Tax Refund Estimator Australia: How Much Could You Get Back?

Every year, millions of Australians receive a tax refund after lodging their return with the ATO. But do you know if you're likely to get money back — or face a bill? This guide explains how refunds work and how to estimate yours for FY 2025-26.

Why Do You Get a Tax Refund?

Throughout the year, your employer withholds tax from your pay under the Pay As You Go (PAYG) system. This withheld amount is calculated based on your salary and the information on your Tax File Number (TFN) declaration.

A refund occurs when the total tax withheld from your pay is more than your actual tax liability for the year. Common reasons this happens include:

• You worked for only part of the year (e.g., started a new job mid-year)
• You have deductible work-related expenses that reduce your taxable income
• You received tax offsets (e.g., Low Income Tax Offset)
• You had multiple jobs at different times and tax was withheld at higher rates
• You made personal super contributions you're claiming as a deduction

How to Estimate Your Tax Refund

To estimate your refund, you need to compare two numbers:

1. Tax withheld: Total PAYG tax withheld from your pay during FY 2025-26 (shown on your payment summaries or income statements via myGov)
2. Tax liability: Your actual tax owed based on your taxable income (income minus deductions), calculated using the FY 2025-26 tax rates

Refund = Tax Withheld − Tax Liability

If the result is positive, you'll get a refund. If negative, you owe additional tax.

Use our Income Tax Calculator to quickly work out your tax liability based on your annual income.

Common Deductions That Increase Your Refund

The more legitimate deductions you claim, the lower your taxable income — and the bigger your potential refund. Common deductions for Australian employees include:

• Work-related expenses: Tools, uniforms, protective clothing, training
• Home office costs: If you work from home (fixed rate or actual cost method)
• Vehicle expenses: Work-related travel (not commuting to/from work)
• Professional subscriptions and union fees
• Self-education expenses related to your current job
• Personal super contributions: If you lodge a Notice of Intent to claim a deduction

Always keep receipts and records. The ATO requires evidence for all deductions claimed.

Refund Example: Salary Earner with Deductions

Let's say you earned $65,000 in FY 2025-26 and had $2,500 in work-related deductions:

• Gross income: $65,000
• Deductions: $2,500
• Taxable income: $62,500
• Tax on $62,500: ~$11,717 + Medicare Levy $1,250 = $12,967
• Tax withheld by employer (on $65,000): ~$13,717
• Estimated refund: ~$750

When Can You Lodge Your Tax Return?

The Australian financial year runs from 1 July to 30 June. You can lodge your tax return from 1 July each year. The standard deadline for individuals lodging online via myTax is 31 October.

If you use a registered tax agent, you may have until May the following year. The ATO typically processes refunds within 2 weeks of lodgement.

Plan Ahead to Maximise Your Refund

The best refund is one you've planned for — not a surprise. Here are some strategies:

• Track all work-related expenses throughout the year (use a dedicated folder or app)
• Consider voluntary super contributions before 30 June to boost deductions
• Check if salary sacrifice can reduce your taxable income — see the Salary Sacrifice Calculator
• Review your HECS-HELP withholding — make sure your employer is withholding the right amount via the HECS Calculator

For a full picture of your tax situation, use our Take-Home Pay Calculator to understand exactly how much tax you're paying throughout the year.