How your tax refund is worked out
- Taxable income = salary + other income − deductions.
- Tax owed = income tax at that year's rates, minus the low income tax offset, plus the 2% Medicare levy and any HELP repayment.
- Refund = tax already withheld − tax owed. A negative number means you owe the ATO.
Tax rates for 2025–26 and 2026–27
| Taxable income | 2025–26 (your current return) | 2026–27 |
|---|---|---|
| $0 – $18,200 | Nil | Nil |
| $18,201 – $45,000 | 16c per $1 over $18,200 | 15c per $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c per $1 over $45,000 | $4,020 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c per $1 over $135,000 | $31,020 + 37c per $1 over $135,000 |
| $190,001+ | $51,638 + 45c per $1 over $190,000 | $51,370 + 45c per $1 over $190,000 |
HELP repayments start at $67,000 for 2025–26 and $69,528 for 2026–27. See the full table on our HECS repayment calculator.
How to get a bigger refund, legally
- Claim every work-related expense you paid for yourself and have records for.
- Claim working-from-home costs using the ATO's fixed-rate method, which requires a record of hours worked at home.
- Include donations of $2 or more to registered charities.
- Claim the cost of a tax agent from last year.
- Don't lodge too early: wait until your income statement is marked "tax ready", so nothing is missed.
Example, 2025–26: earning $80,000 with $2,000 of deductions and $16,000 tax withheld. Taxable income is $78,000, the tax owed is $15,748 including Medicare, so the estimated refund is $252.
Key tax return dates
| Date | What happens |
|---|---|
| 1 July 2026 | 2025–26 tax returns can be lodged |
| Mid to late July | Most income statements are "tax ready" in myGov |
| 31 October 2026 | Deadline if you lodge your own 2025–26 return |
| Usually May 2027 | Later deadline for most people using a registered tax agent |
Common questions
When is the 2026 tax return due?
If you lodge your own 2025–26 tax return, it's due by 31 October 2026. If you use a registered tax agent and are on their client list before 31 October, you usually get more time, often until May 2027.
How is my tax refund worked out?
Your refund is the tax your employer withheld during the year minus the tax you actually owe. Your actual tax depends on your taxable income (income minus deductions), the tax rates for that year, the Medicare levy and any HELP repayment. If more was withheld than you owe, you get the difference back.
Why did the tax rate change between 2025–26 and 2026–27?
The rate on income between $18,201 and $45,000 dropped from 16% to 15% on 1 July 2026. Your 2025–26 return still uses the 16% rate. The 15% rate applies to the 2026–27 return you'll lodge from July 2027.
What deductions can I claim?
Work-related expenses you paid yourself and weren't reimbursed for, such as some work travel, tools, uniforms, home office costs and self-education linked to your job. You also need records. Donations to registered charities and the cost of managing your tax affairs are deductible too.
Why do I owe tax instead of getting a refund?
Common reasons are a second job where both employers applied the tax-free threshold, income with no tax withheld (like interest, rent or freelance work), or a HELP debt your employer didn't know about.
Where do I find my tax withheld?
In your income statement in myGov, under the ATO section. It's marked 'tax ready' once your employer has finalised it, usually by 14 July.
Is this calculator the same as the ATO's?
It uses the same official rates, but it's simpler. It doesn't include the Medicare levy surcharge, family thresholds, offsets other than the low income tax offset, or franking credits. Your tax return in myGov gives the final figure.
Sources
This is an estimate for Australian residents. It doesn't include the Medicare levy surcharge, private health insurance rebate adjustments, franking credits, or offsets other than the low income tax offset. Your myGov tax return gives the official figure.