Freelance Rate Calculator — Australia
Australian sole traders pay income tax at individual rates plus the 2% Medicare levy — there’s no separate self-employment tax, but there’s also no employer paying your superannuation. The ATO’s Pay As You Go (PAYG) instalment system moves you onto quarterly prepayments after your first notable tax bill. Many freelancers voluntarily set aside 9–12% extra for super, since nobody else will.
Tax estimate: 2025–26 income year. Details in theAustralia tax calculator.
What Australian freelancers need to price in
- The tax-free threshold is $18,200; the Medicare levy adds 2% above the low-income threshold.
- Register for GST once turnover passes $75,000 — then you’re invoicing +10% and remitting quarterly.
- PAYG instalments typically begin automatically after your first year with tax payable over $500.
- Super is not compulsory for sole traders — but concessional contributions are tax-deductible.
Data reviewed: August 2026. Primary source:ATO — Individual income tax rates.
Worked example
Targeting $100,000 pre-tax with$6,000 of annual costs, billing 25 hours a week with 6 weeks off, gives a billable year of 1,150 hours. The calculator adds your margin, divides, and also estimates the tax bite on that income under the 2025–26 income year — so you can see in one glance what the rate on your invoices turns into in your pocket.
Frequently asked questions
What is a good freelance hourly rate in the Australia?
There is no universal “good” rate — it depends on your field, seniority and clients. What matters is that your rate covers your target income, your business costs, your unbillable time, and the tax profile described below. Use the calculator above with honest inputs; a Australian freelancer billing 25 hours a week with 6 weeks off needs a rate roughly double the equivalent employee hourly wage to end up in the same place.
How much should an Australian freelancer set aside for tax?
Around 25–30% of profit covers most sole traders under $135,000, rising to 35%+ in the top brackets once the Medicare levy is included. Add roughly 10% more if you want to pay yourself superannuation like an employer would.
Is this rate before or after tax?
Before tax. The target income you enter is pre-tax income; the calculator tells you what to bill to reach it. To see what you'll keep, run your profit through the Australia Tax Set-Aside Calculator linked below.
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Estimates for planning only — not tax or financial advice. Tax calculation is simplified (see the tax calculator for assumptions) and excludes state/provincial variations where noted. Full disclaimer.