Tax Refund Calculator Australia
Estimate your Australian tax refund or amount owing for 2023–24 based on ATO income tax brackets, LITO, and the Medicare Levy.
About the Tax Refund Calculator Australia
Each year, millions of Australians lodge a tax return with the Australian Taxation Office (ATO) through myTax or a registered tax agent. If your employer has withheld more PAYG tax than your actual tax liability, you receive a refund. If less was withheld, you owe the difference. Our calculator estimates this outcome using 2023–24 income tax rates, the Low Income Tax Offset (LITO), and the Medicare Levy.
The Australian income tax system uses progressive brackets starting at 0% for income up to $18,200 (the tax-free threshold), then 19 cents per dollar from $18,201 to $45,000, 32.5 cents from $45,001 to $120,000, 37 cents from $120,001 to $180,000, and 45 cents on income over $180,000. Most Australian residents for tax purposes are entitled to the tax-free threshold, the LITO, and the Low and Middle Income Tax Offset (LMITO was removed from 2022–23).
The Medicare Levy of 2% is added to most taxpayers' tax bill to fund Australia's public healthcare system. Low-income earners receive a full or partial exemption below certain thresholds. High-income earners without private hospital cover may also pay the Medicare Levy Surcharge (MLS) of 1–1.5%, which is not included in this simplified calculator.
How Australian Income Tax Is Calculated
Australian income tax is calculated on your total taxable income for the financial year (1 July to 30 June). Taxable income includes wages, salary, investment income, rental income, and other assessable amounts, minus allowable deductions. The most common deductions include work-related expenses, charitable donations, investment expenses, and self-education costs where directly related to your current income.
The Low Income Tax Offset (LITO) reduces the tax payable for lower-income earners. For 2023–24, the maximum LITO of $700 applies to incomes up to $37,500. It phases out at 5 cents per dollar between $37,501 and $45,000, then at 1.5 cents per dollar between $45,001 and $66,667, where it reduces to zero. The LITO is applied as a direct reduction to your income tax liability — it is an offset, not a deduction from income.
Your employer deducts PAYG withholding from each payslip based on a tax table formula that estimates your annual tax. If you received overtime, bonuses, or had a change in employment, the PAYG withheld may not precisely match your annual tax liability. This mismatch is what produces a refund or a tax debt at year-end. The ATO processes most returns lodged online through myTax within two weeks, with refunds deposited directly to your nominated bank account.