Find out how much you could get back from the ATO. Toggle between 2025-26 (16% second bracket) and 2026-27 (15% second bracket). Includes LITO, Medicare Levy + MLS, HELP/HECS, and occupation-aware deduction prompts.
PAYG vs liabilityDeductions promptsMedicare levy + MLS
01 —INPUTS
2025-26 is the return being lodged now. 2026-27 is the year in progress.
Step 1 · Your income
Total salary/wages before tax. From your payslip YTD gross or Payment Summary.
Annualises the ATO Schedule 1 payroll amount, including per-pay rounding.
Step 2 · Your work
Used only to surface typical deductions for your role — no auto-fill.
Step 3 · Your deductions
Records required for each item; see the ATO D1–D15 deduction categories.
Step 4 · Your situation
Income-test add-backs (optional)
These do not raise taxable income, but the ATO adds them back for HELP and MLS tests.
Enter your gross income to see your estimated refund.
How your refund is calculated
Your tax refund is the difference between the tax already paid (withheld from your pay throughout the year) and the tax you actually owe based on your taxable income.
Core relationship
Taxable income = Gross income − Deductions
If your employer withheld more tax than you owe (common if you have deductions), you get a refund. If they withheld less, you'll owe money.
Common deductions that increase your refund
Most workers can claim these deductions:
→Work from home — $0.70 per hour using the fixed rate method, or claim actual expenses.
→Car and travel — Cents-per-km method (88c/km up to 5,000km) or logbook method for work-related travel.
→Uniform and clothing — Occupation-specific clothing, protective gear, or clothing with your employer's logo.
→Self-education — Courses, seminars, and study materials directly related to your current job.
→Tools and equipment — Items under $300 can be claimed in full; items over $300 are depreciated.
Substantiation rule
You must have spent the money yourself, it must relate to earning your income, and you need records to prove it.
PAYG withholding — why the refund exists
How PAYG withholding creates the refund
Your employer withholds tax from each pay using ATO PAYG schedules. The amount depends on pay frequency and declarations such as the tax-free threshold, study-loan debt, tax offsets and Medicare variations. When you do not enter the exact amount, this estimator applies the ATO Schedule 1 formula to your selected pay cycle and, where relevant, Schedule 8 study-loan withholding. The difference between withholding and final liability is your refund or amount payable.
Over-withholding is common because PAYG tables don't account for work-related deductions, charitable donations, salary sacrifice setups, or income variability (e.g. starting a new job mid-year). Under-withholding is rare for single-job employees but common for: people with a second job who haven't ticked "No tax-free threshold" on the second TFN declaration; those receiving allowances or commissions reported separately from base salary; ABN income or share-trading gains with no withholding; and HELP/HECS holders whose withholding hasn't caught up to a recent pay rise.
Refund mechanic
refund = PAYG withheld − (income tax + Medicare levy + MLS + HELP repayment − offsets)
A common misunderstanding: deductions don't directly create the refund — they reduce taxable income, which reduces the calculated tax liability, which means the PAYG withheld already exceeds the new liability. A $1,000 deduction at a 32% marginal rate (30% + 2% Medicare) increases refund by $320, not $1,000.
2025-26 brackets, offsets, levies
2025-26 ATO brackets, LITO, Medicare, MLS, HELP
Resident income tax brackets
Taxable income
Tax on this income
$0 – $18,200
Nil
$18,201 – $45,000
$0 + 16¢ for each $1 over $18,200
$45,001 – $135,000
$4,288 + 30¢ for each $1 over $45,000
$135,001 – $190,000
$31,288 + 37¢ for each $1 over $135,000
$190,001+
$51,638 + 45¢ for each $1 over $190,000
Low Income Tax Offset (LITO)
Maximum LITO is $700 for taxable income up to $37,500. It tapers to $325 at $45,000, then reaches zero around $66,667. LITO is non-refundable — it reduces income tax to zero but cannot create a refund standalone.
Medicare Levy (2%) and Medicare Levy Surcharge (MLS)
Medicare Levy is 2% of taxable income for most residents. Low-income exemption thresholds apply (full exemption below $28,011 single for 2025-26). MLS is an additional 1-1.5% if you don't hold appropriate private hospital cover and income exceeds the thresholds:
Tier
Single income
Family income
MLS rate
Base
$0 – $101,000
$0 – $202,000
0%
Tier 1
$101,001 – $118,000
$202,001 – $236,000
1%
Tier 2
$118,001 – $158,000
$236,001 – $316,000
1.25%
Tier 3
$158,001+
$316,001+
1.5%
Family thresholds add $1,500 for each dependent child after the first. "Income for MLS purposes" includes taxable income, reportable fringe benefits, reportable super contributions and net investment losses — so salary-sacrifice into super does not necessarily reduce MLS exposure even when it reduces taxable income.
HELP / HECS repayment thresholds 2025-26
Repayment income
Marginal repayment rate
$0 – $67,000
No repayment
$67,001 – $125,000
15¢ for each $1 over $67,000 (marginal)
$125,001 – $179,285
$8,700 + 17¢ for each $1 over $125,000 (marginal)
$179,286+
10% of total repayment income (flat — replaces the marginal calculation)
Repayment income = taxable income + reportable fringe benefits + reportable super contributions + net investment losses + exempt foreign employment income. Salary-sacrificing into super doesn't lower your HELP repayment — a common source of unexpected year-end HELP bills.
Worked examples — 3 wage bands
Worked examples: $50k / $90k / $150k
$50,000 — early career
→Gross income: $50,000.00
→Deductions: $1,200.00
→Taxable income: $48,800.00
→Income tax before LITO: $5,428.00
→LITO applied: $268.00
→Medicare levy: $976.00
→Total tax payable: $6,136.00
→Withholding estimate: $6,760.00
→Estimated refund: $624.00
$90,000 — mid career + HELP
→Gross income: $90,000.00
→Deductions: $3,500.00
→Taxable income: $86,500.00
→Income tax before LITO: $16,738.00
→LITO applied: $0.00
→Medicare levy: $1,730.00
→HELP repayment: $2,925.00
→Total tax payable: $21,393.00
→Withholding estimate: $23,220.00
→Estimated refund: $1,827.00
$150,000 — senior, no PHI
→Gross income: $150,000.00
→Deductions: $4,800.00
→Taxable income: $145,200.00
→Income tax before LITO: $35,062.00
→LITO applied: $0.00
→Medicare levy: $2,904.00
→MLS: $1,815.00
→Total tax payable: $39,781.00
→Withholding estimate: $39,884.00
→Estimated refund: $103.00
These examples are generated by the same 2025-26 engine as the calculator, using fortnightly ATO payroll schedules by default. Withholding remains a planning estimate for one regular job; use the exact income-statement amount for a lodgement-grade comparison.
Common pre-lodgement traps
Pre-lodgement traps that reduce or delay your refund
→Lodging before STP finalisation — Most employers finalise STP between 14 July and 31 July. Lodging before finalisation means you're working from draft data — figures may change, triggering an automatic ATO amendment a few weeks later. Wait for the green tick in myGov income statements.
→Estimating WFH hours — The ATO has explicitly flagged that estimates are not acceptable for fixed-rate WFH. Use actual hours from your calendar, diary, or time-tracking app. See the WFH calculator for substantiation requirements.
→Double-claiming reimbursed expenses — If your employer reimbursed an item (full or partial), exclude the reimbursed portion from your deduction. Common with phone, internet, professional memberships, and conference travel.
→Claiming travel from home to work — Standard commuting is not deductible (TR 95/34). Travel between two work sites, between jobs, or carrying bulky tools is deductible. The ATO targets car claims in audit; logbook beats cents-per-km if you regularly exceed 5,000 km.
→Forgetting investment income pre-fill — Bank interest, dividends, managed-fund distributions, and crypto trades flow through pre-fill but pre-fill is incomplete until ~mid-August. Lodging early often means a missing $100 of interest that triggers an amendment.
→Spouse / dependent details missing — MLS, family payments, and senior offsets depend on spouse income and dependent count. Missing or wrong spouse income inflates MLS or reduces SAPTO entitlement.
myTax pre-fill loads progressively from early July through mid-August. Most refund delays come from lodging before pre-fill completes and the ATO holding the return until reconciliation finishes. If you have a tax agent, you typically lodge later (Oct–Mar window) and avoid the early-window mismatches entirely.
FAQ
When will I get my tax refund?
If you lodge online through myTax, most refunds are issued within 2 weeks (the ATO's stated service standard is 12 business days). Paper returns take 10-12 weeks. The ATO can pause processing for verification if your claim diverges materially from prior-year patterns, your employer hasn't finalised STP reporting, or HELP/Centrelink balances are still being reconciled. You can track status via myGov → ATO → Manage tax returns.
Why is my refund different from last year?
Three factors usually drive the swing: income (pay rise, bonus, second job — all bump you toward higher brackets and reduce refund), deductions (fewer claimable expenses or smaller WFH hours after returning to office cuts the refund), and tax withheld (a new employer may use a default tax code that under-withholds, leaving less to refund). Side-hustle income via ABN is the biggest single cause of unexpected tax bills — there's no withholding on gig/freelance earnings, so you owe rather than receive.
What if I owe money instead of getting a refund?
Pay by the due date shown on your notice of assessment. The ATO may apply general interest charge to overdue tax. If you can't pay in full, request a payment plan through ATO online services or speak with your tax agent before the due date; the terms depend on your circumstances and debt.
What deductions can I claim?
Work-related expenses that you paid for yourself, that directly relate to earning your income, and for which you have evidence. Common claims: work from home (70¢/hour fixed rate or actual-cost), car (88¢/km up to 5,000 km, or logbook), uniforms, self-education with sufficient nexus to current income, professional memberships, donations to DGRs, and tools/equipment. The $300 work-expense threshold is not a blanket no-records deduction: you must still be able to show how you incurred and calculated the claim.
Do I need my Payment Summary to use this calculator?
No. If you leave tax withheld blank, choose your usual pay cycle and the calculator annualises the ATO Schedule 1 payroll amount for 2025-26, including per-pay rounding. If your employer knew about a study loan, it also estimates Schedule 8 withholding and blends the two schedules that applied during 2025-26. The estimate assumes one regular job, the tax-free threshold, and no withholding variation or tax-offset declaration. For a tighter result, switch "I know my exact tax withheld" on and enter the amount from your tax-ready income statement in myGov.
What is the $1,000 instant tax deduction for 2026-27?
The Government proposed an instant deduction of up to $1,000 for eligible Australian residents who earn income from work from 2026-27. The measure remains subject to legislation. This estimator therefore leaves it off by default: switch to 2026-27 and opt in to model the proposal. The calculation compares the proposed amount only with itemised work-related expenses; donations and other deductions remain separate. See the Budget 2026-27 net impact calculator for the wider package.
How does the Low Income Tax Offset (LITO) affect my refund?
LITO is a non-refundable offset that reduces your tax payable. For 2025-26, the maximum is $700 up to $37,500, then it tapers to $325 at $45,000 and reaches zero around $66,667. The ATO calculates it automatically. Because it is non-refundable, LITO can reduce income tax to zero but cannot create a refund on its own. See the tax offsets calculator for wider offset modelling.
How do I avoid the Medicare Levy Surcharge (MLS)?
MLS applies in addition to the 2% Medicare Levy when income for MLS purposes exceeds $101,000 (single) or $202,000 (family base, plus $1,500 per dependent after the first). Rates then rise across the three tiers. Appropriate hospital cover can remove MLS for covered days; extras-only cover does not qualify. This estimator applies both single and family tiers and lets you include the reportable amounts used in the income test.
When does my HELP/HECS repayment kick in?
HELP and other study-loan repayments use repayment income, not salary alone. For 2025-26, compulsory repayments begin above $67,000; the marginal bands and top 10% cap are shown in the table below. Repayment income includes taxable income plus reportable fringe benefits, reportable super contributions and net investment losses. Employer withholding is reconciled at lodgement against the full-year calculation.
Why is my refund showing 'Under review' on myGov?
The ATO conducts automated risk reviews on a portion of returns. Triggers include: deductions materially above prior-year baseline or industry average (the ATO publishes occupation-level deduction benchmarks); rental property income with negative cash flow; capital gains involving crypto or unlisted assets; foreign income; first-year returns; or pre-fill data mismatches. Most reviews resolve within 4 weeks. Provide records if the ATO asks — they typically request the substantiation rather than denying outright. If your return is paused at the 4-week mark with no contact, lodging an enquiry via myGov chat or your tax agent usually accelerates it.
What can I claim without receipts?
Limited written-evidence exceptions exist, but none is a free automatic deduction. If total work expenses are $300 or less, you still need to show how you incurred and calculated them. Laundry of eligible work clothing has a separate written-evidence threshold, and the cents-per-kilometre method still needs a reasonable basis for work kilometres. For 2026-27, the separate $1,000 proposal remains an explicit opt-in while subject to legislation.
EOFY refund estimator for 2025-26 and 2026-27 resident individuals. Applies year-specific LITO, Medicare levy, single/family MLS tiers, HELP repayment thresholds, income-test add-backs and occupation-aware deduction prompts. Estimated withholding annualises ATO Schedule 1 and Schedule 8 for the selected pay cycle, assuming one regular job and common declarations; enter the exact income-statement amount for a tighter result. Does not model private health rebate adjustments, foreign income, offsets beyond LITO, or prior-year amounts.