Agency Business Calculator

Understand how agencies structure rates and compare the three main contractor engagement models to see which gives you the best take-home pay.

Agency Business Structure

Configure the agency rates and margins to see how money flows from client to contractor

Client Company

$ per day
Including GST: $1,320
↓

Agency

%
Gross Income: $1,200
Margin Amount: $300
Buy Rate (exc GST): $900
↓

Contractor Models

Choose your engagement model below

PAYG Employee

Traditional employee arrangement

Gross Arrangements

Buy Rate $900
LAFHA
$
Extra Fees
%
Gross Before Super $900

Superannuation

Super Rate
%
Super Amount $108
Net After Super $792

Tax Deductions

Income Tax
$
HECS
$
Medicare Levy
$
Total PAYG Tax $290
Take Home Pay $502

PTY LTD Sub Contractor

Company-to-company arrangement

Invoice & GST

Buy Rate Invoice (inc GST) $990
GST Provision $90
Revenue (exc GST) $900

Business Provisions

Business Costs
$
Gross Before Provisions $808

Superannuation

Super Provision
$
Net After Super $713

Tax Provision

Tax Provision
$
Take Home Pay $513

Payroll Company

Third-party payroll service

Invoice & Fees

Buy Rate Invoice (inc GST) $990
GST Provision $90
Payroll Fee
%
Payroll Fee Amount $17.55
Payment Advance Fee
%
Advance Fee Amount $4.50
Gross Before Super $878

Superannuation

Super Rate
%
Super Amount $105
Net After Super $773

PAYG Tax

PAYG Tax
$
Take Home Pay $498

Take Home Pay Comparison

Compare the net benefits of each engagement model

PAYG Employee

$502
Pros: Simple, agency handles all compliance
Cons: Highest tax burden, limited deductions

PTY LTD

$513
Pros: Best take-home, tax flexibility
Cons: Complex compliance, business risk

Payroll Company

$498
Pros: Salary packaging, some tax benefits
Cons: Fees reduce take-home, compliance risk

Key Insights

  • PTY LTD offers the highest take-home pay at $513/day
  • PAYG is simplest but lowest net income due to tax implications
  • Payroll companies suitable for Canberra market and salary packaging needs
  • Consider compliance complexity vs financial benefits when choosing

How It Works

1

Set Agency Rates

Input the sell rate to client and agency margin to see the financial structure.

2

Compare Models

See how PAYG, PTY LTD, and Payroll Company arrangements affect your take-home pay.

3

Make Informed Decisions

Compare the pros and cons of each engagement model for your situation.

Agency Engagement Models Guide

Learn about the different ways to work with agencies and which model suits your situation best.

Read Our Guides →