๐๐๐ฑ ๐๐๐๐ฎ๐ง๐ ๐จ๐ซ ๐๐๐ฑ ๐๐ข๐ฅ๐ฅ? ๐๐จ๐ฐ ๐๐จ ๐๐ง๐จ๐ฐ ๐๐๐๐จ๐ซ๐ ๐๐จ๐๐ ๐๐ฆ๐๐ง๐ญ
๐๐๐ฑ ๐๐๐๐ฎ๐ง๐ ๐จ๐ซ ๐๐๐ฑ ๐๐ข๐ฅ๐ฅ? ๐๐จ๐ฐ ๐๐จ ๐๐ง๐จ๐ฐ ๐๐๐๐จ๐ซ๐ ๐๐จ๐๐ ๐๐ฆ๐๐ง๐ญ
Not sure whether youโll receive a tax refund or owe money this year?
Using an ATO tax calculator for 2026 helps you estimate your position before lodging โ so there are no surprises.
This guide explains how to calculate your tax step-by-step and plan ahead with confidence.
๐ก ๐๐ก๐ฒ ๐๐ฌ๐ ๐ ๐๐๐ฑ ๐๐๐ฅ๐๐ฎ๐ฅ๐๐ญ๐จ๐ซ?
๐ Estimate your refund or tax bill early
๐ Avoid unexpected liabilities
๐ Plan your cash flow better
๐ Ensure deductions are correctly included
๐ The accuracy depends on the data you enter
๐ ๐๐จ๐ฐ ๐๐จ ๐๐ฌ๐ญ๐ข๐ฆ๐๐ญ๐ ๐๐จ๐ฎ๐ซ ๐๐๐ฑ (๐๐๐๐)
1๏ธโฃ ๐๐๐ญ๐ก๐๐ซ ๐๐จ๐ฎ๐ซ ๐๐จ๐๐ฎ๐ฆ๐๐ง๐ญ๐ฌ
Before calculating, collect:
โ Income statements (salary, wages, PAYG)
โ Bank interest records
โ Investment or rental income details
โ Business/side income records
โ Deduction receipts (WFH, car, tools, etc.)
2๏ธโฃ ๐๐๐ฅ๐๐ฎ๐ฅ๐๐ญ๐ ๐๐จ๐ฎ๐ซ ๐๐๐ฑ๐๐๐ฅ๐ ๐๐ง๐๐จ๐ฆ๐
๐ Formula:
Gross Income โ Deductions = Taxable Income
๐ This is the amount the ATO uses to calculate tax
3๏ธโฃ ๐๐ฉ๐ฉ๐ฅ๐ฒ ๐๐๐๐โ๐๐ ๐๐๐ฑ ๐๐๐ญ๐๐ฌ
Australia uses a marginal tax system, meaning different portions of income are taxed at different rates.
๐ Always apply tax rates to your taxable income, not gross income
4๏ธโฃ ๐๐๐ ๐๐๐๐ข๐๐๐ซ๐ ๐๐๐ฏ๐ฒ & ๐๐๐ฃ๐ฎ๐ฌ๐ญ
๐ Add 2% Medicare levy
๐ Subtract any eligible tax offsets
5๏ธโฃ ๐๐จ๐ฆ๐ฉ๐๐ซ๐ ๐๐ข๐ญ๐ก ๐๐๐๐ ๐๐๐ฑ
๐ Formula:
PAYG Withheld โ Total Tax Payable = Result
โ Positive = Refund
โ Negative = Tax Bill
๐ก ๐๐๐ฑ๐๐๐ฅ๐ ๐๐ง๐๐จ๐ฆ๐ ๐ฏ๐ฌ ๐๐ซ๐จ๐ฌ๐ฌ ๐๐ง๐๐จ๐ฆ๐
๐ Gross Income = Total earnings
๐ Taxable Income = After deductions
๐ Many people overestimate tax because they donโt subtract deductions
๐ ๐๐๐๐ฎ๐๐ญ๐ข๐จ๐ง๐ฌ ๐ฏ๐ฌ ๐๐๐ฑ ๐๐๐๐ฌ๐๐ญ๐ฌ
๐ Deductions reduce taxable income
๐ Offsets reduce tax payable directly
๐ Example:
$100 deduction โ $100 saving
$100 offset = $100 saving
๐ ๐๐๐๐ฅ ๐๐ฑ๐๐ฆ๐ฉ๐ฅ๐ (๐๐ข๐ฆ๐ฉ๐ฅ๐ข๐๐ข๐๐)
๐ Income: $70,000
๐ Deductions: $2,500
โ Taxable Income: $67,500
๐ After tax + Medicare:
Estimated tax โ $13,700
๐ If PAYG withheld = $14,000
โ Estimated refund โ $300
โ ๏ธ ๐๐จ๐ฆ๐ฆ๐จ๐ง ๐๐ข๐ฌ๐ญ๐๐ค๐๐ฌ
โ Forgetting extra income (interest, side hustle)
โ Using gross income instead of taxable income
โ Ignoring Medicare levy
โ Missing deductions
โ Confusing offsets with deductions
๐ These lead to incorrect estimates
โ ๐๐ฆ๐๐ซ๐ญ ๐๐ข๐ฉ๐ฌ
โ Track deductions throughout the year
โ Keep proper records (ATO requirement)
โ Review your tax position before lodgement
โ Use professional advice for accuracy
๐ผ ๐๐ฎ๐ฉ๐๐ซ๐ญ๐๐ฑ ๐๐๐ง ๐๐๐ฅ๐ฉ
An ATO tax calculator gives an estimate โ
๐ But expert review ensures accuracy and compliance.
๐ ๐๐จ๐ง๐ญ๐๐๐ญ ๐๐ฎ๐ฉ๐๐ซ๐ญ๐๐ฑ
๐ https://supertax.com.au/
๐ Suite 1, 7 Bridge St, Werribee VIC 3030, Australia
๐ (03) 7074 8818
๐ง info@supertax.com.au
๐ Plan ahead. Stay compliant. Avoid tax surprises.
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