Salary Comparison

What can you get from this tool?

  • As a salary calculator, it can show you salary details including:
    • Taxable income
    • Income after tax
    • Total income tax and overall tax rate
    • Total superannuation
    • Daily or hourly rate with and without super
    • Medical levy
  • As a salary comparison tool, it can compare two different salaries with all details above
    • More specifically, it can eaily compare a contract salary with a permanent salary which could support you to make a proper decision between two different job types.
    • For permanent salary calculation, it can quantify the annual leaves by converting it into dollars. If you don't want to do that, just update the number of Paid leaves into zero.
    • For contract salary calculation, it includes an option of unpaid leaves if you want to take leaves without payment.
  • As a salary converter, it can convert contract daily/hour salary into permanent annual rate and vice versa.
    • Based on data we collected, contract's average annual salary is ... higher than permanent

How salary is calculated

  • The tax rate is based on the latest 2026 tax rate announced on ATO
  • The current super rate is 12.00% and the tax rate for super is 15.00%
  • Medical levy is 2.00% of taxable income when taxable income is over $34,027.00

Australian Tax Rate for 2026

$0 - $18,200
0.0%
Nil
$18,201 - $45,000
16.0%
16.0% for each $1 over $18,200
$45,001 - $135,000
30.0%
$4,288 plus 30.0% of amounts over $45,000
$135,001 - $190,000
37.0%
$31,288 plus 37.0% of amounts over $135,000
$190,001 and over
45.0%
$51,638 plus 45.0% of amounts over $190,000

Which part of Australia are you in?

Salary Details

$
%
days
$
%
days
Total income (With paid leaves)
Permanent
$107,662.84
Contractor
$124,982.00 win
Diff
-$17,319.16
Total income
Permanent
$96,127.53
Contractor
$111,591.07 win
Diff
-$15,463.54
Super
Permanent
$11,535.30
Contractor
$13,390.93 win
Diff
-$1,855.62
Income after tax (With paid leaves)
Permanent
$86,306.28
Contractor
$98,708.04 win
Diff
-$12,401.76
Net income
Permanent
$76,501.27
Contractor
$87,325.75 win
Diff
-$10,824.48
Super
Permanent
$9,805.01
Contractor
$11,382.29 win
Diff
-$1,577.28
Tax (Rate)
Permanent
$21,356.56 (19.84%)
Contractor
$26,273.96 (21.02%) win
Diff
-$4,917.41 (-1.19%)
Income tax (Rate)
Permanent
$19,626.26 (20.42%)
Contractor
$24,265.32 (21.74%) win
Diff
-$4,639.06 (-1.33%)
Super tax (Rate)
Permanent
$1,730.30 (15.00%)
Contractor
$2,008.64 (15.00%) win
Diff
-$278.34 (0.00%)
Daily rate with super
Permanent
$383.14
Contractor
$494.00 win
Diff
-$110.86
Daily rate
Permanent
$342.09
Contractor
$441.07 win
Diff
-$98.98
Hour rate with super
Permanent
$47.89
Contractor
$61.75 win
Diff
-$13.86
Hourly rate
Permanent
$42.76
Contractor
$55.13 win
Diff
-$12.37
Paid days
Permanent
win281
Contractor
253
Diff
28
Medical levy
Permanent
$1,922.55
Contractor
$2,231.82 win
Diff
-$309.27

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Frequently Asked Questions

What is the difference between a contract and a permanent salary in Australia?

A permanent employee receives a fixed annual salary with benefits like superannuation, leave entitlements, and job security. A contractor charges a higher hourly or daily rate but is responsible for their own tax, superannuation, insurance, and has no leave entitlements.

How much more should a contractor earn compared to a permanent employee?

A common rule of thumb is that contractors should earn 15–30% more than permanent employees to account for no annual leave, sick leave, public holidays, superannuation, and the cost of running their own business.

Is superannuation included in a contract rate?

For contractors operating through their own company or trust, superannuation is typically not included in the day rate — you must pay it yourself. However, if you are a deemed employee under the superannuation guarantee rules, your client may be required to pay super on your behalf.

Do contractors pay more tax in Australia?

Contractors pay the same marginal income tax rates as employees. However, they must lodge their own tax returns, pay PAYG instalments, and cannot claim the tax-free threshold if they have multiple sources of income.

What is the conversion rate between contract and permanent salary?

The conversion rate (or uplift factor) is typically 1.15 to 1.30, meaning a contractor earns 15–30% more than the equivalent permanent salary. The exact rate depends on your industry, role, and whether the contract includes superannuation.