The Finance AlgorithmTFA

Tax Refund Estimator

Calculator

Estimate your Australian tax refund or tax bill. Enter your income, deductions, and offsets to see what to expect at tax time.

Free to useNo data storedAI insightsUpdated: February 2026

Wondering whether you'll get a tax refund or owe the ATO? The answer depends on how much tax your employer withheld vs how much you actually owe after deductions and offsets. The average Australian tax refund is around $2,600 — but many people leave money on the table by not claiming all eligible deductions. This estimator gives you a preview of your tax return outcome before you lodge.

Enter Your Details

Enter Your Details

$

Your total income before any deductions

$

Total PAYG tax your employer(s) withheld during the year

$

Work from home, car, tools, uniform, professional development, etc.

$

Any additional income from investments

$

Interest on investment loans, property expenses, depreciation

Affects Medicare Levy Surcharge calculation

Real-World Examples

Office Worker with Deductions

Lisa earned $78,000, had $17,500 tax withheld, and has $4,200 in deductions (home office + car + subscriptions).

Taxable income: $73,800. Tax on $73,800: $12,938. Medicare: $1,476. Total tax: $14,414. Tax withheld: $17,500. Estimated refund: $3,086. Lisa's deductions saved her $1,260 in tax.

Multiple Income Sources

Ryan earned $65,000 salary (tax withheld: $13,000) plus $8,000 in freelance income (no tax withheld) and $1,500 in bank interest.

Total income: $74,500. Tax on full amount: $13,150 + Medicare $1,490 = $14,640. Only $13,000 withheld. Ryan OWES the ATO $1,640. Freelancers and investors often owe tax because no PAYG is withheld.

Frequently Asked Questions

Glossary

PAYG Withholding
Pay As You Go — the tax your employer deducts from your pay throughout the year and sends to the ATO on your behalf. Your tax return reconciles this against your actual tax liability.
Tax Offset
A direct reduction in tax payable (not taxable income). Unlike deductions, offsets reduce your tax bill dollar-for-dollar. Examples: LITO, private health insurance rebate.
Taxable Income
Your total income minus allowable deductions. This is the amount your tax is actually calculated on.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Enter your total gross income from all sources.
  2. Input the total tax already withheld by your employer(s) — check your pay summaries.
  3. Add up your work-related deductions (home office, car, tools, etc.).
  4. Include any investment income (interest, dividends, rental).
  5. Add investment-related deductions if applicable.
  6. See your estimated refund or tax bill.
Key Information
  • The average Australian tax refund is approximately $2,600 (ATO data).
  • You can claim up to $300 in work deductions without receipts (but you must have actually spent the money).
  • Work from home? You can claim $0.67/hour using the fixed rate method (2022-23 onwards).
  • Tax refunds are NOT free money — they mean you've overpaid tax during the year. Ideally, your withholding matches your actual tax.
Pro Tips
  • Lodge your tax return early (from 1 July) to get your refund faster — the ATO processes most returns within 2 weeks.
  • If you use a tax agent, you have until the following March to lodge, but you must register with them by 31 October.
  • Track ALL work expenses during the year — a $5,000 deduction at the 30% bracket saves you $1,500.
  • Consider adjusting your PAYG withholding if you consistently get large refunds — you could have more in your pay instead.
Avoid These Mistakes
  • Not claiming work from home expenses — millions of Australians work from home but many forget to claim.
  • Overclaiming deductions without records — the ATO uses data matching and AI to detect anomalies.
  • Forgetting to declare interest income, dividends, or crypto gains — the ATO gets data directly from banks and exchanges.
  • Missing the $300 no-receipt threshold — you CAN claim small amounts, but total must be genuine expenses.
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