Tax Refund Calculator
Your Tax Estimate
Without private health insurance, you may be liable for the Medicare Levy Surcharge (1-1.5%) if your income exceeds the threshold. This estimate does not include MLS.
Important Disclaimer
This calculator provides an estimate only and should not be considered tax advice. It uses the standard ATO individual income tax rates for the current financial year.
It does not account for all circumstances such as private health insurance surcharge, SAPTO, other offsets, or foreign income. Please consult a registered tax agent for personalised advice.
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Frequently Asked Questions
How is my tax refund calculated?
Your Australian tax refund equals the tax your employer withheld (shown on your payment summary) minus your actual tax liability. Tax liability is calculated by applying ATO tax brackets to your taxable income (gross income minus deductions): 0% on the first $18,200, 16% on $18,201–$45,000, 30% on $45,001–$135,000, 37% on $135,001–$190,000, and 45% on income above $190,000. The ATO then adds 2% Medicare levy, subtracts the Low Income Tax Offset (up to $700), and adds any compulsory HECS/HELP repayment. If the tax withheld exceeds your total liability, you receive a refund. If it falls short, you owe the difference. Source: ATO individual income tax rates (ato.gov.au).
What are common work-related deductions I can claim?
The most-claimed work-related tax deductions in Australia include: work-from-home expenses (70 cents per hour fixed rate for FY2024-25 onwards, or actual cost method), car expenses (88 cents per km up to 5,000 km, or logbook method), uniforms and protective clothing, tools and equipment under $300 (instant write-off), self-education related to current employment, union and professional association fees, and phone/internet work-use proportion. You need written records for all claims — the ATO requires receipts, invoices, or bank/credit card statements. Claims over $300 for clothing/laundry require written evidence. The average Australian claims approximately $3,000 in work-related deductions. Source: ATO (ato.gov.au).
When will I receive my tax refund?
If you lodge your Australian tax return electronically via myTax or through a registered tax agent, the ATO typically processes refunds within 2 weeks (14 business days). Paper lodgements take 10–12 weeks. Delays may occur if the ATO selects your return for review, if you have outstanding debts to government agencies (the ATO may offset your refund against these), or if your return has errors. Lodge early in July for the fastest processing — returns lodged in July-August are typically processed faster than those lodged closer to the 31 October deadline. Tax agents have extended deadlines (up to 15 May of the following year). Source: ATO lodgement program (ato.gov.au).
What if I owe money to the ATO?
If your actual tax liability exceeds the tax your employer withheld during the year, you will owe the ATO the difference. This commonly occurs when you have multiple income sources (two jobs, freelance income), significant investment income (dividends, capital gains, rental income), or your employer did not withhold enough tax. If you owe less than $100, you may not need to pay. For larger debts, you can set up a payment plan with the ATO — interest charges (currently the General Interest Charge rate) apply to overdue amounts. You can also request to vary your PAYG withholding for the following year so your employer withholds more tax each pay cycle. Source: ATO payment and lodgement (ato.gov.au).
Does HECS/HELP debt affect my tax refund?
Yes, HECS/HELP debt directly reduces your tax refund. If your repayment income (taxable income + net investment losses + reportable fringe benefits + reportable super contributions) exceeds the minimum threshold of $54,435 for FY2025-26, you must make a compulsory repayment. Repayment rates range from 1% to 10% of your total repayment income depending on the bracket — for example, at $85,000 income the rate is 4.5%, meaning a $3,825 compulsory repayment. This amount is added to your tax liability and will reduce your refund or increase what you owe. Voluntary repayments above your compulsory amount no longer receive a bonus discount (this was removed in 2017). Source: ATO study and training loan repayment thresholds (ato.gov.au).
What is the Low Income Tax Offset (LITO)?
The Low Income Tax Offset (LITO) is an automatic tax offset that reduces the tax payable for Australian residents earning up to $66,667 per year. For FY2025-26, the maximum offset is $700 for taxable incomes up to $37,500. It then reduces by 5 cents per dollar between $37,500 and $45,000 (to $325), then by 1.5 cents per dollar between $45,000 and $66,667 (to $0). You don't need to claim LITO — the ATO applies it automatically when it assesses your return. Combined with the tax-free threshold of $18,200, LITO means Australians earning up to $21,884 effectively pay no income tax at all. Source: ATO low income tax offset (ato.gov.au).