Question 1

How do I set my freelance rate in Australia?

Accepted Answer

Your rate needs to cover your desired income plus tax (~30%), superannuation (12%), sick days, public holidays, non-billable time, and overhead. The Freelance Rate Calculator handles all of this automatically — just enter your desired annual income and it works backwards to your minimum hourly and day rate.

Question 2

Do freelancers pay more tax in Australia?

Accepted Answer

You pay the same marginal tax rates as employees, but you're responsible for paying your own tax. The ATO will require quarterly PAYG instalments once your income exceeds a threshold. You'll also be responsible for your own super, which employers typically pay automatically for employees.

Question 3

Do I need an ABN to freelance in Australia?

Accepted Answer

Yes. An Australian Business Number (ABN) is free and fast to register at abr.gov.au. Without an ABN, your clients are required to withhold 47% of your payments under the no-ABN withholding rules. You should get your ABN before you invoice anyone.

Question 4

When do I need to register for GST?

Accepted Answer

GST registration is mandatory once your annual turnover exceeds $75,000. Below this threshold, registration is optional. If you register voluntarily, you can claim GST credits on your business expenses. Many freelancers register from the start for simplicity.

Question 5

How much should I set aside for tax?

Accepted Answer

A common rule of thumb is to set aside 25–35% of every invoice payment into a separate tax account. The exact amount depends on your income level and deductible expenses. A good accountant who specialises in freelancers is usually worth the investment in year one.

💼Going Freelance

Freelance Rate Calculator