Australia Contractor vs Employee Calculator
Compare income and tax between contracting and employment. Shows take-home pay, super contributions and tax obligations for each arrangement.
Typically 240 days/year (48 weeks x 5 days)
| Item | Employee | Contractor | Difference |
|---|---|---|---|
| Gross Annual | $80000.00 | $80000.00 | $0 |
| Income Tax | $16467.00 | $16467.00 | $0.00 |
| Medicare Levy | $1600.00 | $1600.00 | $0 |
| Take-Home (before super) | $61933.00 | $61933.00 | +$0.00 |
| Superannuation | $9200.00 | (self-managed) |
Employee
Annual Salary:$80000.00
Income Tax:-$16467.00
Medicare Levy:-$1600.00
Take-Home Pay:$61933.00
Employer Super (11.5%):+$9200.00
Effective tax rate: 22.6%
Benefits:
- Guaranteed super contributions
- Paid leave (annual + sick)
- Stable income
- Employer insurance
Contractor
Annual Income:$80000.00
Income Tax:-$16467.00
Medicare Levy:-$1600.00
Take-Home Pay:$61933.00
Self-managed Super (11.5%):$9200.00
Take-home after super: $52733.00
Effective tax rate: 22.6%
Considerations:
- Must self-manage super
- No paid leave
- Variable income
- Own insurance costs
Comparison Summary
Take-home difference (before super): $0.00
Take-home difference (after super): $-9200.00
Employees earn more take-home pay (super is additional)
Important Notes:
- Based on 2025 tax rates and super rates
- Contractors do not receive Superannuation Guarantee automatically
- Contractors pay own income protection insurance
- Does not account for tax deductions (contractors may have more)
- Does not include business expenses or ABN costs
- Consult a tax accountant for accurate personal advice
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