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
https://checkpre.com/finance/freelance-salary-calculator-australia
Your rate
Leave out holidays and gaps between clients.
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.
- 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)
- 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 countriesShowHide
| Country | Take-home, local | In USD | PPP $ | Tax + social |
|---|---|---|---|---|
| IndiaPresumptive, section 44ADA | ₹8,726,820 | $90,942 | $439,884 | 13% |
| Philippines8% flat rate | ₱5,406,358 | $86,157 | $263,294 | 17% |
| BrazilPJ on Simples Nacional (Anexo III) | R$471,790 | $91,065 | $182,759 | 13% |
| RomaniaPFA (real system) | RON 390,165 | $84,030 | $178,931 | 19% |
| MexicoRESICO (régimen simplificado de confianza) | MX$1,805,391 | $102,672 | $159,645 | 2.0% |
| PolandRyczałt 12% (IT services) | PLN 315,857 | $81,928 | $153,094 | 21% |
| ColombiaTrabajador independiente | COP 243,641,332 | $74,636 | $146,279 | 27% |
| SpainAutónomo (estimación directa) | €57,906 | $65,822 | $95,263 | 35% |
| PortugalTrabalhador independente (simplified regime) | €53,672 | $61,009 | $93,389 | 40% |
| United KingdomSole trader | £57,327 | $75,784 | $81,717 | 26% |
| United States1099 sole proprietor | $81,028 | $81,028 | $81,028 | 22% |
| NetherlandsZZP'er (eenmanszaak) | €61,777 | $70,222 | $80,507 | 31% |
| CanadaSole proprietor (Ontario) | CA$101,260 | $71,728 | $80,335 | 30% |
| GermanyFreiberufler (voluntary GKV) | €55,535 | $63,126 | $77,251 | 38% |
| AustraliaSole trader | A$109,979 | $77,278 | $75,092 | 25% |
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 ÷ PPPThis 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.
- 1Revenue: $60 × 40 × 46 = $110,400, or A$157,116 at A$1.42 per dollar (ECB, 2026-09-24)
- 2Social contributions: A$2,985; income tax: A$36,296; together 25% of revenue
- 3Take-home after A$7,856 of costs: A$109,979 a year, A$9,165 a month ($77,278)
- 4An employee in Australia would need to earn A$149,260 (salary) to take home the same
- 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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