Tax Refund Estimator

Your employer takes tax out of every pay using the ATO's withholding tables. Those tables assume you earn the same all year and claim no deductions, so most employees have a little more withheld than they end up owing.

At tax time the ATO works out the tax you actually owe on your taxable income, which is all your income minus your deductions. It adds up income tax at the resident rates less the low income tax offset, the 2% Medicare levy, the Medicare levy surcharge if it applies, and any compulsory HECS/HELP repayment.

If more was withheld than you owe, the difference comes back as a refund. If less was withheld, you get a bill. Your salary and the tax withheld are both on your income statement in myGov, and the ATO pre-fills them into your return once your employer marks it "tax ready", usually by 14 July.

The 2025-26 return (1 July 2025 to 30 June 2026) uses these rates. The cut to 15% on the first bracket started on 1 July 2026, so it shows up in next year's return, not this one.

• $0 to $18,200: nil
• $18,201 to $45,000: 16c for each $1 over $18,200
• $45,001 to $135,000: $4,288 plus 30c for each $1 over $45,000
• $135,001 to $190,000: $31,288 plus 37c for each $1 over $135,000
• Over $190,000: $51,638 plus 45c for each $1 over $190,000
• Plus the 2% Medicare levy, and the low income tax offset of up to $700 if your taxable income is under $66,667

A deduction doesn't come back dollar for dollar. It lowers your taxable income, so it saves you your marginal tax rate. On $83,300 that's 30% plus the 2% Medicare levy, so the $1,700 of deductions in the example above saves $544. If you earn between $18,200 and $45,000, the same $1,700 saves about $306.

You can claim costs you paid yourself that relate directly to earning your income, and you need a record of each one. Common claims:

• Working from home at the fixed rate of 70c an hour, with a record of the actual hours you worked from home (a timesheet, roster or diary)
• Tools, equipment and a laptop or desk used for work (items over $300 are claimed over several years)
• Uniforms with your employer's logo, protective clothing and their laundry
• Work travel between workplaces or to clients (not your normal commute)
• Union and professional fees, self-education related to your current job, and last year's tax agent fee
• Donations of $2 or more to registered charities (DGRs)

A bill usually means not enough tax was taken out during the year. The common causes:

• HECS/HELP not withheld. From 2025-26 you repay 15c for each dollar over $67,000. On a taxable income of $84,000 that's $2,550. If you didn't tick the HELP box on your tax file number declaration, the example above turns an $832 refund into a $1,718 bill.
• Two jobs at once. If both employers apply the tax-free threshold, each withholds too little.
• Income with no tax taken out, such as bank interest, a side business or gig work.
• No private hospital cover. Singles earning over $101,000 without it pay the Medicare levy surcharge of 1% to 1.5% of their income.

If you lodge yourself, your 2025-26 return is due by 31 October 2026. If you use a registered tax agent and you're on their books before 31 October, you usually have until the following May.

The ATO says most returns lodged online through myGov are processed in about two weeks. If you owe money, the bill is usually due on 21 November when you lodge yourself.

• Income tax calculator: tax, Medicare and your marginal rate for any year
• HECS calculator: yearly repayments and when your debt is paid off
• Take-home pay calculator: what lands in your account each pay this year
• Tax cut calculator: what the 2026-27 cut to 15% is worth in next year's return