Subby to Salary Calculator
Subbies usually take unpaid time off between jobs — 46 leaves room for that.
Tools, ute running costs, insurance, licences.
Net take-home (annual)
$81,424
Net take-home (weekly)
$1,565.85
Effective tax rate
23.0%
Gross annual billings
$115,000
A PAYG employee earning $115,000/yr salary would ALSO get +$13,800/yr super on top from their employer — as a subby on an ABN, that's on you to fund yourself.
At a $500/day rate for 5 days a week over 46 weeks, gross billings of $115,000 become $81,424 take-home after estimated business expenses, income tax and the Medicare levy — an effective rate of 23.0%.
Quick answer
A subby's take-home pay is gross day-rate billings (day rate times days times weeks) minus business expenses, income tax and the 2% Medicare levy. On a $500/day rate for 5 days a week over 46 weeks, gross billings of $115,000 become $81,424 take-home, and you'd also miss out on $13,800/yr super a PAYG employee would get.
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Subby to Salary Calculator is one of pay, contractor and work tools on OneCalculate — see the full set for this category.
Browse Pay & ContractorHow it works
This subby to salary calculator converts a day rate you invoice under your own ABN into what actually lands in your bank account once tax and your own running costs are accounted for. It’s built for tradies who think in day rates rather than hourly rates, and it doubles as a broader subcontractor pay calculator for anyone comparing ABN billings against a PAYG salary offer. Like other tradie day rate calculator tools, it assumes you operate as a sole trader — the structure most subcontractors use — taxed at ordinary individual marginal rates, not through a company or trust.
The calculation runs in five steps:
Gross annual billings = Day rate × Days per week × Weeks per year
Taxable income = Gross annual billings × (1 − Business expenses %)
Income tax = ATO individual marginal tax rates applied to taxable income
Medicare levy = Taxable income × 2%
Net take-home pay = Taxable income − Income tax − Medicare levyIncome tax is calculated using the ATO’s individual resident tax brackets for FY2026-27. The 2% Medicare levy is applied on top, per the ATO’s Medicare levy page. A separate comparison figure shows the 12% Super Guarantee, as set out on the ATO’s key superannuation rates page, that a PAYG employee earning the same gross amount as salary would receive on top from their employer. As a subby working off an ABN, nobody pays that super for you — it’s shown as an information-only reminder of what you’re funding yourself, not subtracted from your subby take home pay figure above it.
Worked example
Dean is a concreter subcontracting around Ipswich, Queensland. He quotes builders $500 a day and typically works 5 days a week across 46 weeks a year, leaving a few weeks spare between jobs for gaps in the pipeline. His deductible running costs — a trailer, tools, ute fuel, insurance and his white card renewal — come to roughly 8% of billings.
Dean’s gross annual billings are $500 × 5 × 46 = $115,000. Deducting 8% expenses ($9,200) leaves a taxable income of $105,800. Applying the FY2026-27 tax brackets gives income tax of $22,260, plus a 2% Medicare levy of $2,116 — a combined effective tax rate of about 23.0%. That leaves Dean with $81,424 net take-home for the year, or roughly $1,565.85 a week.
He also checks what he’d be missing as a subby: a PAYG concreter earning $115,000 salary would get an extra $13,800 a year in employer super, which Dean has to fund himself from his own take-home pay.
| Amount | |
|---|---|
| Gross annual billings | $115,000 |
| Business expenses (8%) | $9,200 |
| Taxable income | $105,800 |
| Income tax + Medicare levy | $24,376 |
| Net take-home pay | $81,424 |
| Employer super a PAYG worker would get (informational) | $13,800 |
Frequently asked questions
How do I work out my take-home pay as a subby on a day rate?
Multiply your day rate by days worked per week and weeks worked per year for gross billings, subtract your business expenses to get taxable income, then subtract income tax and the 2% Medicare levy. What's left is your net take-home pay as a sole trader subcontractor on an ABN.
How much super do I miss out on as an ABN subcontractor?
None is paid to you automatically — a payer isn't required to pay super to a genuine ABN subcontractor. This subcontractor pay calculator shows what a PAYG employee earning the same gross salary would receive on top from their employer, at the 12% super guarantee rate, so you can see the gap.
What's a fair day rate for a subby compared to a PAYG tradie's salary?
A fair subby day rate needs to cover everything an employer would otherwise fund — 12% super, paid annual and sick leave, and public holidays — plus your own tools, insurance and unpaid time between jobs. That's why a sustainable tradie day rate sits well above an equivalent employee's daily wage.
How much tax should a subcontractor set aside from each invoice?
As a rough guide, set aside 25–30% of your taxable income (billings minus business expenses) to cover income tax and the Medicare levy, more again if you're a high earner. This calculator shows your exact effective tax rate based on current ATO brackets for your own numbers.
Does this calculator include GST on my invoices?
No — this tool focuses purely on subby take home pay after income tax and the Medicare levy, not GST collection. If you're GST-registered, remember the 10% you add to invoices belongs to the ATO and isn't part of your real income; track it separately via your BAS.
What business expenses can a subcontractor claim against a day rate?
Typical deductible costs include tools and equipment, ute running costs and fuel, trade insurance, licences and registrations, and protective gear. Estimate these as a percentage of your gross billings to see how they shrink your taxable income and, in turn, your tax bill.
Does this work if I trade through a company instead of as a sole trader?
No — the calculator assumes you invoice under your own ABN as a sole trader, taxed at individual marginal rates, which covers most subbies. If you operate through a company or trust structure, your tax treatment is different and this figure won't be accurate.
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Written and verified by Nirbhay Tripathi
Last updated 18 August 2026
All rates on this page are verified againstATO — Tax rates, Australian residents, ATO — Medicare levy, ATO — Super guarantee percentageon 18 August 2026. See our methodology for the full update calendar.