A $900 day rate sounds like far more than a $150,000 salary. Once you pay your own super, go without paid leave and allow for gaps between contracts, it's often closer than you think.
Uses 2026–27 resident tax rates plus 2% Medicare levy, and assumes the contractor puts in 12% super themselves to match the super guarantee. Ignores offsets, HELP, the Medicare levy surcharge and business structures. Estimate only.
What the salary includes that a contract doesn't
- Super guarantee: 12% on top of ordinary earnings, paid by the employer.
- Paid leave: annual leave, personal leave and public holidays. 210 billable days is a common rough figure after leave, holidays and gaps.
- Workers' compensation and income stability.
What contracting can offer
- Higher gross pay and some business deductions.
- Flexibility to choose work.
- But: personal services income rules may limit what you can claim, and the label on the contract doesn't decide whether you're really an employee.
Sources
- ATO: Tax rates for Australian residents 2026–27
- ATO: Super guarantee percentage (12% for 2026–27)
- ATO: Employee or contractor decision tool
Figures checked 1 November 2026.