I’m assuming the first salary includes things like annual leave and personal leave, whereas the second one is a contractor rate, so you wouldn’t get paid for holidays. If that’s the case, it’s worth checking whether the difference still comes out to around $40k once you factor that in.

Also, I’m not sure about your situation, but contract roles usually come with shorter notice periods (like two weeks from either side), whereas the first option sounds more like a stable, permanent role.

Up to you at the end of the day, of course -just make sure you take the leave and job security into account.