Australian Tax Refund Calculator
If your employer withheld A$22,000 in PAYG tax from a A$90,000 salary in 2026-27, you'd get an estimated A$2,680 refund — your real tax bill is A$19,320 (A$17,520 income tax + A$1,800 Medicare levy), so the difference between what was withheld and what you actually owe comes back to you. Enter your own salary, deductions and PAYG withheld below to estimate yours.
$2,680.00 estimated refund (2026-27)
Taxable income: $90,000 · Real tax bill: $19,320 · PAYG withheld: $22,000
Income tax: $17,520 · Medicare levy: $1,800
You withheld more than you owe — the ATO pays you back the difference once your return is assessed.
What was withheld vs what you actually owe
How each tax bracket applies to your taxable income
| Rate | Income from | to | Taxed here | Tax |
|---|---|---|---|---|
| 0.0% | $0 | $18,200 | $18,200 | $0.00 |
| 15.0% | $18,200 | $45,000 | $26,800 | $4,020.00 |
| 30.0% | $45,000 | $90,000 | $45,000 | $13,500.00 |
2026-27 resident tax rates, Medicare levy and low-income thresholds, LITO and the HELP/HECS marginal repayment bands verified against the ATO (ato.gov.au) — same data as our Australian Income Tax Calculator. This is an estimate for a PAYG employee only: it doesn't model non-resident rates, capital gains, or line-by-line individual deductions beyond the total you enter, and covers the 2026-27 tax year only. How we calculate →
How your tax refund is actually calculated
A refund isn't a bonus — it's the ATO handing back the gap between what your employer withheld from your pay all year (PAYG withholding, shown on your income statement in myGov) and what you actually owe once your tax return is assessed. If withholding was higher than your real bill, you get the difference back; if it was lower, you owe the ATO the shortfall.
Your real bill = income tax on your taxable income (barème ATO, minus the Low Income Tax Offset) + the 2% Medicare levy (+ surcharge if you have no private hospital cover and earn above the threshold) + a compulsory HELP/HECS repayment if you have a study loan and earn above A$69,528. For example, on A$90,000 with A$22,000 withheld: real tax = A$19,320, so the refund is A$2,680.
Deductions increase your refund by lowering taxable income
Work-related deductions (uniforms, tools, union fees) and home-office/working-from-home costs reduce your taxable income, not your tax bill directly — each dollar of deduction saves you your marginal rate, not a full dollar. For example, on a A$60,000 salary with A$3,000 in deductions (taxable income A$57,000) and A$12,000 withheld, the estimated refund is A$3,385 — real tax of only A$8,615 against that withholding.
Common categories the ATO accepts: work-related car and travel expenses, uniforms/protective clothing, self-education directly tied to your current job, tools and equipment, union/professional fees, and a fixed or actual-cost claim for working from home. You need records (receipts, logbooks) to substantiate them — the ATO's myDeductions app in the ATO app is the easiest way to track these through the year.
The "big refund" myth
A large refund isn't free money from the government — it means you effectively gave the ATO an interest-free loan of your own money throughout the year via over-withholding. Some people deliberately keep withholding high (e.g. not claiming the tax-free threshold on a second job, or leaving HELP debt ticked even when repayments would self-correct) to force a lump sum at tax time; others would rather have that cash each payday. Neither is wrong — but the total amount of tax you pay for the year is the same either way, only the timing differs.
If you have a HELP/HECS debt and earn above the repayment threshold, a compulsory repayment is deducted from your refund calculation the same way income tax is — it isn't optional. For example, on A$120,000 with a HELP debt and A$28,000 withheld, the HELP repayment alone is A$7,571, on top of A$26,520 income tax and A$2,400 Medicare levy — total tax A$36,491, which is more than the A$28,000 withheld, so this example actually owes the ATO a balance of A$8,491.
When your refund actually arrives
Most refunds land within 2 weeks of the ATO issuing your Notice of Assessment (NOA) once you lodge (electronically, via myTax or a registered agent) — often faster if you lodge early and your return is straightforward. If you have outstanding debts to the ATO or other government agencies (Centrelink, child support), your refund can be automatically offset against them first, so the amount that hits your bank account may be lower than the estimate.
Frequently asked questions
How is my tax refund calculated in Australia?
Refund = PAYG tax withheld from your pay (shown on your income statement) minus your real tax bill (income tax after LITO, plus the 2% Medicare levy, plus HELP/HECS repayment if applicable). On A$90,000 with A$22,000 withheld, that's A$2,680.
Why did I get a smaller refund than expected?
Usually one of: less tax was withheld than your marginal rate needed (common with a second job or bonus), your HELP/HECS repayment kicked in, you lost the Medicare levy exemption, or a government debt (Centrelink, child support, ATO) was offset against the refund before it reached your account.
Do work-from-home deductions increase my refund?
Yes — WFH costs (using either the ATO's fixed rate per hour or actual expenses with records) reduce your taxable income, which lowers your tax bill by your marginal rate on the deducted amount, increasing the gap between what was withheld and what you owe.
Does a HELP/HECS debt reduce my refund?
Yes. For 2026-27 the compulsory repayment is nil below A$69,528, then a marginal percentage of income above that in bands, up to 10% of total repayment income at the top. It's added to your tax bill the same way income tax is, so it reduces (or reverses) a refund.
How long does a tax refund take in Australia?
Typically about 2 weeks after the ATO issues your Notice of Assessment following lodgment, though it can be faster or slower depending on when you lodge and whether your return needs manual review.
Does this calculator cover 2025-26 too?
No — this estimator uses the 2026-27 ATO resident tax brackets, Medicare levy, LITO and HELP/HECS repayment bands only (the 2ᵉ bracket cut from 16% to 15% took effect 1 July 2026). It doesn't include a year selector for 2025-26.
Researched & verified by the Calcuris Data & Research Team. How we build and check our tools →