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SOUTHERN ALPHA

Tax · FY 2025-26

Tax refund calculator

Find out if the ATO owes you a refund — or you owe them. Plug in your gross pay, PAYG tax withheld and any deductions, and we'll do the rest.

Estimated refund
+ $1,292
Coming back to you
Effective tax rate
21.8%
Marginal: 30%

How we got there

Gross income$95,000
− Deductions− $1,500
Taxable income$93,500
Income tax$18,838
Medicare levy (2%)$1,870
Total tax assessed$20,708
PAYG tax withheld$22,000
Refund+ $1,292

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Frequently asked questions

How accurate is this tax refund estimate?

It uses the same FY 2025-26 resident tax scale, Medicare levy and HECS rules the ATO uses. It won't match your assessment to the dollar because we don't model offsets (LITO, SAPTO), Medicare Levy Surcharge, private health rebates, franking credits or investment income — but it's usually within a few hundred dollars for PAYG-only earners.

What deductions can I claim on my Australian tax return?

Common work-related deductions include: car expenses for work travel (not commuting), home-office costs at the ATO fixed rate, self-education directly related to your current job, union and professional membership fees, tools and equipment, and donations to registered DGRs. You need a record of every claim and the expense must relate to earning your income.

When will I get my tax refund?

If you lodge online via myGov, the ATO usually processes refunds within 2 weeks (often within 5–10 business days). Paper lodgement takes up to 10 weeks. Refunds are paid directly into the bank account on file.

Why do I owe tax instead of getting a refund?

Most common reasons: a second job that PAYG-withheld using the tax-free threshold too, untaxed side income (Uber, freelancing, crypto gains), bonuses or commissions taxed at a lower marginal rate than your full-year average, or HECS that wasn't withheld at the correct rate by your employer.

Does this include the LMITO or low income tax offset?

The LMITO ended on 30 June 2022 and does not apply for FY 2025-26. The Low Income Tax Offset (LITO, up to $700) is not modelled here — if your taxable income is under $66,667, your real refund will be slightly larger than what we show.

How tax refunds actually work in Australia

A refund isn't a bonus from the government — it's the difference between what your employer withheld through PAYG and what the ATO assesses you owe after you lodge. When too much was withheld, you get the gap back. When too little was withheld (or you have untaxed income), you pay the gap.

The formula in one line

Refund = tax withheld − (income tax on taxable income + Medicare levy + HECS). Taxable income is your gross income minus allowable deductions. The income tax piece uses the FY 2025-26 resident scale: tax-free to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above. The 2% Medicare levy lands on top for most taxpayers earning over roughly $27,000.

Worked example

Say you earn $95,000 gross, your employer withheld $22,000 of PAYG, you have $1,500 of work-related deductions, no HECS, and you elect the Medicare levy:

  • Taxable income: $95,000 − $1,500 = $93,500
  • Income tax: $4,288 + ($93,500 − $45,000) × 30% = $18,838
  • Medicare levy: $93,500 × 2% = $1,870
  • Total assessed: $20,708
  • Refund: $22,000 − $20,708 = $1,292

The five biggest reasons your refund is bigger (or smaller) than expected

  • A second job using the tax-free threshold. Both employers withhold as if you earned only that amount — you get hit with the gap at tax time.
  • Untaxed side income. Uber, freelancing, dividends without franking, crypto sales — none of it has tax withheld.
  • A pay rise mid-year. PAYG smooths over the full year; if you got a bump in March, withholding catches up only after assessment.
  • HECS withholding lag. Bonuses and commissions push you over a HECS threshold your regular salary doesn't.
  • Missed deductions. Home office hours, professional memberships, ATO myDeductions — small claims add up to hundreds back.

When you'll see the money

Lodge through myGov and most refunds land in your bank account within 5–10 business days. The ATO publishes batch processing dates each year — if yours is delayed past two weeks, check that your bank details and prior-year returns are up to date. Paper lodgement takes 6–10 weeks.

What this calculator does not model

The Low Income Tax Offset (LITO, up to $700 below $66,667), Seniors and Pensioners Tax Offset (SAPTO), Medicare Levy Surcharge, private health rebate, franking credit refunds, foreign income, capital gains, and trust distributions are all out of scope. For a precise figure, use the ATO's official Income Tax Estimator or speak to a registered tax agent.

Calculations use FY 2025-26 resident tax brackets, the simplified 2% Medicare levy above the standard threshold, and the FY 2025-26 HECS/HELP repayment scale applied to gross income. Private hospital cover is asked about because, without it, high earners face the Medicare Levy Surcharge — that surcharge is not modelled.