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myTax 2023 Tax estimate – important information

How to understand your myTax estimate and why it may differ from your final assessment.

Last updated 31 May 2023

Things to know

Your tax estimate is based on the information in your tax return. This includes information:

  • you've provided
  • that's been pre-filled that you consider is correct.

If you haven't completed all your information, myTax will still show you an estimate based on the information currently in your tax return.

The myTax calculation is an estimate only and the final balance of your assessment may differ.

When we have processed your return, we will send you a notice of assessment. In some cases we send a statement of account with a notice of assessment.

The notice of assessment will either show tax amounts you need to pay or will receive as a refund. There are a number of reasons why you may receive a tax bill.

Understand your myTax estimate

When you select Calculate, myTax will work out your tax estimate.

myTax will show your estimated tax refund or estimated tax amount owing to the ATO.

You can see more details of this amount by selecting Show calculation. This will show you:

Why your myTax estimate may differ from your final assessment

The final balance of your assessment may differ from the myTax estimate when:

  • it involves complex calculations – for example, income averaging
  • we receive information that affects the balance of your assessment.

This includes situations where you:

  • have a credit or debit balance with the ATO, including debts on hold
  • have a debt with Services Australia or another government department, to learn more visit Offsetting your credit or refund
  • are lodging the return late
  • have incorrectly edited or deleted pre-filled information
  • received an employment termination payment
  • received an Australian superannuation lump sum payment
  • had excess concessional superannuation contributions
  • had excess non-concessional superannuation contributions
  • are entitled to use your spouse’s unused seniors and pensioners tax offset
  • have requested we calculate the deductible amount of your undeducted purchase price of a foreign pension or annuity
  • received credit for tax paid by a trustee
  • are entitled to a government super contribution
  • are entitled to a low income super tax offset
  • have amounts where rounding rules apply.

Changes that may affect your estimate

Your income tax assessment may look a little different than in previous years. You may have a lower refund than expected or you may get a tax bill.

There are a number of reasons for this, for example:

For a complete list see Why your tax return outcome may change in 2023.

After you've lodged

Remember, you have until 31 October 2023 to lodge your 2023 tax return with myTax, unless we have allowed you to lodge it later.

If we work out you:

  • are entitled to a tax refund – we will pay it to the Australian financial institution account you've nominated at Step 2 Financial institution details.
  • have a tax bill to pay    
    • if you lodge on time, any tax bill will be due the later of    
      • 21 November 2023 (21 days after your tax return was due to be lodged), or
      • 21 days after you receive your notice of assessment.
       
    • if you lodge late, any tax bill will be due 21 November 2023 (21 days after the tax return was due to be lodged).
    • your notice of assessment will contain your payment advice. However, when your account balance is different to the outcome of your assessment, we send a statement of account and attach the payment advice to it.
    • you can make payment towards your tax bill after you have lodged your tax return. See How to pay for your options.
     

Why you may receive a tax bill may also assist you in understanding your estimate and help preventing future debt.

More information

Outlined below are the different elements to help you understand your myTax estimate.

Taxable income

To work out your taxable income, we add together your income from all sources. This includes:

  • employment income from your income statements and payment summaries
  • interest income
  • dividends
  • managed fund distributions
  • rental income
  • business or sole trader, partnership and trust income (including loss details)
  • capital gains or losses
  • foreign income, assets and entities
  • other income.

We then reduce your income amount by any allowable deductions you can claim. These may include:

  • Work-related expenses – for example, working from home expenses.
  • Other expenses – for example, gifts and donations or the cost of managing your tax affairs.

Tax on your taxable income

Your taxable income amount is matched to the income tax bracket depending on your circumstances. See, Individual income tax rates.

Non-refundable tax offsets

Non-refundable tax offsets, depending on your circumstances, may include:

Non-refundable tax offsets only reduce against the tax on your taxable income. Any excess offset is:

  • not refundable, and
  • not offset against other liabilities, like Medicare levy. (One exclusion here is any excess foreign income tax offset (FITO). Excess FITO can be offset against Medicare levy and Medicare levy surcharge.)

Other liabilities

Other liabilities, depending on your circumstances, may include:

  • Medicare levy
  • Medicare levy surcharge
  • Compulsory repayments of study and training support loans if your taxable income is more than the repayment threshold, and you have debt for
    • Higher Education Loan Program (HELP – formerly known as HECS)
    • VET Student Loan (VSL)
    • Trade Support Loan (TSL)
    • Student Financial Supplement Scheme (SFSS)
    • Student Start-up Loan (SSL) and ABSTUDY Student Start-up Loan.
     

Refundable tax offsets

Refundable tax offsets may include:

Credits and other entitlements

Credits from tax may include:

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