Agency Margin Calculator

Australian labour-hire. All rates ex-GST. Pick your state — it sets the WorkCover premium rate and payroll tax threshold/rate for you.

State / territory FY2025-26 defaults

Rates (ex-GST)

Client day rate — what you invoice the client

Contractor day rate — what you pay out

Fixed overheads — business-wide, not per contractor

Working pattern

Number of contractors — on these rates; fixed costs spread across all

Days per week — per contractor

Weeks per month — for the monthly view

Working weeks per year

GST rate — federal, 10%

On-costs — tick the ones you carry

Super is federal (12%). WorkCover auto-fills the indicative average rate for your state — set your actual industry rate. Leave items unticked if the contractor's rate is genuinely inclusive of them (their cost, not yours). Basis: % of contractor pay, % of client rev, or flat $ per day/week/year.

Payroll tax —

State threshold: —

Marginal rate: —

Include payroll tax in my costs

Total annual taxable wages / contractor payments — all workers you engage, Australia-wide (for grouping)

—

Payroll tax only applies once your total Australian wages cross the state threshold — most single-placement operators are under it. Labour-hire payment rules, grouping and contractor exemptions are complex; this is an indicative marginal estimate only. Confirm with your accountant / state revenue office.

Per contractor — fixed overhead spread across 1 head

Net profit / day

$150

Gross margin

12.0%

Markup on cost

13.6%

⚠️ Your total costs exceed what the client pays — this is a loss.

Gross spread / day

$150

client − contractor

On-costs / day

super, WorkCover, etc.

Payroll tax / day

per contractor share

Fixed o/h / day

fixed ÷ headcount

Whole business — all contractors, fixed cost applied once

Net profit / month

$3,240

Net profit / year

$36,000

Net / day

$150

Per-contractor projection

Period	Client	Contractor	On-costs	Payroll tax	Fixed o/h	Net profit

Business totals × 1 contractor

Period	Revenue	Contractor	On-costs	Payroll tax	Fixed o/h	Net profit

Fixed overhead is charged once per period no matter how many contractors — that's your operating leverage. Payroll tax is computed on your total wage bill against the state threshold, so it can switch on as you add heads.

Downside stress test best vs worst overhead

The risk isn't running 10 contractors — it's dropping back to 1–3 while carrying the same fixed overhead. This shows monthly business net at every headcount under a lean (best-case) and a high (worst-case) overhead, so you know how far the book can shrink before you're underwater.

Best-case overhead — lean / month

Worst-case overhead — high / month

Model up to how many contractors?

Contractors	Unit net / mo	Business net / mo @ best o/h	Business net / mo @ worst o/h

"Unit net / mo" is one contractor's monthly margin after variable costs but before fixed overhead. Business net subtracts the fixed overhead once. Green = profitable, red = you're subsidising fixed costs. Uses your current rates, on-costs and state.

GST reconciliation (per day)

Figures are indicative defaults for the latest financial year and are editable — WorkCover rates are scheme averages (your actual rate depends on industry classification and claims history); payroll tax thresholds/rates change each year. This is a planning tool, not financial or tax advice — confirm with your accountant and your state revenue office / WorkCover authority.