1. What is the Government Contract Rate Calculator?

The Government Contract Rate Calculator helps contractors determine their total hourly rate when working with Australian government entities, including base rate, GST, and superannuation components.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• Base Rate — Your base hourly rate before taxes and super
• GST — Goods and Services Tax component
• Super — Superannuation contribution

Explanation: This calculation provides the total hourly rate to charge government clients to cover all your costs and obligations.

3. Importance of Accurate Rate Calculation

Details: Proper rate calculation ensures you meet all tax obligations, superannuation requirements, and still maintain your desired income level when contracting with government entities.

4. Using the Calculator

Tips: Enter your base hourly rate in AUD, the GST amount in AUD, and superannuation amount in AUD. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current GST rate in Australia?
A: The GST rate is currently 10% of the taxable supply. This should be added to your base rate when invoicing government clients.

Q2: What's the current superannuation guarantee rate?
A: As of 2023, the super guarantee rate is 11% of ordinary time earnings, increasing to 11.5% from July 2024.

Q3: Should I include GST if I'm not registered?
A: No, if you're not registered for GST, you cannot charge it. Only include GST if you're registered.

Q4: Are there different rules for different government levels?
A: The basic calculation is similar, but specific contract requirements may vary between federal, state, and local government contracts.

Q5: How often should I review my rates?
A: Review your rates annually or whenever there are changes to tax rates, superannuation requirements, or your business costs.