rate $750/day

$300$2,000

Billable days per year 230 days

200 days260 days

Business structure

Pty Ltd uses 25% company tax. Sole trader uses personal marginal rates.

Registered for GST

Collect and remit 10% GST on invoices (cash-flow neutral)

Superannuation

Self-funded super reduces take-home but builds retirement savings.

Business expenses $5,000/yr

$0$30,000

Insurance, accounting, equipment, home office — all tax deductible.

Unpaid leave per year 2 wks

0 weeks6 weeks

2025–26 Tax Brackets

$0 – $18,200 0%

$18,201 – $45,000 16%

$45,001 – $135,000 30%

$135,001 – $190,000 37%

$190,001+ 45%

+ 2% Medicare levy applies to all taxable income.

Annual Take-Home Comparison

Contractor (ABN/Pty Ltd)

—

net take-home

Gross revenue —

GST —

Business expenses —

Taxable income —

Income tax —

Medicare levy —

Super (self-funded) —

Employee (PAYG)

—

net take-home

Salary (rate × 260d) —

Employer super —

Tax withheld —

Medicare levy —

Leave entitlements —

Side-by-Side

Contractor net take-home —

—

Employee net take-home —

—

Employee leave entitlements (+40 days) shown as value at your daily rate.

The Real Hourly Rate

Contractor

—

after all deductions & costs

Employee

—

effective rate from salary

Hidden Costs of Contracting

What you give up that employees get for free:

📅 No annual leave (20 days × daily rate) —

🤒 No paid sick leave (10 days × daily rate) —

🎆 No paid public holidays (10 days × rate) —

🏦 No employer super contribution (11.5%) —

🛡️ Insurance (PI + public liability est.) —

📊 Accounting & BAS lodgement est. —

Break-Even Daily Rate

—

⏳

Calculating…

Note: This calculator provides estimates only and is not financial or tax advice. 2025–26 ATO rates used. Pty Ltd calculations are simplified — actual outcomes depend on profit retention, dividend policy, and professional advice. Employee salary equivalent assumes a role at rate × 260 days. Consult a registered tax agent before making contracting decisions.