Tax Returns Explained Simply
Watch this video to find out how it all works in your tax return refund or payable.
See tax rates below
Australia has a complex tax system.
Our Australian tax returns for individuals with including all taxable incomes (like wages and salaries, business income, investment income) less deductions (like uniforms, business car costs, home office costs and cost of tax preparation fee) which give you what the Australian Tax Office(ATO) calls TAXABLE INCOME.
Income you must declare | Australian Taxation Office
Deductions you can claim | Australian Taxation Office
Once you have your taxable income , depending on how high it is, you are taxed progressively more as in this table of the Income tax rates. This is called Tax on your Taxable Income.
Tax rates 2025-2026
The following rates for 2025-2026 apply from 1 July 2025.
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The above rates do not include the Medicare levy of 2%.
Tax rates 2024-2025
The following rates for 2024-2025 apply from 1 July 2024.
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The above rates do not include the Medicare levy of 2%.
Once you have tax on taxable income you add Medicare levy an extra tax levied. Then you take off any taxes paid (such as on business tax instalments) and any tax offsets (such as zone offset)to get your tax return refund or amount payable. If you have already paid more tax than the tax on taxable income then you get a refund. I you have paid less tax than the tax on taxable income then you need to pay the tax payable generally in the March after the tax return period following the 30th of June. Australian tax return years fall in fiscal years from 1st July to 30th June.
For more examples and explanations of Income, deductions, taxes paid and tax offsets visit these ATO links
Income you must declare | Australian Taxation Office
Deductions you can claim | Australian Taxation Office
Tax offsets | Australian Taxation Office
Here is your bonus PDF version
Tax return explained simply by an online tax agent
Here is your bonus Audio Version
explanation of tax returns by tax agent Tax Accounting Adelaide
