See whether contracting could earn you more than employment

Examples include professional indemnity, public liability, cyber, or income protection.

Insurance costs vary based on your profession, turnover, claims history, required cover, and risk profile. Use the prompt below with your preferred AI tool to generate a planning estimate, then enter the annual amount in the insurance field.

Copy ready AI prompt to help you get an estimate:

I am an Australian sole trader / contractor and want a planning estimate for my likely annual business insurance costs.

Please provide:

1. The main types of insurance I may need
2. Which cover types are commonly recommended vs optional
3. A realistic low, mid, and high annual premium estimate in AUD
4. The key assumptions driving the estimate
5. What information would change the quote materially
6. A short summary I can use for budgeting

My details:

• Profession / service type: [INSERT PROFESSION]
• Industry: [INSERT INDUSTRY]
• Business structure: [sole trader / company]
• State or territory: [INSERT STATE]
• Annual revenue: [INSERT REVENUE]
• Expected billable days per year: [INSERT DAYS]
• Number of staff: [INSERT NUMBER OR 0]
• Do I visit client sites: [yes / no]
• Do clients visit me: [yes / no]
• Do I give professional advice: [yes / no]
• Do I handle sensitive client or financial data: [yes / no]
• Do I need cyber cover: [yes / no / unsure]
• Do contracts require public liability or professional indemnity: [yes / no / unsure]
• Preferred public liability cover limit: [e.g. $5m / $10m / unsure]
• Preferred professional indemnity cover limit: [e.g. $1m / $2m / unsure]
• Equipment value to insure: [INSERT AMOUNT OR N/A]
• Claims history: [none / brief details]
• Other risk factors: [INSERT ANYTHING RELEVANT]

Important:

• Assume this is for Australia
• Do not give legal or financial advice
• Present this as a planning estimate only, not a formal quote
• Where possible, explain which insurance types are commonly relevant for someone in my situation

More info on business insurance can be found here.

Examples include software, accounting fees, equipment, memberships, internet, training, and workspace costs.

Copy ready AI prompt to help you get an estimate:

I am an Australian contractor / sole trader and want to estimate my likely annual business operating costs (excluding insurance, tax and super).

Please estimate realistic annual business costs in AUD based on my situation.

Provide:

1. A list of the most common annual business costs I should expect
2. A realistic low, mid, and high annual cost estimate
3. A breakdown by category
4. Which costs are essential vs optional
5. A simple annual total estimate for budgeting
6. Any costs that new freelancers commonly forget

My business details:

• Profession / service type: [INSERT PROFESSION]
• Industry: [INSERT INDUSTRY]
• Business structure: [sole trader / company]
• State or territory: [INSERT STATE]
• Annual revenue: [INSERT REVENUE]
• Expected billable days per year: [INSERT DAYS]
• Number of staff: [INSERT NUMBER OR 0]
• Work location: [home office / co-working / rented office / mobile / client sites]
• Equipment required: [e.g. laptop, tools, cameras, etc]
• Software used: [e.g. accounting software, design software, CRM]
• Marketing approach: [none / website / ads / networking / social media]
• Professional memberships or licences: [INSERT OR NONE]
• Travel required: [none / occasional / frequent]
• Training or certification needs: [INSERT OR NONE]

Important:

• Assume this is for Australia
• Provide estimates for a small independent contractor
• Present results as planning estimates only

More info on business costs and what is deductible can be found here.

This calculator is a guide only. It compares estimated annual pre tax income. It excludes personal income tax, GST, payroll arrangements, and any industry specific compliance costs.
Talk to our partner AUPOD if you need any help setting up.