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Tax Return Calculator 2023
How to see if you are owed a tax refund
The quickest way to estimate how much your tax refund will be is to use the Group Certificate your employer will provide to you within the first couple of weeks in July. If you don’t have this and want to get an estimate on how much tax you are likely to have paid, you can use our tax return calculator.
Once you have entered in details about your wages or salary, additional earnings, and tax withholdings, the tax return calculator will display:
- A summary of your earnings
- The total amount of tax paid
- If you have overpaid tax — and how much you will receive as a tax refund, which is more likely than underpaying
If you are unsure of your earnings or your total taxable income, you can use the Pay Calculator to see a detailed breakdown of your salary, including tax offsets, superannuation, and taxable income.
Example of tax refund calculation
| Annual Income | $60,000 |
|---|---|
Tax Paid | $15,000 |
Tax on income | $12,247 |
Tax refund amount | $2,753 |
How much will I pay on my tax return?
Australian income tax is levied at progressive tax rates. The lowest bracket is 0%, known as the tax-free rate for individuals on low incomes. Tax rates increase progressively up to 45% for incomes over $180,000.
The tax you need to pay depends on your taxable income and other factors that impact tax payable such as:
- Residency status
- Student debt
- Medical cover
- Marital status
- Benefits you may be eligible for
How to get a tax refund
To get a tax refund, you will need to lodge an end-of-year tax return. You will need to submit your tax return to the Australian Tax Office (ATO), and this can be done in three ways:
- Online
- By post
- Through a registered tax agent
Tax returns must be completed and lodged no later than 31 October following the end of the most recent tax year.
For the 2020 - 2021 tax year, you will need to lodge your tax return no later than 31 October, 2021.
Online
Lodging your tax return online is often the fastest and easiest way to submit your financials and receive a refund. You can complete a tax return form online by joining myTax through the ATO website, which will show a detailed breakdown of your estimated tax refund. Most refunds are issued within 2 weeks.
| Pros | Cons |
|---|---|
Convenient and secure Most tax return information is pre-filled Free | Requires sign-up to myGov and myTax Doesn’t provide guidance on deductions — you may not receive the full refund you are entitled to |
By post
If you cannot access myTax, or prefer to submit a paper tax refund, you can download a Tax Return for Individuals form from the ATO website. You will also need to provide supplementary information if you are including income generated from:
- A partnership or trust
- Capital gains
- Foreign payments
- Rental properties
Most refunds are issued within 50 business days of lodging a return.
| Pros | Cons |
|---|---|
Doesn’t require internet access Free Doesn’t require computer literacy Many workers are familiar with paper tax returns | Longer wait for refunds — up to 50 business days You’ll need to request a tax return package from the ATO or download one online You’ll be responsible for mailing your return to the ATO |
Through a registered tax agent
A registered tax agent can also help prepare and lodge your tax return. You will need to first select an agent registered with the Tax Practitioners Board (TPB), and make an appointment to discuss your tax return.
Once you’ve chosen your agent, you will need to prepare any tax records to take to the appointment — if you are using the ATO’s myDeductions tool, you can track any work-related deductions throughout the year and email then directly to your tax agent.
Your agent will prepare your tax return and inform you of any possible improvements, or additional deductions which you may be unaware of (for example, salary sacrificing your car or other eligible expenses like home loan payments). As they offer the most comprehensive preparation of your tax return, using a tax agent will often ensure you receive the maximum refund possible.
| Pros | Cons |
|---|---|
A professional will prepare your tax return Ensures all deductions are included Will offer suggestions on improving your tax return You’ll need to keep accurate records of any expenses and possible deductions Can inform you about deductions you are unaware of | Fees required to prepare and submit your tax return Requires choosing a tax agent and making an appointment You’ll need to keep accurate records of any expenses and possible deductions |
Do bonuses or commissions affect my tax return?
Employers are required to withhold a certain amount of employee earnings for tax obligations. Withholding tax is calculated each pay cycle, which means if you receive bonuses or commission in addition to your regular salary or wage, you may notice a higher rate of tax being applied to your earnings from one week to the next.
When you lodge your end-of-year tax return, your total earnings for the year will be assessed in relation to the tax withheld by your employer. If you have paid too much tax, you will receive a tax refund.
Other employee benefits could also impact your tax return, such as receiving a car allowance (generally increases your taxable income) or making payments on a car through a novated lease (reduces your taxable income).
Tax Return Calculator FAQ
What is the financial year or tax year?
The financial year begins on 1 July and ends on 30 June the following year. Any money you earn during this period — through a salary, wages, investments, shares, or capital gains — will represent your taxable income for that tax year.
How much tax can I get back?
The amount of tax you can get back through an end-of-year refund will depend on the amount of tax you have paid throughout the year, and whether the amount is relative to your marginal tax rate. If you think you have overpaid tax, you can use the tax return calculator to estimate your refund in seconds.
Do I need to lodge a tax return myself?
If you earned income during the tax year, you will need to lodge a tax return. If you do not wish to complete your tax return yourself, you can engage the services of a registered tax agent to help prepare and submit your return on your behalf.
What are reportable fringe benefits?
Fringe benefits tax (FBT) applies to benefits received by an employee additional to their salary. If an employee receives fringe benefits with a total taxable value greater than $2,000 during the Fringe Benefit Tax year (1 April - 31 March), the employer must apply a gross-up rate to the amount and show this on the employee’s payment summary.
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