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Estimate your Australian tax refund or amount owing. Enter your income, tax withheld, deductions and franking credits for an instant ATO-based estimate — for both the current 2026–27 year and the 2025–26 year.
Updated: 4 August 2026 · Reviewed by Mohsin Iqbal · 13 min read
Income & Tax Withheld
Financial year
Gross salary/wages
$
Tax already withheld (PAYG)
$
Other income (interest, dividends)
$
Franking credits
$
Work-Related Deductions
Home office expenses
$
Vehicle/travel expenses
$
Tools, equipment & uniforms
$
Self-education expenses
$
Other work deductions
$
Charitable donations
$
Private health insurance?
HECS/HELP debt?
Your Estimated Refund
Estimated Tax Refund
—
Item
Amount
Estimates only, for planning purposes — not financial or tax advice. Confirm your exact outcome via ATO myTax or a registered tax agent.
Common Deductions Checklist
✅ Union fees & professional memberships
✅ Home office (67c/hr fixed rate, or actual expenses)
✅ Logbook car expenses (or 88c/km flat rate up to 5,000km)
✅ Work-related phone & internet (% business use)
✅ Income protection insurance premiums
✅ Tax agent fees (deductible in year paid)
✅ Investment property interest & expenses
✅ DGR-registered charity donations over $2
⏱️ Last reviewed: 4 August 2026 · Written and reviewed by Mohsin Iqbal under our editorial policy and calculation methodology. Tax rules change — always check your own circumstances against current ATO guidance.
📖 Approx. 13 min read💰 2026–27 & 2025–26 ATO rates🔄 Updated 4 August 2026
A refund happens when your PAYG tax withheld exceeds your actual tax liability for the year — the ATO returns the difference.
Deductions reduce your taxable income, which reduces both income tax and the Medicare levy — a $2,000 deduction on an $85,000 salary added roughly $640 to the refund in our testing, not just the $600 you'd expect from the marginal rate alone.
Franking credits can generate a cash refund even with $0 tax withheld, if the credits exceed your tax otherwise payable — common for retirees and low-income share investors.
HELP/HECS now uses the marginal repayment system (since 2025–26), replacing the old flat-percentage-of-total-income approach.
This calculator supports both the current 2026–27 year and the 2025–26 year — useful if you're still finalising last year's return.
Quick Answer
You'll typically get a tax refund if the PAYG tax withheld from your pay during the year was more than your actual tax liability — this commonly happens when you have work-related deductions, started a job partway through the year, or hold franked shares. You'll owe additional tax if too little was withheld, which can happen with multiple jobs, investment income without withholding, or a HELP debt. Enter your numbers into the calculator above for an instant estimate covering income tax, Medicare levy, MLS and HELP repayments.
How Australian Tax Refunds Work
A tax refund happens when your employer (or multiple employers) withheld more PAYG tax during the year than you actually owed once your full tax return is assessed. At tax time, the ATO calculates your real liability using your total income, deductions and offsets — if you were over-withheld, the surplus is refunded to your nominated bank account. If under-withheld, you pay the difference. The ATO aims to process most digitally lodged returns within 14 business days.
Income → Tax Withheld → Claim Deductions → ATO Assessment → Refund Paid
Required Documents
Before using the calculator above, it helps to have these on hand so your figures are accurate rather than estimated:
PAYG income statement (from myGov or each employer)
Bank interest statements
Dividend and franking credit statements
Private health insurance statement
Donation receipts (for DGR-registered charities)
Work-related expense receipts
Vehicle logbook (if claiming car expenses via the logbook method)
Refund Timeline
Lodgement Method
Typical Refund Time
myTax (online, self-lodged)
7–14 business days
Registered tax agent
Usually within 14 days of lodgement
Paper return
Up to 50 business days
Times can extend if the ATO flags your return for manual review, your details don't match pre-fill data, or you have outstanding debts being offset against the refund.
💡 Tax Return Tips
Lodge early if all your income statements show as "Tax ready" in myGov — lodging before they finalise can delay processing.
Keep receipts and records for at least 5 years, even after lodging.
Double-check your bank account details before submitting, since incorrect details delay payment.
Review all pre-filled information carefully rather than accepting it blindly — pre-fill data isn't always complete or correct.
When an Australian company pays you a fully franked dividend, it comes with a franking credit representing the company tax already paid on that profit. This credit is added to your assessable income (the "gross-up"), then applied as a direct offset against your tax payable. If your franking credits exceed your tax liability — common for retirees or lower-income investors — the excess is refunded to you in cash, not just used to reduce a bill to zero. Our calculator above models this correctly: enter your franking credits and see both the offset applied against your tax and any excess refunded separately.
ℹ️ In our testing, a taxpayer with $20,000 salary and $5,000 in franking credits received a $4,680 refund — the $700 LITO and $320 remaining tax capacity absorbed part of the credit, with the $4,680 balance refunded as cash, despite having $0 tax withheld from wages.
Formula Sheet
Total income = Salary + Other income + Franking credits
Taxable income = Total income − Deductions
Net income tax = max(0, Gross tax − LITO − Franking credits)
Excess franking refund = max(0, Franking credits − (Gross tax − LITO))
Refund / Owing = PAYG withheld + Excess franking refund − (Net tax + Medicare + MLS + HELP)
Worked Examples
Situation
Total Tax & Levies
Tax Withheld
Result
$85,000 salary, no deductions, no HELP
$17,720
$22,000
~$4,280 refund
$85,000 salary, $2,000 WFH deduction
$17,080
$22,000
~$4,920 refund
$20,000 salary + $5,000 franking credits
$0
$0
~$4,680 refund (from excess franking credits)
Step-by-Step Guide to Using This Calculator
Select your financial year — 2026–27 (current) or 2025–26.
Enter your gross salary/wages and the PAYG tax already withheld (from your income statement).
Add any other income, such as bank interest or unfranked dividends.
Enter franking credits separately if you hold Australian shares paying franked dividends.
Fill in your work-related deductions by category, plus any charitable donations to DGR-registered charities.
Indicate your private health insurance status and HELP/HECS debt status.
Read your estimated refund or amount owing, with a full line-by-line breakdown below.
Common Mistakes
Forgetting franking credits entirely. Many investors only enter the cash dividend received, missing the credit that can meaningfully boost a refund.
Claiming deductions without a valid record-keeping basis. The ATO's fixed-rate and cents-per-km methods still require a reasonable basis for the claim, not just an estimate.
Assuming a big deduction guarantees a big refund. Deductions reduce taxable income, which only translates to real dollars back at your marginal rate (plus the Medicare levy effect) — they don't create a dollar-for-dollar refund.
Not accounting for HELP under the new marginal system. If you're estimating using the old flat-percentage method, your figure will be wrong.
Ignoring the Medicare Levy Surcharge. If you don't hold private hospital cover and earn above the threshold, this reduces your refund (or increases what you owe) beyond the standard 2% levy.
Sole traders forgetting GST obligations are separate from income tax. If you're registered for GST, that's reported and reconciled independently — see our GST Calculator if you need to work out GST components on business income or expenses.
Not considering extra super contributions before year-end. Additional concessional contributions can reduce your taxable income and boost your refund — see our Super Contributions Calculator to check your remaining cap.
Lodgement Deadlines
If self-lodging via myTax, the deadline is 31 October following the end of the financial year. If lodging through a registered tax agent, extended deadlines typically apply (often into May of the following year) — but you generally need to be on the agent's client list before 31 October to access the extension.
Who Should Use This Calculator?
PAYG employees wanting to estimate their refund before lodging, based on their income statement.
Share investors holding franked Australian shares, to see how franking credits affect the outcome.
Anyone claiming work-related deductions for the first time, to understand the real dollar impact.
People with a HELP/HECS debt wanting an accurate repayment estimate under the current marginal system — see our dedicated HECS/HELP Repayment Calculator for a deeper breakdown.
Those checking a 2025–26 return after 30 June 2026, who need the correct prior-year rates.
Frequently Asked Questions
The ATO processes most digitally lodged returns within 14 business days, with refunds issued to your nominated bank account. Paper returns take up to 50 business days. Check your refund status in ATO online services via myGov.
Common reasons: your employer withheld the correct amount so there's nothing to refund; you have a HELP debt reducing the refund; the ATO offset your refund against another tax debt; or some claimed deductions were disallowed on review.
Self-lodging via myTax: 31 October. Using a registered tax agent: extended deadlines typically to May of the following year — but you must be on their client list before 31 October.
If your income was below $18,200 and no tax was withheld, you generally don't need to lodge. However, if any tax was withheld from your income — which most employment does automatically — you should lodge to claim a refund of those withheld amounts.
Your income statement (PAYG summary) from each employer, bank interest statements, any investment income and dividend/franking statements, receipts for deductions claimed, private health insurance statement, and details of any government payments received.
Franking credits represent company tax already paid on your dividend. They're added to your assessable income, then applied as a tax offset. If the credits exceed your tax payable, the excess is refunded in cash — a well-known outcome for lower-income shareholders and retirees.
Yes — if you have excess franking credits (credits exceeding your tax otherwise payable), you can receive a cash refund even without any PAYG withholding, since franking credits are refundable, not just usable to reduce a bill to zero.
Roughly your marginal tax rate plus a small Medicare levy effect — not the full deduction amount. A $2,000 deduction at a 30% marginal rate typically adds around $640 to your refund (about $600 in income tax plus $40 in reduced Medicare levy), not the full $2,000.
Yes, if your income is above the compulsory repayment threshold. The repayment is calculated as part of your assessment and deducted from what would otherwise be refunded, or added to what you owe.
A deduction reduces your taxable income before tax is calculated, saving you tax at your marginal rate. An offset (like LITO or franking credits) reduces the tax payable directly, dollar for dollar — offsets are generally more valuable per dollar than deductions.
Yes — you can lodge an amendment through myGov or your tax agent, generally within two years of your original assessment for most individuals. Keep receipts for anything you plan to claim retrospectively.
Yes — if you indicate you don't hold private hospital cover and your taxable income is above the relevant threshold, the calculator applies the MLS at the correct tier for your selected financial year.
Use 2026–27 for your current pay and ongoing planning. Use 2025–26 if you're checking, finalising, or querying a tax return for the year that ended 30 June 2026.
This calculator uses official ATO-published brackets, Medicare levy thresholds, LITO parameters and the current HELP repayment system for both the 2026–27 and 2025–26 years. It's an educational estimate, not a lodged tax return — your actual outcome depends on your complete circumstances.
Your tax refund (or bill) comes down to the gap between what was withheld during the year and your actual liability once income, deductions, offsets and levies are all accounted for. Franking credits, work-related deductions and your HELP debt status all meaningfully shift the outcome. Use the calculator above with your own figures for an instant, ATO-based estimate before you lodge.