Contractor vs Employee at $100k: Which Pays More?
Earning $100k puts you in the 30% marginal bracket with a marginal rate of 30% for 2025–26. As an employee, your employer handles PAYG withholding, super guarantee (11.5%), and payroll tax — but you have limited deductions. As a contractor invoicing at roughly $417/day, you can claim legitimate business expenses ($6,000+ for home office, equipment, and professional development), but you're responsible for your own super, insurance, and leave entitlements.
At this income level you must register for GST, which means charging 10% on top of your invoices and remitting it quarterly via a BAS. The comparison below models both scenarios with identical gross income so you can see exactly where the money goes — tax, super, GST obligations, and deductible expenses — and what lands in your pocket after everything is accounted for.
Frequently asked questions
How much take-home pay does a $100k contractor keep compared to an employee?
It depends on deductible expenses and super strategy. At $100k a contractor charging $417/day can typically claim $6,000+ in deductions, which lowers taxable income. However, contractors must self-fund super (11.5%), leave, and insurance. Use the calculator above to see the exact net comparison for your situation.
Do I need to register for GST as a contractor earning $100k?
Yes. The ATO requires GST registration once your business turnover reaches $75,000. At $100k you must charge 10% GST on invoices, lodge quarterly BAS returns, and remit the GST collected — though you can also claim GST credits on business purchases.
Should I salary sacrifice or go contractor at $100k?
At $100k (in the 30% marginal bracket), salary sacrifice into super is taxed at just 15% instead of 30% — an immediate saving on every dollar sacrificed up to the $30,000 concessional cap. Contracting offers broader deductions but carries more admin burden and risk. Compare both options in the calculator to see which works better for your goals.
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Read our in-depth guide to understand the methodology, edge cases, and planning strategies behind this comparison.
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