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 a tax return calculator. You’ll need to enter details of your income and tax paid, which can be found on the Income Statement (formerly known as a Group Certificate) your employer will provide to you in the first couple of weeks in July.
If you don’t have this yet, you could estimate your annual income and tax paid by checking your pay slip and annualising the regular income and tax paid amounts.
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
- An estimate of the amount of tax paid
- An estimate of your tax refund, or the amount that may be payable if you owe tax
If you are unsure of your earnings or your total taxable income, you can use our pay calculator to see a detailed breakdown of your salary, including tax offsets, superannuation, and taxable income.
Example of tax refund calculation
| Annual income | $100,000 |
|---|---|
Income tax payable | $22,967 |
Medicare levy | $2,000 |
Estimated tax refund amount | $3,625 |
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 ($18,200 and under). Tax rates increase progressively up to 45% for every dollar earned above $190,000.
The tax you need to pay depends on your taxable income and other factors that impact tax payable such as:
- Residency status
- Student debt
- Whether or not you have private health insurance
- 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 2024 - 2025 tax year, you will need to lodge your tax return no later than 31 October, 2025.
Just remember that depending on your situation, you may not receive a tax refund. In fact, some individuals can end up owing money to the ATO if they have underpaid tax during the financial year.
1. 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 two weeks.
Pros
- Convenient and secure
- Most tax return information is pre-filled
- Free to use
Cons
- Requires signing up to myGov and myTax
- Doesn't provide guidance on deductions (you may not receive the full refund you are entitled to)
To access myTax, you will first need to create a myGov account and link this account to the ATO.
2. 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
- Doesn't require internet access
- Doesn't require computer literacy
- Many workers are familiar with paper tax returns
- Free
Cons
- Longer waits 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
3. 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
- A professional will prepare your tax returns
- Ensures all deductions are included
- May offer suggestions on improving your tax return
- Can inform you about deductions you are unaware of
Cons
- 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).
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