A placement fee calculator, with super and GST.
Put in the salary, how super is paid and your fee, and see the first-year package, the fee, the GST and the total to invoice. Then read what usually counts in a package, and where the arguments over fees start.
01Work out a fee
Change any number and the fee updates. Nothing you type leaves your browser.
A guide for working out a fee, not tax or legal advice. Your terms of business decide what the fee is charged on.
02What counts in the package
Most fee disputes start with what “salary” meant. Define the package in your terms, and work the fee out on the same basis every time. A first-year package usually includes:
- Base salary, for a full year, even if the candidate starts part-way through one.
- Superannuation, if it’s paid on top of the salary. If the salary is quoted “including super”, it’s already in.
- Bonus and commission the candidate is offered or expected to earn in the first year.
- Allowances and benefits, such as a car or car allowance, phone, or a salary-packaged benefit, at their annual value.
For a part-time role, agree in your terms whether the fee is on the actual salary or the full-time equivalent.
03A worked example
A candidate is offered A$90,000 a year plus super, with no bonus, and your fee is 20%.
- Package: A$90,000 + 12% super (A$10,800) = A$100,800
- Fee: 20% of A$100,800 = A$20,160
- GST: 10% of A$20,160 = A$2,016
- Invoice: A$22,176
Had the same A$90,000 been quoted including super, the fee would be A$18,000 plus GST: A$2,160 less. That gap is why the definition matters.
04GST on placement fees
If your agency is registered for GST, add 10% to the fee and show it on a tax invoice. Agencies with a GST turnover under A$75,000 don’t have to register, and an agency that isn’t registered doesn’t charge GST. Quote fees “plus GST” in your terms, so a client is never unsure which figure they agreed to. Check your own position with your accountant or the ATO.
05Put it in your terms
The fee, what the package includes, when you invoice and when it’s due all belong in your terms of business, agreed before you send a candidate. Our terms of business template has clauses for each, and the terms of business checklist goes through what each clause should answer.
Each client’s fee, in their terms.
Koho fills in each client’s fee, payment days and guarantee in your own terms of business, sends them to sign online, and keeps a full record of every signature.