Going contracting means funding your own super and getting no paid leave — so your rate needs to be higher than salary divided by working days. See the rate you need, or the salary a rate is really worth.
1
Your details
days
Around 260 workdays less annual leave, public holidays, sick days and time between contracts.
Include 12% super
2
What you need
Day rate to match this salary
$0
Salary being matched
Plus 12% super
Plus business costs
Billable days
Day rate needed
Common questions
How do I convert a salary to a contract day rate?
Add 12% super to the salary, add any business costs, then divide by your billable days a year (often around 220 after leave, public holidays, sick days and time between contracts). That gives a rate that genuinely matches the salary.
Why is a contractor rate higher than salary divided by working days?
Because contractors get no paid annual leave, sick leave or public holidays, must fund their own super, and carry costs and downtime. The higher rate compensates for all of that, so comparing a raw day rate to a salary understates what you need.
How many billable days should I use?
Start from about 260 weekdays, then subtract 4 weeks annual leave, around 11 public holidays, a week of sick days, and a buffer for time between contracts — landing near 220. Adjust it to match how much work you expect.
Does this include income tax?
No — both the salary and the rate here are before income tax, so they compare like with like. Use our pay calculator to see the take-home on either figure, and remember contractors usually pay tax via quarterly PAYG instalments.