Rates used
| Taxable income | 2025-26 | 2026-27 |
|---|---|---|
| $0 – $18,200 | Nil | Nil |
| $18,201 – $45,000 | 16% | 15% |
| $45,001 – $135,000 | $4,288 + 30% | $4,020 + 30% |
| $135,001 – $190,000 | $31,288 + 37% | $31,020 + 37% |
| Over $190,000 | $51,638 + 45% | $51,370 + 45% |
| Other items | 2025-26 |
|---|---|
| Low income tax offset | $700, reducing to $0 at $66,667 |
| Medicare levy | 2%; nil to $28,011 (singles), phased in to $35,013 |
| HELP repayments | 15c per $1 above $67,000; $8,700 + 17c above $125,000; 10% of income above $179,285 |
How the refund is worked out
Your refund is simply the tax your employer withheld minus the tax you actually owe for the year. The ATO works out what you owe on your taxable income (income minus deductions), subtracts the low income tax offset, then adds the Medicare levy and any HELP repayment. If more was withheld than that, you get the difference back.
Default example
$75,000 salary, $500 interest, $2,000 of deductions, $14,800 withheld for 2025-26: taxable income $73,500, tax $12,838 + Medicare $1,470 = $14,308, so the estimated refund is $492.
Deadlines
If you lodge yourself, the 2025-26 return was due on 31 October 2026. If you use a registered tax agent and were on their books by then, you usually have until 15 May 2027. Late? Lodge as soon as you can — if you are owed a refund, a penalty is unlikely.
FAQ
How is my tax refund calculated?
Tax withheld by your employer minus the tax you owe on your taxable income (after the low income tax offset), the Medicare levy and any HELP repayment.
What refund do I get on $75,000 with $2,000 of deductions?
About $492 for 2025-26 if $14,800 was withheld and you earned $500 interest.
What are the 2025-26 tax rates?
Nil to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. The 16% rate falls to 15% from 1 July 2026.
When is the 2025-26 tax return due?
31 October 2026 if you lodge yourself; later (usually 15 May 2027) through a registered tax agent.
Sources (checked 5 November 2026): ATO “Tax rates – Australian resident” (2025-26 and 2026-27), ATO low income tax offset, ATO “Medicare levy reduction for low income earners” (2025-26 thresholds $28,011 / $35,013), ATO “Study and training support loans rates and repayment thresholds” (2025-26 and 2026-27), Treasury Laws Amendment (More Cost of Living Relief) Act 2025 (15% from 1 July 2026).