Tax
Why Is My Tax So High In Australia?
Short answer
Tax that looks high is usually one of five things: not claiming the $18,200 tax-free threshold, no TFN on file (47% withholding), a HELP/STSL repayment starting at $69,528, a bonus over-withheld in a single pay, or income crossing into the 30% or 37% brackets. Much of it returns at tax time.
Common causes
Check whether you claimed the tax-free threshold, lodged a TFN declaration, and have a HELP/STSL debt. A one-off bonus or extra hours can also be over-withheld for that pay. The Medicare levy adds 2% on top.
What to do
Make sure your main job claims the threshold and your TFN is lodged. If you are still over-withheld, you receive the excess when you lodge your return. Check with the PAYG calculator.
Frequently asked questions
Is 47% withholding normal?+
Only if you have not provided a TFN. Lodge a TFN declaration to be taxed at normal rates.
Does HELP make my tax higher?+
It adds a compulsory repayment on income above $69,528 (the 2026-27 threshold).
Will I get over-withheld tax back?+
Yes, at tax time, if more was withheld than your final tax.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
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