Step by step
- Taxable income: $60,000 salary + $300 interest − $1,500 deductions = $58,800.
- Tax on that: $4,288 on the first $45,000, plus 30% of the rest = $8,428.
- Low income tax offset: $325 − 1.5% of income over $45,000 = $118 off.
- Medicare levy: 2% = $1,176.
- Total owed: $9,486. Withheld: $9,900. Refund: $414.
How deductions change it
At this income every extra dollar of deductions saves 32 cents (30% tax + 2% Medicare):
| Deductions | Estimated refund |
|---|---|
| $0 | −$88 |
| $500 | $79 |
| $1,000 | $247 |
| $1,500 | $414 |
| $2,500 | $749 |
| $4,000 | $1,252 |
Common deductions at this income
- Working from home: 70 cents per hour with the fixed-rate method (keep a record of your hours).
- Work-related car trips (not your commute), tools, uniforms and protective clothing.
- Union fees, professional memberships and self-education linked to your current job.
- Donations of $2 or more to registered charities, and the cost of managing your tax affairs.
Your tax withheld is on your income statement in myGov (or in the PAYG summary). Pre-filling usually arrives by late July — waiting for it helps avoid mistakes.
When will the refund arrive?
Most electronic returns lodged through myTax are processed within two weeks, and the refund is paid straight into the bank account you nominate. If the ATO needs to check something, it can take longer — you can track progress in myGov under “Tax return status”. If you have a debt with the ATO or another government agency, the refund may be used to pay that first.
At $60,000, your employer’s withholding is usually close to your actual tax, so the refund mostly reflects your deductions and the low income tax offset (which isn’t built into the withholding tables in full). If you have private health insurance, your rebate may also be adjusted at tax time.
Don’t forget
Before you lodge, check that all your income is in: interest from every bank account, any government payments, and income from a second job or side hustle. The ATO pre-fills most of it, but not always all of it, and missing income is the most common reason for an amended assessment months later. If you discover a mistake after lodging, you can amend your return online in myTax — it’s quick, and the ATO is generally understanding about honest corrections made promptly.
Key 2025-26 figures (checked 5 November 2026)
| Item | Figure |
|---|---|
| Tax-free threshold | $18,200 |
| Rates | 16% / 30% / 37% / 45% |
| Low income tax offset | Up to $700 |
| Medicare levy | 2% (nil to $28,011 single) |
| HELP threshold | $67,000 (marginal 15% / 17%) |
| Self-lodgement deadline | 31 October 2026 |
FAQ
How much tax refund will I get on $60,000?
About $414 for 2025-26 with $1,500 of deductions, $300 interest and $9,900 withheld.
How much tax do I pay on $60,000 in 2025-26?
$9,486 including the Medicare levy, on taxable income of $58,800.
How much does $1,000 of deductions save on $60,000?
About $320 (30% tax + 2% Medicare).
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).