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$1,218

Estimated annual tax$14,617

Breakdown

Income tax$13,217

Medicare levy$1,400

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

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

Rates and thresholds last updated for the 2024–25 financial year.

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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