How is my tax refund calculated?

Your refund is the tax withheld from your pay during the year minus your actual tax for the year. Your actual tax is the income tax on your taxable income (income minus deductions), less offsets like the Low Income Tax Offset, plus the 2% Medicare levy and any HECS-HELP repayment. If more was withheld than you owe, you get a refund; if less, you get a bill.

When can I lodge my tax return for 2025-26?

You can lodge from 1 July 2026. Many people wait until late July, when the ATO pre-fills your income, bank interest, private health and other details from employers and institutions — lodging too early before pre-fill is complete is a common cause of mistakes and amendments. The deadline to lodge yourself is 31 October 2026.

How can I increase my tax refund?

Claim every deduction you're genuinely entitled to and have records for — work-from-home hours, work-related expenses, donations, income protection insurance, and the cost of managing your tax affairs. Each $1,000 of deductions is worth your marginal rate (for example, about $320 at a 32% rate). Don't claim things you can't substantiate.

Tax Refund Calculator

Estimate your 2025-26 tax refund — or bill — before you lodge. Enter your income, the tax already withheld, and your deductions to see what you'll get back.

Last verified: 5 May 2026

How much tax will I get back?

Your refund is simply the tax withheld from your pay minus your actual tax for the year. Deductions lower your taxable income, so they grow your refund — each $1,000 claimed is worth your marginal rate. A HECS debt or too-little withholding can flip it into a bill. Source: ATO.

Worked example. $85,000 income, $18,000 withheld, $2,000 deductions, no HECS: tax + Medicare for the year is about $16,600, so you'd get roughly a $1,400 refund. Add a HECS debt and it can become a bill instead.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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