Your freelance income details
Registered for GST?
Required if income exceeds $75,000/year
Do you have a HECS/HELP debt?
Student loan repayments are income-tested
Take-home pay
—
after all tax
Total tax owed
—
inc. Medicare levy
Quarterly payment
—
PAYG instalments
Effective tax rate
—
of taxable income
Full tax breakdown
Gross income—
Less: business expenses—
Plus: other income—
Taxable income—
Income tax—
Medicare levy (2%)—
Total tax payable—
📅 PAYG quarterly instalment schedule
Q1
Due 28 Oct
—
Q2
Due 28 Feb
—
Q3
Due 28 Apr
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Q4
Due 28 Jul
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Tax tips for Australian freelancers
Set aside 30% from day one
A simple rule — put 30% of every payment into a separate savings account. This covers income tax, Medicare levy and GST. Adjust up if you earn over $120k.
Claim every legitimate expense
Home office, internet, phone, software subscriptions, equipment, professional development, accounting fees — all deductible if used for your business. Keep receipts for everything.
PAYG instalments save you
Once you earn over ~$4,000 in tax, the ATO will ask you to pay quarterly instalments. This prevents a massive tax bill in July — budget for it from the start.
Home office deduction
The ATO's fixed rate method allows 67 cents per hour worked from home. Keep a diary of hours. For a dedicated home office you can also claim a proportion of rent, electricity and internet.
Register for GST early
You must register for GST once you earn $75,000+. Register before you hit this threshold to avoid back-paying GST. Once registered add 10% to all invoices.
Get an accountant
A good accountant costs $300-600/year and typically saves you far more than that in legitimate deductions. Their fee is also tax deductible. It's worth it from year one.
Frequently asked questions
How much tax do freelancers pay in Australia?
Australian freelancers pay income tax at the same marginal rates as employees, plus a 2% Medicare levy. The rates for 2025-26 are: 0% up to $18,200, 16% from $18,201-$45,000, 30% from $45,001-$135,000, 37% from $135,001-$190,000, and 45% above $190,000. You only pay the higher rate on the income within each bracket, not on your total income.
Do I need to register for GST as a freelancer?
You must register for GST if your annual turnover (income) is $75,000 or more. Once registered you charge 10% GST on top of your fees and pay the net amount to the ATO quarterly or annually via a Business Activity Statement (BAS). You can also claim GST credits on business purchases.
What are PAYG instalments?
Pay As You Go (PAYG) instalments are quarterly tax payments made directly to the ATO. Once your tax liability exceeds approximately $4,000, the ATO will automatically enrol you and send quarterly notices. This prevents a large unexpected tax bill at the end of the financial year.
What expenses can I claim as a freelancer?
Common deductible expenses include: home office costs, internet and phone (business portion), software subscriptions, equipment and hardware, professional development and courses, accounting and legal fees, marketing and advertising, and travel for business purposes. Keep receipts for everything — the ATO can audit up to 5 years back.
Is this calculator accurate?
This calculator provides a close estimate based on 2025-26 ATO tax rates and thresholds. It does not account for all possible offsets, levies or individual circumstances. Always consult a registered tax agent or accountant for advice specific to your situation.