Freelancing in Australia has become so commonplace that in 2024, there were 1.1 million Australians who worked as independent contractors. If you’re a freelance designer, developer, consultant, or other creative, you’re operating a business and therefore need to follow the same structural requirements, tax rules, and payment processes as any other enterprise. Below, we’ll explain how to become a freelancer in Australia, including how to register your business, set rates that enable profit, choose payment methods that sync with your clients, manage taxes, and keep records without encountering surprises.

What’s in this article?

• How do you become a freelancer in Australia?
  
• How much should you charge as a freelancer?
  
• What are the best payment methods for freelancers in Australia?
  
• How do you accept payment as a freelancer?
  
• How do taxes and accounting work for Australian freelancers?
  
• How Stripe Tax can help
  

How do you become a freelancer in Australia?

Getting started as a freelancer in Australia requires a few steps to set yourself up as a proper business. If you’re working solo, the business requirements are fairly simple.

Here’s what that looks like in practice.

Choose your business structure

Many freelancers choose to register as sole traders. Doing so is inexpensive and quick, and it gives you full control. The downside is that you’re personally liable for any debts since you and your business are legally the same. That’s usually fine for freelancers who are just starting out. But if your income grows substantially or you take on higher-risk work, you could switch to a structure such as a proprietary limited for limited liability and different tax treatment.

Get an Australian Business Number (ABN)

Many businesses need an ABN, but it’s not compulsory across the board. Without one, other businesses must withhold 47% tax from any payments they make to you. You can apply for a free ABN online through the Australian Business Register. This number is how the government and clients identify your business. You’ll need it for invoicing, claiming deductions, and goods and services tax (GST) registration.

If you’re trading under a name other than your own, you’ll also need to register that name with the Australian Securities & Investments Commission, which costs 45 Australian dollars (AUD) for 1 year.

Set up your business basics

Open a separate bank account for your freelance income and expenses to keep your records clean and simplify tax reporting. You might also need insurance, such as professional indemnity coverage, depending on your industry.

Clarify your offering and market

Create a simple online presence with your ABN, portfolio, and contact details. Clear positioning helps clients find you: what do you do and who is it for? Perhaps you’re a copywriter for small Australian fashion brands, a web developer who specializes in startups, or an accountant for sole traders.

Then, focus on visibility. Register your business on local directories and join Australian freelance networks or local chambers of commerce. Digital professionals often find work through Seek’s contract listings or LinkedIn.

Now that you’ve handled the admin, you’re officially open for business. It’s time to find clients and start booking work.

How much should you charge as a freelancer?

The amount you charge your customers reflects your expertise, independence, and the risk you take on as a sole trader. Setting baselines and benchmarks and regularly revisiting them will help you charge rates that serve your needs and match market realities.

Calculate your baseline

Work backward from what you want to earn in a year. If you were making 80,000 AUD as a salaried employee, you’d need to make more income than that as a freelancer to maintain your lifestyle. As a freelancer, you’re covering superannuation, time off, insurance, and the unpaid hours you spend pitching and invoicing.

Next, calculate your billable hours: the hours you can actually charge for. These don’t include admin, client management, holidays, or downtime. Divide your target income by the number of hours you expect to bill. For example, if you expect to bill 1,000 hours and your target income is 100,000 AUD per year, you’d need to bill 100 AUD per hour. That’s your floor hourly rate: the minimum you can charge before you’re losing money.

Match the Australian market

Knowing what others charge helps you position yourself. As of 2025, freelancers in these roles can expect to charge the following:

• Writers and editors: 45–140 AUD per hour

• Graphic designers: 45–150 AUD per hour

• Web developers: 45–150+ AUD per hour

Hourly rates for freelancers can vary widely based on your experience, location, and clients. If you specialize in high-demand industries, such as fintech, AI, and sustainability consulting, you might command the upper range or higher. Market rates in Australia also differ by region: freelancers in Sydney and Melbourne often charge higher rates due to demand and cost of living, while regional operators might need to adjust pricing to match local economies.

Pick the right pricing model

Hourly billing or day rates work when projects are open-ended. But when the scope is fixed, project-based pricing can reward efficiency. If you charge 2,000 AUD for a project based on the expectation that it’ll take about 20 hours but then you finish it in 15, that’s a win for you. Retainers, a set monthly fee for ongoing work, offer stability for long-term clients.

Creating a basic client service agreement is helpful here. You can modify it for each new client to define your scope, fees, and payment terms. However you charge, clarify what’s included and what triggers a new quote. Many Australian freelancers standardize this in their client service agreements to avoid scope creep, which is the uncontrolled expansion of a project’s scope beyond its initial, agreed goals and requirements.

Revisit your rates

Revisit your pricing every 6–12 months. Costs can rise, skills deepen, and demand can shift. A full schedule and little rate resistance from new clients signal that it’s probably time to increase your prices.

What are the best payment methods for freelancers in Australia?

In Australia, payments move fast due to modern banking infrastructure, and clients typically expect easy digital options. The best system for you depends on who’s paying you and where they’re located.

Electronic funds transfers (EFTs)

EFT payments are familiar in Australia. Share your Bank State Branch code and account number or PayID (linked to your phone or email), and funds usually settle within seconds, even on weekends. Always include clear payment instructions and an invoice number so you can easily match deposits.

Card payments

If you work with international clients or prefer quick online payments, accepting debit and credit cards makes sense. You can send a secure payment link or invoice a client directly, and they pay you via the card of their choice. Payment providers like Stripe can automatically convert foreign currencies and transfer funds to your Australian account.

Marketplaces

If you use online freelance marketplaces like Upwork, payments go through their escrow systems.

How do you accept payment as a freelancer?

For Australian freelancers, having a clean process for handling payments—from invoicing to follow-up—will help you minimize misunderstandings and errors.

Send clear, compliant invoices

Every invoice should include:

• Your business name and ABN

• The client’s name

• The date and invoice number

• A description of services, the total due, and your payment details

If you’re registered for GST, mark it as a “Tax Invoice” and show the GST amount separately. If not, write “No GST charged.” The Australian Taxation Office (ATO) requires these details for invoices over $1,000.

Set firm payment terms

Clarify expectations in your contracts and on your invoices:

• Payment due date: The standard in Australia is typically 7, 14, or 30 days from the invoice date.

• Late fees: You might choose to add a note such as, “Overdue accounts might incur a 2% monthly charge.”

• Payment options: Share your bank details or link to your online payment page.

You might decide to put an up-front deposit system in place, especially with new clients. It can save you time and confirm the client’s commitment.

Follow up on receivables

Mark due dates in a calendar or your accounting software. If payment doesn’t arrive on time, follow up quickly and politely. Often, it’s just a simple mistake, such as a missed email.

How do taxes and accounting work for Australian freelancers?

Freelancers in Australia operate as small businesses, which means they’re responsible for their own accounting, income tax, GST, and superannuation. Getting your systems right early keeps your freelance business compliant and your finances clear.

Income tax

If you’re a sole trader, your freelance income is taxed as personal income using your individual tax file number. You report your earnings minus business deductions in your annual tax return. There’s no separate “freelance tax”; you’re simply taxed at standard individual marginal rates.

Throughout the year, put aside about 25%–30% of your income in a separate account for your tax bill. Once your earnings grow, the ATO might place you on pay as you go (PAYG) installments, which require you to prepay tax quarterly. Lodging deadlines matter: the financial year ends June 30, and individual returns are due by October 31 (or later if you use an accountant).

GST

You must register for GST when your annual turnover reaches 75,000 AUD. From that point, you’ll charge 10% GST on invoices to Australian clients. You’ll have to lodge business activity statements, usually quarterly, to remit that GST.

If your turnover is under the threshold, GST registration is optional. Some freelancers register early so they can claim back GST on business expenses, while others wait to avoid the extra admin. If you work primarily with overseas clients, those services are often GST-free under Australian tax law.

Deductions and recordkeeping

Freelancers can deduct legitimate business expenses such as software, equipment, internet, office supplies, travel, insurance, and part of home office costs. The ATO requires businesses to keep digital copies of every invoice and payment record for at least five years. Reconciling payments monthly keeps your books clean and makes your life easier at tax time.

Many freelancers use cloud accounting software like Xero or MYOB, which syncs with your bank account to automatically track income and expenses.

Superannuation and compliance

Sole traders aren’t required to pay super, but voluntary contributions are tax-deductible and smart for long-term planning.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.