How to calculate your tax return in Australia 2025

Calculating your Australian tax return for the 2024–25 financial year follows the same basic process as previous years, but with one major change: the Stage 3 tax cuts that started on 1 July 2024 lower most marginal rates and reshape the brackets. Here's how to work out your refund or amount owing in seven steps.

Assessable income includes your salary or wages, business income, investment income (interest, dividends, rent), capital gains, foreign income, government allowances and most super income streams once you're over preservation age.

Common deductions include work-related expenses, self-education costs, donations to deductible gift recipients, the cost of managing tax affairs, income protection premiums, and a portion of home office expenses if you genuinely work from home.

• Keep digital receipts — the ATO accepts photos
• If your total work claim is under $300, you don't need receipts but you must have actually spent the money
• Use the 67c/hour fixed-rate method for home office, or actual costs

Stage 3 reduced the 19% rate to 16% (up to $45,000) and dropped the 32.5% rate to 30% (extending to $135,000). The thresholds for the 37% and 45% brackets also lifted. Use a Tax Calculator to apply the brackets quickly.

2% of taxable income for most residents, with a low-income exemption. The Medicare Levy Surcharge applies on top if you don't have private hospital cover and your income exceeds the threshold.

The Low Income Tax Offset (LITO) reduces tax for incomes up to $66,667. Other offsets include the seniors and pensioners offset (SAPTO), the spouse super contributions offset and the small business income tax offset.

Your employer withheld tax from each pay. If the total tax you actually owe is less than what was withheld, you get a refund — otherwise, you have an amount owing.

myTax is free, pre-fills most of your data, and is available from 1 July. Allow about 2 weeks for the ATO to process electronic returns and pay refunds into the bank account on file.