Lodging your tax return: income year, due dates, tax rates and the Medicare levy

Australia's income year runs from 1 July to 30 June. If you earned income and had tax withheld, you generally need to lodge a tax return with the ATO after the income year ends. If you lodge it yourself with myTax, the due date is 31 October; a registered tax agent can lodge later. The ATO then works out whether you get a refund or owe tax. Australian residents for tax purposes have a tax-free threshold of A$18,200 and also pay the 2% Medicare levy; foreign residents and working holiday makers pay different rates.

Key facts

Income year

1 July to 30 June the following year.²

Due date if you lodge yourself

31 October.³

Due date with a registered tax agent

Most registered tax agents have a special lodgment programme that lets them lodge for clients after 31 October. If you are using an agent for the first time, or changing agents, contact them before 31 October.⁴

2026–27 tax rates for Australian residents

Taxable income A$0–A$18,200: nil. A$18,201–A$45,000: 15 cents for each A$1 over A$18,200. A$45,001–A$135,000: A$4,020 plus 30 cents for each A$1 over A$45,000. A$135,001–A$190,000: A$31,020 plus 37 cents for each A$1 over A$135,000. A$190,001 and over: A$51,370 plus 45 cents for each A$1 over A$190,000.¹

Tax-free threshold

A$18,200 (for full-year Australian residents).¹

Medicare levy

2% of your taxable income. The tax rate table above does not include it.¹

Foreign residents and the Medicare levy

Foreign residents for tax purposes do not pay the Medicare levy. You claim the exemption in your tax return for the number of days you were a foreign resident.⁶

Withholding rate for foreign residents

Your employer withholds tax at foreign resident rates, starting at 30%.²

Withholding rate for working holiday makers (subclass 417 and 462)

An employer registered with the ATO as a working holiday maker (WHM) employer withholds 15% on your first A$45,000 of income. An unregistered employer withholds at foreign resident rates.²

When working holiday makers do not need to lodge

If all your income was wages earned while a WHM and your total taxable income for the year was less than A$45,001, you do not need to lodge a tax return or a non-lodgment advice. If you want to claim deductions, you must lodge.²

Pre-fill timing

Most information from employers, banks, government agencies, health funds and others is pre-filled into myTax by late July.³

Processing and refund times

Most myTax returns are processed within 12 business days, and refunds usually arrive within 2 weeks.³

Requirements for myTax

A myGov account linked to the ATO. It is free, and you do not need to install any software.³

Medicare levy exemption for temporary residents

First apply to Services Australia for a Medicare Entitlement Statement (MES). You can apply from 1 July; processing takes up to 8 weeks. Lodge your tax return after you receive the MES, and choose exemption category 3 in the Medicare levy section. Your spouse and dependants must all also be in an exemption category.⁵

Who is this for, and what are the requirements?

• Most people who earned income and had tax withheld must lodge a tax return. If you do not need to lodge, you still need to submit a non-lodgment advice (you can do this in myTax).
• Australian residents for tax purposes: you pay resident rates, get the A$18,200 tax-free threshold and pay the Medicare levy. You must declare income from both Australia and overseas.
• Foreign residents for tax purposes: you pay tax only on Australian-sourced income, get no tax-free threshold, pay rates starting at 30%, and do not pay the Medicare levy.
• Working holiday makers (subclass 417 and 462 visas): most pay WHM rates whether or not they are tax residents. The exception is tax residents from countries with a non-discrimination article (NDA).
• How tax residency is decided: the ATO uses its own tests (the resides test, the domicile test, the 183-day test and others). It is not the same as your visa category with Home Affairs. You can be a tax resident on a temporary visa, and you can hold a visa and still not be a tax resident.
• Temporary visa holders who are not entitled to Medicare can claim a Medicare levy exemption, but you need an MES, and your spouse and dependants must all also be in an exemption category.

How do I do it? Steps and process

1. Confirm the income year and your residency status

   The income year is 1 July to 30 June. Use the ATO's residency tool to work out whether you are an Australian resident or a foreign resident for tax purposes. This decides your tax rates, tax-free threshold and Medicare levy.

2. Wait until your employer marks your income statement as tax ready

   The income and withheld tax your employer reports to the ATO through Single Touch Payroll appear in the ATO service in myGov. Most pre-fill information arrives by late July; if you lodge too early, you may miss something.

3. Apply for an MES first if you need a Medicare levy exemption

   If you are a temporary resident not entitled to Medicare, apply to Services Australia through myGov for a Medicare Entitlement Statement from 1 July. Processing takes up to 8 weeks. Lodge your tax return after you receive it.

4. Lodge with myTax

   Sign in to myGov → select ATO → Manage tax returns. Check the pre-filled information, add any income that was not pre-filled, and enter your deductions (you need records). The due date is 31 October. You can also use a registered tax agent; only registered agents may charge a fee, and you can check registration on the Tax Practitioners Board website.

5. Check your notice of assessment

   Most returns are processed within 12 business days. Your notice of assessment is sent to your myGov Inbox and shows your refund amount, or the tax you owe and the due date for paying it. Refunds usually arrive in your nominated Australian bank account within 2 weeks.

6. Pay any tax owed and fix mistakes

   If you owe tax, pay it by the date on your notice of assessment. If you made a mistake, you can amend your return in ATO online services. If you are leaving Australia permanently, you can lodge early using a paper return before the income year ends.

What documents do I need?

• A myGov account linked to the ATO
• Your employer's income statement (in ATO online services, with the status tax ready) or payment summary
• Records of bank interest, dividends and other income (most are pre-filled)
• Receipts or records for any deductions you claim (you can keep them in the myDeductions tool in the ATO app)
• Your private health insurance annual statement (if you have one)
• To claim a Medicare levy exemption: a Medicare Entitlement Statement issued by Services Australia

What should I watch out for?

• Tax rates can change each 1 July: for 2026–27, the second bracket dropped from 16 cents to 15 cents for each A$1. Check the table for the year you are lodging; the ATO's tax rates page lists them by year.
• The Medicare levy is an extra 2% on top of the tax rates. There is also a separate Medicare levy surcharge (MLS), which only applies to higher earners who do not hold eligible private hospital cover.
• Having an MES does not mean an automatic exemption: if your spouse or any dependant is entitled to Medicare, you cannot claim the exemption.
• Working holiday makers: tell your employer you hold a subclass 417 or 462 visa when you start, and check that the employer is registered with the ATO as a WHM employer. Otherwise tax is withheld at foreign resident rates.
• Pre-filled information is only there to help you; do not rely on it completely. Add any income that was not pre-filled. The ATO matches data from banks and other third parties, so undeclared income will be adjusted and may be penalised.
• If you contact a tax agent only after 31 October, you may not get the later lodgment date. If you are using an agent for the first time, contact them before 31 October.
• Refunds can only be paid into an Australian bank account. If you are preparing to leave Australia, do not close your account too soon.
• Do not trust calls or SMS saying you must pay a fee to get your refund. The ATO never charges a fee to pay a refund.
• This page is a plain-English summary of public information. Always check the ATO website for the official rules. This is not immigration, legal or tax advice; if your situation is complex, see a registered tax agent.

What has changed recently?

• 2026-07-01
  From the 2026–27 income year, the rate for Australian residents in the A$18,201–A$45,000 bracket drops from 16 cents to 15 cents for each A$1 (the ATO's tax rates page lists the new 2026–27 table by year).Source: ato.gov.au ↗

Common questions

Where can I check the official information?

1. Tax rates – Australian residentAustralian Taxation Office · ato.gov.au
2. Working holiday makersAustralian Taxation Office · ato.gov.au
3. Lodge your tax return online with myTaxAustralian Taxation Office · ato.gov.au
4. Lodge with a registered tax agentAustralian Taxation Office · ato.gov.au
5. Not entitled to Medicare benefitsAustralian Taxation Office · ato.gov.au
6. Your tax residencyAustralian Taxation Office · ato.gov.au

Share after you sign in with Google and the link will carry your invite code: when a friend signs up through it, you get 20 more questions.

Share this guide×

Share after you sign in with Google and your link will carry your invite code: when a friend signs up through it, you get 20 more questions. You can still share without signing in — it just won’t earn anything.

WhatsAppCopy textEmailXFacebookWeChat

Spotted a mistake or something out of date? Tell us →

More in this topic