Tax Refund Calculator – Calculate Australian Tax Refund

The quick way to find your tax reclaim is the group certificate your employer will provide you within a couple of weeks of July. Alternatively, use our free online Australian tax refund calculator to estimate how much income tax refund or reclaim you are owed. You need to provide the following information:

Besides this information, you must also provide additional details in other fields according to your circumstances.

You can’t use our online calculator if you:

A tax refund is an extra money that you pay indirectly to the Australian Tax Office more than the amount you owe in actuality. For example, if your employer deducted $30,000 from your income as withholding tax and submitted it to the ATO but the actual tax you are liable to pay is $25,000, it means you are owed $5,000 from the tax department, and you can claim it as a tax refund.

We recommend you hire expert tax services for correct tax refund calculation and to maximize your potential tax debt or refund. While using our tax refund calculator for Australian income tax refund, you have to consider other factors in addition to your taxable income mainly:

To claim a tax refund, firstly you have to submit your tax return to the Australian Tax Office. Then you compare the amount withheld and the actual amount that you have to pay. This difference is your tax refund.

It’s a big fact that most people working in Australia are owed a big tax refund from the ATO. The average tax reclaim amount is AU $2,600. Different factors like residency status, superannuation, and work expenses greatly affect the tax refund calculation by lowering your taxable income.

If you are new to Australia then you are considered a non-resident for the first 6 months and a 15% tax is charged on your income. If you stay in Australia for over six months in the same place and have built good community links, then you will be considered a resident for tax purposes. You will then be eligible for a tax reclaim for the higher tax you paid earlier.

Allowable Work Expenses

Some expenses that you directly incur to earn your income are allowable deductions, and you can claim them to lower your taxable income. Those expenses must meet the three rules to be allowable work expenses:

• You must have paid for them yourself and not be reimbursed.
• You must have proof of them, such as a bank receipt, credit card statement, etc.
• They must be directly related to your earned income.

Medicare Levy Exemption

Every Australian resident has to pay 2% of their taxable income as the Medicare levy. Foreign citizens are exempt from this levy, though it is still deducted from their salaries. So they can claim a refund of this Medicare levy. Moreover, if you are entitled to seniors and pensioners tax offset, and you have income equal to or less than $24,276 or your family income is equal to or less than $40,939, you can ask for an exemption to increase your tax refund amount

Australian Superannuation Refund

This is another element to mention in your tax return to increase your tax refund. Superannuation is a fund scheme in Australia designed to replace your income when you retire. When you turn 18 and start earning $420 a month, your employer deposits 11% of your ordinary income into a superannuation fund on your behalf.

If you want to leave the country upon your retirement, you can claim a part of this fund as a refund. This is only possible if you are leaving Australia.