Tax refund estimator

Purpose. To give an Australian resident employee a quick estimate of whether their tax return will produce a refund or an amount to pay, before the return is prepared.

Assumptions and why we chose them. You can change every assumption above that is not a legislated rate.

• Resident tax rates, the low income tax offset, the 2% Medicare levy, the Medicare levy surcharge tiers and the HELP repayment rates for the year you choose, as published by the ATO. Rates as at . The 2026-27 Medicare levy low-income thresholds had not been published at that date, so the 2025-26 thresholds are used for both years.
• The example figures are a $90,000 salary with $3,500 of work deductions, a HELP debt and hospital cover, the example used in our method notes.
• Working from home at the ATO fixed rate of 70c an hour and car travel at 88c a kilometre, up to 5,000 km. These are the 2025-26 rates. The 2026-27 rates had not been published at the rates date, so the same rates are used.
• The surcharge is worked out on taxable income plus reportable fringe benefits, at the rate for your income for surcharge purposes. With a spouse or children it uses the family threshold, raised by $1,500 for each child after the first.
• From 2026-27 the $1,000 standard work deduction applies automatically to salary and wages, with no receipts needed. It is the lower of $1,000 and your salary and wages, reduced dollar for dollar by the work-related expenses you enter, so your total work claim is the higher of your actual expenses and that amount. Other taxable income such as interest and dividends does not count toward it. Union fees, gifts, tax agent fees and anything else in other deductions are claimed on top and do not reduce it. It is not available for 2025-26.
• When you ask us to estimate tax withheld, we apply the ATO withholding formulas, including the study loan component, to an even salary through the year, from one employer, with the tax-free threshold claimed. Interest and dividends have no tax withheld.

Limitations and their effect.

• This is an estimate, not a tax return. The ATO's assessment can differ.
• Not modelled: the private health insurance rebate, the seniors and pensioners tax offset, offsets other than the low income tax offset, franking credits, foreign income, capital gains, business or rental schedules, part-year hospital cover and amounts carried from earlier years. Franking credits would raise a refund. A shortfall in the private health rebate, or capital gains, would lower it.
• Family Medicare levy thresholds are not used. They only matter where taxable income is under about $60,000.
• An estimated withholding figure will be wrong if you had bonuses, a pay rise, unpaid leave, more than one job or started part way through the year. Your income statement figure is more reliable.
• Not for non-residents, working holiday makers or part-year residents.