πŸ‡¦πŸ‡Ί Built for Australia β€” Free forever

What should you
actually charge?

Most Aussie freelancers undercharge by 30–50%. This calculator factors in income tax, Medicare Levy, superannuation, GST, and your real expenses to find your true hourly rate.

Calculate my rate ↓
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πŸ’° Income Goal
What do you want to take home annually after tax? Think of the net salary you'd accept at a full-time role.
$
⏱ Working Time
Be realistic β€” you won't bill every hour. Account for admin, marketing, gaps between contracts, and unbillable time.
30 hrs
4 wks
πŸ₯ Benefits & Expenses
As a freelancer, you cover everything an employer used to provide. No employer super contributions, no leave loading, no sick leave.
$
$
$
$
$
πŸ“ˆ Profit Margin
Buffer for gaps between contracts, slow months, and business growth.
15%
Your Minimum Freelance Rate
$0
per hour (AUD)
$0
Per Day (8 hrs)
$0
Per Week
$0
Per Month
$0
Annual Gross

How We Got There

Your target take-home pay $0
Income tax19% to 45% progressive brackets, plus tax-free threshold of $18,200 + $0
Medicare Levy2% of taxable income above $24,276 + $0
SuperannuationSelf-funded β€” no employer SG contributions + $0
Private health insurance + $0
Income protection insurance + $0
Software & tools + $0
Other business expenses + $0
Accountant / BAS agent + $0
Profit marginBuffer for gaps, growth, and emergencies + $0
Total you need to earn $0
Γ· Billable hours per year 0 hours
πŸ’‘
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πŸ‡ΊπŸ‡Έ United States πŸ‡¬πŸ‡§ United Kingdom πŸ‡¨πŸ‡¦ Canada πŸ‡¦πŸ‡Ί Australia

Why Most Aussie Freelancers Undercharge

If you just divide your salary by 2,080 hours, you'll end up way out of pocket. Here's what that simple calculation misses.

01

No Employer Super

Employees get 11.5% super on top of their salary (rising to 12% from July 2025). As a sole trader, you fund your own retirement. On $80K that's $9,200 you need to find yourself.

02

Tax + Medicare Levy

Income tax brackets run from 19% to 45%, plus the 2% Medicare Levy. No employer is withholding this for you β€” you need to set aside 25–35% of every invoice for the ATO.

03

Unbillable Hours

You won't bill 40 hours a week, 52 weeks a year. Between finding clients, quoting, admin, invoicing, and holidays β€” most freelancers bill 1,200–1,500 hours a year, not 2,080.

Frequently Asked Questions

How do I calculate my freelance hourly rate in Australia?
Start with your desired annual take-home pay. Add income tax, Medicare Levy, superannuation contributions, insurance, and business expenses. Add a profit margin for gaps and emergencies. Then divide by your realistic billable hours per year (typically 1,200–1,500 hours). That's your minimum hourly rate before GST.
Do I need to register for GST?
You must register for GST if your annual turnover is $75,000 or more ($150,000 for non-profits). Below that, registration is optional. If registered, you charge clients an additional 10% GST on top of your rate and can claim GST credits on business purchases. You'll need to lodge Business Activity Statements (BAS) quarterly or monthly. The GST you collect isn't your income β€” it goes to the ATO.
What is a good freelance rate in Australia?
Rates vary by industry and city. Software developers typically charge $100–$200+/hour, designers $70–$150/hour, writers $60–$120/hour, and consultants $120–$300+/hour. Rates in Sydney and Melbourne tend to be higher than other cities. Calculate YOUR number based on your actual costs rather than guessing from averages.
Do I need to pay my own super as a sole trader?
Sole traders are not legally required to pay super for themselves β€” but you absolutely should. Without employer Superannuation Guarantee (SG) contributions, your retirement savings will fall dramatically behind. You can make personal contributions and claim a tax deduction for them, which also reduces your income tax bill. The current SG rate is 11.5%, rising to 12% from 1 July 2025.
What is the Medicare Levy Surcharge?
The Medicare Levy is 2% of your taxable income, paid by most Australian taxpayers. On top of this, if you earn over $93,000 and don't have private hospital cover, you'll pay the Medicare Levy Surcharge (MLS) β€” an additional 1% to 1.5% depending on income. This is why many freelancers earning above this threshold take out private health insurance: the premiums are often cheaper than the surcharge.
Should I operate as a sole trader or company?
Sole traders pay individual income tax rates (19–45%) on all business income. Companies pay a flat 25% tax rate on profits up to $50 million. However, company structures cost more to set up and maintain ($800–$2,000/year in ASIC fees and accounting), and accessing company profits personally triggers additional tax. A company structure generally makes sense when your income consistently exceeds $120,000–$150,000 and you can leave profits in the business. Speak with an accountant about your specific situation.
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