Free · Updated 2025–26 tax rates

What do you actually
need to charge?

Most freelancers undercharge because they forget to account for super, tax, unpaid weeks, and expenses. This calculator works backwards from your salary to find your true minimum rate.

Your current employee package
$
Your freelance working pattern
Billable weeks per year 46 weeks
30 wks← most freelancers use 44–4652 wks
Billable hours per day 6.5 hrs
4 hrs← not all hours are billable8 hrs
Annual business expenses
$
$
$
$
Minimum hourly rate to match your salary
$0
per hour · $0/day
Day rate
$0
Billable hrs/yr
0
Income breakdown
Gross freelance income needed$0
Self-funded super (12%)−$0
Business expenses−$0
Income tax + Medicare levy−$0
Take-home (matches salary)$0
GST reminder

If your annual turnover exceeds $75,000, you must register for GST and add 10% on top of your rate. Your clients pay this — it's not your income — but you must register and lodge BAS quarterly.

Why most freelancers undercharge

What does this calculator actually do?
It works backwards from your employee take-home pay. Instead of just converting a rate to income, it figures out exactly what gross income you need to generate — after self-funded super, expenses, and tax — to end up with the same money in your pocket as your current salary.
Why not assume 52 billable weeks?
As a freelancer you have no paid leave. 4 weeks of holidays, 5 days of sick leave, and 2–3 weeks between contracts easily eats 6–8 weeks off your year. Most experienced contractors budget for 44–46 billable weeks. Assuming 52 weeks will cause you to significantly undercharge.
Why does the rate include self-funded super?
As a sole trader or ABN contractor, your client doesn't automatically pay super on top of your rate (unless you're a deemed employee). You need to fund your own retirement savings — typically 12% of your gross income — which your rate must cover.
What expenses should I include?
Typical freelancer expenses include: accounting/tax agent fees ($1,500–$3,000/yr), professional indemnity and public liability insurance ($1,000–$3,000), software subscriptions (Adobe, Xero, Microsoft 365 etc.), equipment depreciation, and professional development. Don't forget these — they're real costs your employer was absorbing before.
Do I need to register for GST?
If your annual turnover exceeds $75,000 you must register for GST with the ATO and add 10% on top of your rate. Your clients pay this and you remit it quarterly via BAS. It doesn't increase your income, but failing to register when required can mean penalties.
Is this rate before or after GST?
The rate shown is your base rate — the income component. If you're registered for GST, you'd charge your client this rate plus 10% GST on top. For example: $120/hr base rate → you invoice $132/hr, collect the $12 GST, and send it to the ATO.