Contractor vs Employee at $60k: Which Pays More?

Earning $60k puts you in the 30% marginal bracket with a marginal rate of 30% for 2026-27. As an employee, your employer handles PAYG withholding, super guarantee (12%), and payroll tax — but you have limited deductions. As a contractor invoicing at roughly $250/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 you're below the $75,000 GST registration threshold, so GST registration is optional — though voluntary registration can let you claim GST credits on business expenses. 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.