A **$90,000** PAYG package is not **$90,000** of billable day-rate revenue. Medicare Levy and marginal PAYG rates stack on the full taxable income, while sole traders also need to self-fund super if they want parity with SG.
Three AUD checkpoints
- $90k PAYG: model net often lands near $63k–$66k after PAYG + 2% Medicare Levy (simplified). - $90k ABN revenue, $9k expenses: net frequently falls $4k–$7k lower once you add voluntary 11.5% super on profit. - $130k PAYG: nets roughly $88k–$92k in this toy model—freelancers quoting $130k flat rarely keep that cash without expenses under 5%.
GST note
GST is 10% on taxable supplies once registered—quote exclusive or inclusive deliberately; our calculator stays GST-exclusive on revenue inputs.
Limits
LITO/MLS tiers and Division 293 are not modeled. VERIFY with your tax agent if you are near $250k+ total income.
Worked example: A$90,000 salary — what you keep
A$90,000 PAYG often lands ~A$65,500 net after PAYG withholding (~A$18,500 including Medicare Levy 2% in typical models) while the employer pays 11.5% Super Guarantee (~A$10,350) on top—real comp ~A$100,350. An ABN sole trader with A$90,000 revenue and A$9,000 expenses—after income tax/Medicare on A$81,000 profit and voluntary 11.5% super (~A$9,300)—often keeps ~A$58,000–A$60,000 cash. The gap is mostly super and no paid leave accrual.
| Item | PAYG (A$90k) | ABN sole trader (A$90k rev) |
|---|---|---|
| Package / revenue | A$90,000 | A$90,000 |
| Business expenses | — | −A$9,000 |
| Taxable profit / income | A$90,000 | A$81,000 |
| PAYG / income tax + Medicare | −A$18,500 | −A$16,200 |
| Super (SG employer / voluntary) | A$10,350 employer-paid | −A$9,300 (voluntary) |
| ≈ Cash + super wealth | ≈ A$65,500 + A$10.4k super | ≈ A$55,500 + A$9.3k super |
GST **10%** applies after the **A$75,000** registration threshold for most businesses—keep invoices ex-GST in the tool unless you toggle otherwise.
Common mistakes when comparing Australian net pay
Ignoring Super Guarantee
Employers pay 11.5% on ordinary time earnings (2024/25 headline). Freelancers who “match” a salary without funding super retire with a six-figure hole over a decade.
Using “no tax-free threshold” incorrectly
Second jobs and some contracts withhold at higher rates—your end-year refund may differ from monthly cash flow.
Forgetting unpaid leave
20 days annual leave + 10 sick as an employee is ~A$8–12k of implied value at mid rates—contractors invoice it or lose it.
Mixing GST into personal income
GST collected is not salary—it’s a liability until BAS reconciliation.
Who benefits most from freelancing in Australia?
When ABN contracting wins
Freelancing pays when:
- Your **day rate** clears **A$1,000+** in tight niches (cloud, security, SAP, niche data).
- You keep **>80% billable** utilisation across the year.
- You expense real **tools, insurance, coworking** (where allowed).
- You still fund **concessional super** to chase parity.
When PAYG is safer
Employment is smarter when:
- Your implied rate is **<A$700/day** with admin overhead.
- You rely on **paid parental leave** and **group income protection**.
- You need a **home loan** with conservative servicing tests.
- You dislike **BAS** cadence and debtor risk.
FAQ
Because SG is real comp for employees; ignoring it makes freelance look artificially rich.
No—high earners with concessional super may owe extra; verify with your agent.
Default is GST-exclusive business revenue unless your build states otherwise.
Pty Ltd + wages/dividends are not modeled on this page.
Often **A$105k–A$125k+** invoiced with typical expenses and voluntary super.
Include them via calculator toggles if available; thresholds change yearly.
Not explicitly—low-income offsets can lift net for smaller bases.
Yes—prorate revenue; watch PAYG withholding vs actual liability at year-end.