Freelancing in Australia gives you control over your income, schedule, and clients — and for those with marketable skills, can generate $5,000–$20,000+ per month. The freelance market in Australia is large and growing, with businesses of all sizes regularly hiring freelance copywriters, designers, developers, accountants, marketers, and consultants.
High-Demand Freelance Skills in Australia
| Skill | Typical Freelance Rate |
|---|---|
| Software development (web, app) | $90–$200+/hr |
| UI/UX design | $75–$150/hr |
| Graphic design | $60–$120/hr |
| Copywriting / content writing | $50–$150/hr |
| SEO / digital marketing | $60–$150/hr |
| Video editing | $60–$130/hr |
| Bookkeeping | $55–$100/hr |
| Virtual assistant | $30–$60/hr |
| Photography | $80–$200/hr |
| Business consulting | $100–$350/hr |
How to Set Your Freelance Rate
A common approach for setting your freelance day rate:
- Take your target annual income (e.g., $120,000)
- Divide by billable days (typically 200–220 days if working full time, allowing for holidays, admin, and business development)
- Add 20–30% for non-billable time and business costs
- Add super equivalent (11.5%) — since no employer funds this
$120,000 ÷ 200 = $600/day = $75/hr (for an 8-hour day) Plus 25% overhead buffer = $93/hr as a minimum rate
Most experienced freelancers charge above this as they build reputation and referrals.
Setting Up to Freelance in Australia
1. Apply for an ABN
All freelancers in Australia need an ABN (Australian Business Number). Apply free at abr.gov.au. You can register as a sole trader (simplest) without setting up a company.
2. Decide on a business structure
- Sole trader — simplest, lowest cost, income reported on personal tax return
- Company (Pty Ltd) — more complex, better liability protection, may suit higher-income freelancers
- Most new freelancers start as sole traders and assess whether a company structure is warranted after 12+ months
3. Register for GST (if turnover exceeds $75,000/year)
If your annual gross income exceeds $75,000, you must register for GST and add 10% to your invoices. Lodge quarterly BAS statements and remit GST to the ATO.
4. Set up invoicing
Use accounting software (Xero, MYOB, or free options like Wave or Invoice Ninja) to issue professional invoices and track income/expenses.
5. Open a separate business bank account
Keep business income separate from personal finances for easier bookkeeping and tax management.
Where to Find Freelance Clients in Australia
| Platform | Best For |
|---|---|
| Professional services, consulting, B2B | |
| Upwork | All skill categories, global and Australian clients |
| Fiverr | Package-based services, design, writing |
| Freelancer.com | Technical and creative projects |
| PeoplePerHour | UK/AU market, hourly and project work |
| Direct outreach | The most effective long-term strategy |
| Referrals | Your most valuable source after initial clients |
Tax as a Freelancer in Australia
As a sole trader, you pay income tax on your net profit (revenue minus deductible expenses) at the same individual income tax rates as employed workers. Key points:
- No employer withholds tax — you pay through quarterly PAYG instalments (the ATO sets these after your first year)
- Deductible expenses include: home office, equipment, software, professional subscriptions, marketing, travel to clients, training
- You fund your own super — strongly consider contributing 11.5% of your income to a super fund
- Income averaging provisions exist for eligible individuals with fluctuating income
Consult a registered tax agent for advice specific to your situation.
Frequently Asked Questions
Do I need an ABN to freelance in Australia?
Yes — if you’re operating a business activity (which freelancing is), you need an ABN. Without an ABN, clients are required to withhold 47% of your payment and remit it to the ATO. Apply free at abr.gov.au.
How much tax do freelancers pay in Australia?
Freelancers pay income tax at individual marginal rates on their net income. On $80,000 net freelance income, tax (including Medicare levy) is approximately $17,668. Unlike employees, no employer withholds this — you pay quarterly instalments or on your annual return.
Is freelancing worth it financially?
Yes, for those with in-demand skills — particularly in technology, design, and professional services. The hourly rate premium over equivalent employed work (30–60%+ more) compensates for the absence of employer-funded leave and super. At high income levels ($200,000+), a company structure may provide tax advantages.
Related Guides
- Best Side Hustles in Australia
- Salary vs Hourly Rate Australia
- Software Engineer Salary Australia
- Average Salary Australia 2025–26
Tax and business structure information is general in nature. Consult a registered tax agent or business adviser for advice specific to your circumstances.