Convert between annual income, day rate, and hourly rate. Includes Australian income tax and Medicare levy estimate.
Tax estimate uses AU individual progressive rates including 2% Medicare levy. Excludes Medicare levy phase-in, HELP debt repayments, private health insurance surcharge, and super contributions. Always confirm with a tax agent.
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Get started free →Divide your target annual income by the number of billable days per year. A common assumption is 220 days (52 weeks × 5 days, minus 4 weeks leave and public holidays). For example, $110,000 ÷ 220 = $500 per day.
Australian contractors pay income tax at individual progressive rates: 0% up to $18,200; 19% from $18,201–$45,000; 32.5% from $45,001–$135,000; 37% from $135,001–$190,000; and 45% over $190,000. A 2% Medicare levy applies on top once income exceeds $26,000. As a contractor you are also responsible for your own superannuation (11.5% of gross is the current SG rate).
You must register for GST once your invoiced income exceeds $75,000 in any 12-month period. Once registered, you add 10% GST to your invoices and lodge a quarterly BAS with the ATO. Many contractors voluntarily register below the threshold to claim GST credits on expenses.
Day rates for Australian IT contractors typically range from $700–$1,600+ per day depending on specialisation, experience, and market demand. Senior developers, architects, and data engineers command the higher end. Rates in Sydney and Melbourne tend to be highest.