Your employer withholds tax from each pay using ATO tables. When you lodge your return, your actual tax for the year is worked out and the difference is refunded or billed.
Most people lodging now are doing their 2025-26 return, which still uses the 16% band. Here's how to estimate where you'll land.
How a refund is worked out
Taxable income = income − deductionsTax = bracket tax − low income tax offset + 2% Medicare levy + HELP repaymentRefund = tax withheld − tax| Taxable income | 2025-26 rate | 2026-27 rate |
|---|---|---|
| Up to A$18,200 | Nil | Nil |
| A$18,201 – A$45,000 | 16% | 15% |
| A$45,001 – A$135,000 | 30% | 30% |
| A$135,001 – A$190,000 | 37% | 37% |
| Over A$190,000 | 45% | 45% |
Worked example
Example: A$85,000 income, A$18,500 withheld, 2025-26
Deductions: 600 work-from-home hours × 70c = A$420, plus A$500 other: taxable income A$84,080.
Income tax A$16,012 plus Medicare A$1,682: A$17,694.
Refund: about A$806. With a HELP debt, the A$2,562 repayment turns it into a bill of about A$1,756.
Keep a record of your work-from-home hours as you go with the work from home tracker.
How to use this calculator
- Choose the income year: 2025-26 for returns being lodged now.
- Enter your income and the tax withheld from your income statement.
- Enter your work-from-home hours and other deductions.
- Tick if you have a HELP or other study loan.
FAQs
Why do I owe tax when I have a HELP debt?
If your employer didn't withhold enough for the HELP repayment, or you have two jobs, the repayment is added when you lodge. Ask your employer to withhold for HELP if they aren't.
What's the work-from-home rate?
70c an hour under the fixed rate method, covering power, phone, internet and stationery. You need a record of the hours you actually worked from home.
When is the tax return due?
31 October for 2025-26 if you lodge yourself, or later if you're on a registered tax agent's list before then.
Why is my refund smaller than last year?
Often because withholding was closer to your real tax, or you claimed fewer deductions. From 2026-27, the lower 15% rate also means less tax is withheld during the year.
Sources
- ATO: Tax rates – Australian residents
- ATO: Study and training loan repayment thresholds and rates
- ATO: Medicare levy
Results are estimates for Australian residents and aren't tax or financial advice. For your own return, check with a registered tax agent. Spotted a mistake? Tell us.