myTax 2024 Tax estimate – important information

Things to know

Your myTax estimate is an estimate only.

We calculate your myTax estimate using the information currently in your tax return. This includes information:

• you provide when preparing your tax return
• we pre-fill that you consider is correct.

Your myTax estimate may differ from the final balance of your assessment.

After we process your return, we will issue you a notice of assessment.

Your notice of assessment:

• is the statement that explains how we calculate your tax assessment
• shows if you will either:
  • receive a refund
  • have a tax bill (amount you need to pay) - there are a number of reasons why you may receive a tax bill.

In some cases, we also issue a statement of account with your notice of assessment.

For more information, see Understanding the myTax estimate.

Why your myTax estimate may differ from your final assessment

There are several reasons your myTax estimate can change from your final assessment. Some common reasons include:

• we find a difference between the details in your tax return and the information we receive through pre-fill data or our data-matching program
• you prepare and lodge your tax return before all the pre-fill information is available.

Your myTax estimate may also differ from the amount you receive as it doesn’t include any existing credits or debits with us. You may receive a lower refund than expected if your credit or refund has been offset against another debt – including a debt on hold with us or debts you have with other government agencies.

Check all the details on your notice of assessment with the information in your tax return. Your notice of assessment is sent to your myGov inbox, see Get a copy of your notice of assessment.

Other reasons your outcome is different

Other reasons why your myTax estimate can change from your final assessment include where you:

• are lodging your tax return late
• 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
• request us to 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 information in your tax return requiring complex calculations – for example, income averaging
• have amounts where rounding rules apply.

After you lodge

Remember, you have until 31 October 2024 to lodge your tax return for 2024 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 2024 (21 days after your tax return was due to be lodged)
    • 21 days after you receive your notice of assessment.
  • if you lodge late, any tax bill will be due 21 November 2024 (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.

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

Understanding the myTax estimate

When you select Calculate in myTax, it will work out your estimate. Your myTax estimate will either show your:

• estimated tax refund
• estimated tax amount owing to the ATO.

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

• your taxable income
• your estimated refund or estimated amount payable, worked out as
  • Tax on your taxable income
    
    minus
  • Non-refundable tax offsets (these only reduce tax on your taxable income)
    
    plus
  • Other liabilities (including Medicare levy, Medicare levy surcharge and compulsory repayment of HELP or other study and training support loans)
    
    minus
  • Refundable tax offsets and Credits and other entitlements

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 and trust distributions
• rental income
• business or sole trader and partnership 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. For more information see, Individual income tax rates.

Non-refundable tax offsets

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

• low income tax offset
• beneficiary tax offset
• seniors and pensioners tax offset

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)
  • Australian Apprenticeship Support Loan (AASL) – formerly known as 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:

• franking credits
• private health insurance rebate or offset

Credits and other entitlements

Credits from tax may include:

• PAYG withholding – that is, tax deducted by your employer or bank.
• PAYG instalments – amounts from your activity statements.