Why do I get a big refund each year?

Too much is being withheld — often because you have multiple jobs and each withholds as if you had the tax-free threshold. You can claim the threshold on one job and ask for less withholding on the other, or use the ATO calculator to get a more accurate withholding amount.

What if I have a second job?

On your TFN declaration for the second job, tick 'Do not claim the tax-free threshold'. More tax will be withheld from that job so you're less likely to get a bill at tax time.

Is this the same as the ATO withholding calculator?

No. We use similar tax rates but the ATO calculator is the official tool. Use it for the most accurate withholding recommendation, especially if you have complex circumstances.

Tax Withholding Helper

Estimate how much tax to have withheld per pay so you roughly break even

Enter your expected income and pay frequency. We use ATO-style rates to suggest a withholding amount per pay. Employers use tax tables; this is a guide only.

Your expected income and pay

Enter your expected taxable income and pay frequency. We estimate how much tax to have withheld per pay so you roughly break even.

Expected taxable income ($ per year)

Your expected taxable income for the year (after deductions). Use gross salary if you have no deductions.

Pay frequency

Financial year

Residency for tax

Claim tax-free threshold (tick for main job; untick for second job)

Private hospital cover

No Medicare Levy Surcharge if you have appropriate cover

HELP / HECS debt

Withholding can include HELP repayment

Reportable fringe benefits ($) — optional

Suggested withholding

Aim to have about this amount withheld per month to roughly break even at tax time.

Per month$1,050

Estimated annual tax$12,600

Breakdown

Income tax$11,220

Medicare levy$1,380

Employers use ATO tax tables to withhold from your pay. If you are not employed, use the ATO withholding calculator or make voluntary payments. This is an estimate only.

How to Use This Calculator

1Enter your expected taxable income for the year
2Select how often you get paid
3Choose financial year and residency
4Tick or untick tax-free threshold (untick for second job)
5See suggested withholding per pay

What is PAYG withholding?

Your employer withholds tax from each pay (PAYG withholding) based on your TFN declaration and the ATO tax tables. At the end of the year, the total withheld is compared to your actual tax liability — you get a refund if too much was withheld, or a bill if too little.

This helper estimates your annual tax and divides it by your pay periods so you know roughly how much to aim for. It does not replace the ATO withholding calculator or your employer's process.

What affects withholding?

Tax-free threshold: If you claim it (main job), no tax on the first $18,200. Second job: untick so more is withheld.
HELP / HECS: Repayments are included in withholding if you have a debt and your income is above the threshold.
Medicare Levy Surcharge: Higher earners without hospital cover pay MLS; withholding can include it.

Tips

•Use the ATO Tax withheld calculator for an official estimate
•Update your TFN declaration if your situation changes (e.g. second job, HECS paid off)
•If you're self-employed or have side income, consider voluntary PAYG instalments

Frequently Asked Questions

Official Sources

Rates checked against the ATO — verified 18 August 2026

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

Rates and thresholds last updated for the 2026–27 financial year.

About this calculator

This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.

This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.

Related Tools

Salary Tax Calculator

Take-home pay and deductions

Tax Refund Estimator

Refund or amount owing from withheld tax

Tax Bracket Explorer

Australian tax brackets

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About this calculator

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.