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Day rate calculator: what to charge on your new ABN

The salary-to-day-rate conversion everyone does on a napkin, done properly: costs in, realistic days in, GST separated out.

Day rate to quote, before GST–
GST line on the invoice (if registered)–
Invoice total per day–

The GST you collect isn't yours. It passes through to the ATO. Your income is the ex-GST rate.

Why your day rate isn't salary ÷ 260

An employee's $90,000 comes with paid leave, public holidays, sick days, super, and someone else buying the laptop. Self-employed, you fund all of it from billable days, and there are far fewer of those than the calendar suggests. Quoting, invoicing, travel between jobs, slow weeks: most sole traders genuinely bill 200 to 230 days a year. Build the rate on real days and real costs or the shortfall becomes your problem every December.

Costs worth remembering

  • Tools and equipment (and replacing them), vehicle, insurance, licences, software, phone and internet.
  • Your own super, nobody else is paying it now.
  • Accounting, and the buffer for weeks that don't bill.

The GST line, briefly

Once your ABN is GST-registered, invoices show your rate plus 10%, the 10% is collected for the ATO, not kept. Check the calculator's yearly figure against $75,000: full-time professional and trade rates cross it comfortably, which makes GST registration compulsory. Setting up now? An ABN application can include the GST registration in the same pass.

Quick answers

How many billable days a year is realistic?

200–230 for most sole traders, once leave, holidays, sick days, quoting and admin come out of the ~260 weekdays. Assuming all 260 quietly under-prices you by roughly 15%.

Is the GST part of my day rate income?

No. It's collected on top of your rate and passed to the ATO through your BAS. When comparing against an old salary, use the ex-GST figure only.

Should super be inside the rate?

Yes, as a cost line or built into the target income. Employees get it on top of salary; you only get what you set aside.

Do I need an ABN before I can invoice a day rate?

Practically yes, businesses paying an invoice without an ABN generally must withhold at the top tax rate, so clients expect an ABN on every invoice. It's the first piece of setup, before rates and GST.

Related: ABNs for sole traders · Invoicing without an ABN · All business calculators

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