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Australia Freelance Salary Calculator

Turn a US-dollar rate into a sole trader's take-home pay after 2026-27 tax with the new 15% bracket, LITO and the Medicare levy.

Updated · By Niraj Kumar · 3 sources

Your rate

$
$0$1,000

Leave out holidays and gaps between clients.

% of revenue

Equipment, software, coworking, accountant, bank and payment fees.

Tax setup

Sole trader. Resident rates from 1 July 2026 with the low income tax offset, plus the 2% Medicare levy.

Take-home in Australia, a monthA$9,165A$109,979 a year · $77,278
Equivalent salary
A$149,260
The salary an employee needs to take home the same; A$71.76 an hour over 2,080 paid hours
Purchasing power
$75,092
What your take-home buys, priced in the US (World Bank PPP 1.46 AUD per $)
Tax and social contributions
25% of revenue
37% of each extra unit you bill
Revenue
A$157,116
$110,400 at 1 USD = A$1.42 (snapshot, 2026-09-24)
You keep70%
  • Take-home70%
  • Social contributions2%
  • Income tax23%
  • Business costs5%

Where the money goes, a year

Revenue
A$157,116
Business costs
−A$7,856
Medicare levy
−A$2,985
Income tax
−A$36,296
Take-home
A$109,979
  • Sole traders get no superannuation guarantee; employees get 12% on top of salary, which the salary comparison mentions but does not add.
  • The Medicare levy surcharge for high earners without private hospital cover is not included.
The same $60/hour in 15 countriesShow
Rank byRank by
Take-home pay from the same US-dollar revenue in each country, on its most common freelance regime
CountryTake-home, localIn USDPPP $Tax + social
IndiaPresumptive, section 44ADA₹8,726,820$90,942$439,88413%
Philippines8% flat rate₱5,406,358$86,157$263,29417%
BrazilPJ on Simples Nacional (Anexo III)R$471,790$91,065$182,75913%
RomaniaPFA (real system)RON 390,165$84,030$178,93119%
MexicoRESICO (régimen simplificado de confianza)MX$1,805,391$102,672$159,6452.0%
PolandRyczałt 12% (IT services)PLN 315,857$81,928$153,09421%
ColombiaTrabajador independienteCOP 243,641,332$74,636$146,27927%
SpainAutónomo (estimación directa)€57,906$65,822$95,26335%
PortugalTrabalhador independente (simplified regime)€53,672$61,009$93,38940%
United KingdomSole trader£57,327$75,784$81,71726%
United States1099 sole proprietor$81,028$81,028$81,02822%
NetherlandsZZP'er (eenmanszaak)€61,777$70,222$80,50731%
CanadaSole proprietor (Ontario)CA$101,260$71,728$80,33530%
GermanyFreiberufler (voluntary GKV)€55,535$63,126$77,25138%
AustraliaSole traderA$109,979$77,278$75,09225%

How is freelance income taxed in Australia?

Revenue = Rate × Hours × Weeks × FX, Take-home = Revenue − Expenses − Social − Tax, Salary* : Net_employee(Salary*) = Take-home, PPP $ = Take-home ÷ PPP

This page uses the same method as the Freelance Hourly Rate to Salary Calculator, which explains each term and assumption in full.

Worked example

A freelancer in Australia bills a US client $60 an hour for 40 hours a week, 46 weeks a year, with 5% in business costs, as a Sole trader.

  1. 1Revenue: $60 × 40 × 46 = $110,400, or A$157,116 at A$1.42 per dollar (ECB, 2026-09-24)
  2. 2Social contributions: A$2,985; income tax: A$36,296; together 25% of revenue
  3. 3Take-home after A$7,856 of costs: A$109,979 a year, A$9,165 a month ($77,278)
  4. 4An employee in Australia would need to earn A$149,260 (salary) to take home the same
  5. 5At purchasing power parity that take-home buys what $75,092 would in the US

$60 an hour is worth about the same as a A$149,260 salary in Australia.

Frequently asked questions

How much tax does a freelancer pay in Australia in 2026-27?

On $60 an hour (A$157,116 a year), about 25% of revenue goes to social contributions and income tax as a Sole trader, leaving A$109,979 after 5% of costs. Resident rates from 1 July 2026 with the low income tax offset, plus the 2% Medicare levy.

Does the equivalent salary include super?

No. It is the salary before super, the figure on a job ad that says "+ super". An employer pays 12% super on top, so a contractor should also set that much aside to match the package; a sole trader can claim a deduction for personal super contributions up to the $30,000 concessional cap.

What changed on 1 July 2026?

The 16% rate on income between $18,201 and $45,000 fell to 15%, saving up to $268 a year. It falls again to 14% from 1 July 2027.

Do clients abroad withhold tax from a freelancer in Australia?

Services to overseas clients are generally GST-free. Clients abroad do not withhold; you pay PAYG instalments once the ATO asks.

Sources

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