All Second job or hobby posts

Re: Second job

Tammy — Wed, 26 Feb 2020 04:35:57 GMT

He is under 16 so most things won't apply for him which helps. I will however keep eye on bank interest, so cheers for that!!

Re: Second job

macfanboy — Wed, 26 Feb 2020 04:32:01 GMT

That is $18,200 total income including both jobs, Centrelink, bank interest etc.

Re: Second job

Tammy — Wed, 26 Feb 2020 04:20:10 GMT

He will be pleased. He is only young so the chances of him earning that much will be small.

Re: Second job

macfanboy — Wed, 26 Feb 2020 04:12:09 GMT

The taxfree threshold is for all incomes combined.

If you have two jobs and the total taxable income will be less than $18,200 then you can claim it in both jobs.

Second job

Tammy — Wed, 26 Feb 2020 03:48:28 GMT

My son wants to take up a second job, can he claim tax-free threshold if BOTH incomes combined will be below the amount set?
Thank you

Re: Twitch Streaming Income Tax

macfanboy — Tue, 25 Feb 2020 04:09:08 GMT

It has nothing to do with the 'amount' of money that you make.

Re: Do I need an ABN ??

RodrigoP — Mon, 24 Feb 2020 03:07:52 GMT

Hi@ katey34

Thanks for your question. Refer to Employee/contractor decision tool to work out if you will be working as an employee or contractor for tax purposes. If you are considered to be an contractor you may apply for an ABN.

PSI income depends on the work type you will be doing.Refer to ATO QC16906 for further clarifications on PSI income.

Hope this information may help you to find answers to your question.

Thanks.

RodrigoP

Do I need an ABN ??

katey34 — Sat, 22 Feb 2020 05:02:28 GMT

Hi everyone,

I have a regular PAYG job. Have been asked by a friend to clean their business office once a week. I would use cleaning equipment/products located at the office. They will pay me by putting money in my bank account. Am I an employee? Do I need an ABN & invoice them ? Is this PSI income ? I've tried the PSI test but it didn't say for sure. I've love the extra income just not sure how to declare income/ manage tax. It would only be 150/week. I earn under 40k from my PAYG job.

I can't find an example from ATO site that is clear about this situation.

Any clarification gratefully received !

Thanks

Re: Tax for tutoring

KylieS — Thu, 20 Feb 2020 22:20:21 GMT

Hi ,

To add to the great i nformation from , if you have to declare it you would report it on your income tax return.

Check out the page on our website Do I need to lodge a tax return?

KylieS

Re: Tax for tutoring

TaxedoMask — Thu, 20 Feb 2020 04:06:24 GMT

Depends on your other income.

If the sum of tutoring income and your other income doesn't go over $18,200 - then nothing to do.

If you do have another job and go over that threshold, then you pay tax at your marginal rate.

Tax for tutoring

Evie123 — Wed, 19 Feb 2020 23:52:25 GMT

I was approached by a parent of a child in a class I completed a placement in about tutoring her son for 2 hours a week.

I recieve approximately $80 a week from this, but am unsure of whether I will need to declare it for tax (and if yes how I must go about this).

I don't have an ABN, don't advertise and don't intend to do any more tutoring than I am now.

Thank you

Re: Tax Implications Regarding Youtube Revenue

TaxedoMask — Tue, 18 Feb 2020 01:02:57 GMT

1) At what stage is this hobby defined as a job?

This is subjective so there's no bright-line test. Generally depends on how you approach it, intention to generate revenue, whether you have a business stratergy, what equipment and resources you are devoting to the project etc. Depending on the factors, it's either a hobby or a business.

2) Does this revenue (approx $1800-$2000) need to be declared during tax time? and

Hobby - no. Business - yes. see here - you need to complete the Business and Professional Items schedule in your tax return.

3) Am I able to make any tax deductions for the equipment I purchase from the taxable income from my full time job?

Yes (either over time as depreciation or immediately) - you need to look at your content creation business separately from your "job" - being employment income.

You might also want to be aware of the non-commercial loss rules which stops your business income from being able to offset your emplyment income. (you carry it forward instead)

Tax Implications Regarding Youtube Revenue

Dizza — Tue, 18 Feb 2020 00:51:52 GMT

Hi, I have a question surrounding youtube revenue I receive (approximately $150 AUD per month). At the moment I treat it as more of a hobby along side my full time job but I plan to take it more seriously in a couple of years time.

Apart from the investment of time, there’s also an associated financial cost for equipment, software and gear required to make content. I wanted to know;

1) At what stage is this hobby defined as a job?

2) Does this revenue (approx $1800-$2000) need to be declared during tax time? and

3) Am I able to make any tax deductions for the equipment I purchase from the taxable income from my full time job?

I tried searching the forums for an answer to my question but could not find one.

Thanks!

Re: HECS debt from many years ago?

TaxedoMask — Thu, 13 Feb 2020 23:25:35 GMT

It is unlikely the HECS debt is cancelled since such amounts are not provable (item 25 on pg. 16) so can "survive" even a bankruptcy. It's probably still on the governments books so once she returns, if her income exceeds the repayment threshold then she would be required to make compulsory repayments.

My understanding was that from FY16-17 and onwards, overseas residents were required to make compulsory repayments if their income exceeded the threshold for each relevant year. (iirc it was a reform announced in the May 2015 budget). There is a mechanism on myGov to submit your overseas income.

With this said - the ATO may have written off such a debt (given its age) but they that may re-raise the debt upon her return.

HECS debt from many years ago?

gobear — Thu, 13 Feb 2020 09:00:02 GMT

I have a friend who we used to study together and she borrowed HECS in the late 1990's, then went back to Hong Kong for good in early 2000, was planning to come back around that time to work here but ended up delay coming back around next month due to the cronovirus. Plan to move back here for good again and settle down and realised she hasn't paid the HECS yet so she is kinda worried

In terms of HECS, does she needs to pay back given its more than 20 years? If so, how is it done? Based on the income threshold? Or does she needs to notify the ATO as soon as she submit the tax return? etc

Re: Second Job tax

SYoungTax — Wed, 12 Feb 2020 14:38:08 GMT

Have a look at this thread to determine how much tax you should have paid on your second job and see if it is correct:

https://community.ato.gov.au/t5/Tax/How-much-tax-should-I-pay-on-a-second-job-Claiming-the-tax-free/ta-p/8111

Alot of the time, on the second job, you won't tick the claim tax free thresshold box as you have arealdy claimed it on the first job. Refer to website to determine relevant tax withheld amount - https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC#TWC/questions

As you have suggested, when you lodge a tax return for that financial year that has ended, per your tax return, the ATO will see what you have earned overall from all your jobs and calculate how much you should have paid and refund any excess you've paid. If you claim the tax free threshold on multiple jobs you will usually end up with a tax bill however if you only do this on one job then generally you shound end up with a small refund (depending on your other tax affairs). I don't believe you can pay tax up-front unless you are on a PAYG instalment payment system and you will just need to ensure that you have sufficient funds to make payment on your tax liability when you lodge your tax return.

All the best!

Second Job tax

kylebuck81 — Wed, 12 Feb 2020 13:41:44 GMT

I was working a second job for about 4 weeks and do not believe I was paying the correct tax during that time period, I have quit now but is there a way I can pay that tax before I receive an inflated tax bill at the end of the financial year

Re: bleep work: Paying taxes as a financial dominatrix

bgcswan — Fri, 07 Feb 2020 04:32:45 GMT

That is extremely helpful! Thank you so much.

Re: bleep work: Paying taxes as a financial dominatrix

TaxedoMask — Fri, 07 Feb 2020 00:00:09 GMT

It sounds like you are running a business of "content creation". This generally forms part of taxable income.

If you are only making $5k per year - I wouldn't sweat it - given the $18,200 tax free threshold.

If you are going over the threshold (perhaps due to other jobs, income etc), then income you earn is taxable but the cost of doing business (think: photography/videography equipment, internet, fetish equipment etc) may be deductible - either outright or apportioned over their effective life.

The alternative is to argue that this is just a side hobby - to which is not taxed. This is less likely due to your approach and based on the fact you are expanding your... services. To distinguish the two, see here.

In either case, this is not regarded as "work" in the context of the 40 hours per fortnight restriction on student visas. You are free to pursue your business / private interests without restrictions in this regard.

Re: Is tax higher on second income?

TaxedoMask — Thu, 06 Feb 2020 23:37:22 GMT

Its not 50% but the tax would be higher on the basis you are not claiming the tax free threshold from this second job (the question in the TFN declaration).

This is just the withholding tax. The correct amount of tax is calculated when you do your tax return.

Is tax higher on second income?

Jazibear — Thu, 06 Feb 2020 09:10:15 GMT

I've been offered a second job. My main income is around $690 gross , my second job will only be 4 hours a week at $24.36 an hour , potentially 8 hours a week at random . I've been told that I'll have to pay 50٪ tax on my second job , is that correct?

bleep work: Paying taxes as a financial dominatrix

bgcswan — Thu, 06 Feb 2020 04:43:36 GMT

I joined the world of financial domination (findom) sometime September 2019. This is not my full-time job or anything but rather something I do on the side as a hobby you could say because I like creating content. For those of you that are not familiar with findom, I receive monetary gifts or "tributes" from submissive men all over the world in exchange for nothing. I understand that this sounds too good to be true for those of you who are not familiar with the fetish/kink world, but it's true.

I haven't kept track of how much I've made since I started because I don't rely on this as my income source whatsoever, but if I were to give you a number, I would say I've made around 5k. I use Twitter as my main platform but I have branched out to clip sites such as OnlyFans and IWantClips recently to make more content.

I understand that content creators in USA have to fill out a w9 form if they've made more than 600 USD on OnlyFans in a tax year, but the Australian tax law is unclear on this subject matter so I am unsure as to what I should declare and how I should go about it. Would I have to file for an ABN to declare everything I make from Twitter and clip sites or is there a certain threshold? Any useful insight into the legality behind financial domination/fetish work would be hugely appreciated!

I should also mention that I am not Australian and I am on a Student Visa (Subclass 500) which allows me to "work up to 40 hours every 2-week period once [my] course starts." How does online "work" as this fit into this definition?

Looking forward to hearing your responses!

Re: Don’t know where to start with my small business

macfanboy — Sat, 01 Feb 2020 23:54:36 GMT

It sounds like a business to me.

It doesn't matter how much you will earn or if it is your main job or that you only do it on weekends.

If you are going about it in a business-like manner, advertising it and receiving money then it is a business.

You would declare all the income and all of the expenses related to earning that income.

You don't have to 'register' the business, just get a free ABN from the ATO.

If you find, after several years, that you are losing money then you may re-evaluate it as a hobby and not declare income nor claim any expenses.

Don’t know where to start with my small business

Mathrick — Sat, 01 Feb 2020 14:13:21 GMT

Hi everyone,
I would like to start a small business hiring items for people to use for weddings/engagements/events. Most of the items I plan on hiring would only be $10-$50. I work full time so my intention isn’t to earn a wage from this endeavour, but operate this business more as a hobby on weekends (as I love party planning so I think helping others make arrangements for their events would be really fun). I have noticed multiple people on Facebook and other websites “hiring” items however I am highly doubtful that they trading as a business etc.
I guess what I’m wondering is whether I can get myself into trouble for undertaking my “hobby” and earning any money in addition to my real job and not Registering as a business/ paying tax etc. I’m just not sure how I can be expected to pay tax when I’m doubtful any money I receive would reflect the hours I am putting into this. Also whether anyone has any advice on public liability etc

Re: How much tax percentage that I need to pay for my second job ?

ATOCommunity — Fri, 31 Jan 2020 04:49:08 GMT

oops! You're right, thanks for taking the time to provide us with feedback.

If you have other ideas on how we can improve our Community please let us know!

Re: How much tax percentage that I need to pay for my second job ?

macfanboy — Thu, 30 Jan 2020 23:38:54 GMT

Well done NicolaC for coming in at the last moment and getting it correct!

I'm beginning to understand exactly how "anonymous" felt about answering questions only to have ATO staff come in at the last moment and say yes that's correct..heres a bit more info...

Re: How much tax percentage that I need to pay for my second job ?

NicolaC — Thu, 30 Jan 2020 22:00:07 GMT

we have an article about this over here that you might find helpful: How much tax should I pay on a second job?

Re: How much tax percentage that I need to pay for my second job ?

macfanboy — Thu, 30 Jan 2020 05:39:33 GMT

You are taxed on your total taxable income for the financial year.

This is income from all sources.

The tax-free-threshold is generally per person not per job unless both jobs will earn, in total, below $20,000.

You may find, depending on how much you will earn in the second job, that they are not taking enough tax out.

This is because they do not know how much you are earning from your first job and any other sources.

They will start taxing you at 19 cents per dollar up to $37,000.

Depending on how much you earn from your first job, this may not be enough.

Imagine you earn $37,000 from your first job and tax you correctly.

Now your second job, really need to tax you at 32.5c per dollar up to $90,000 because this income is added to your $37,000

In short, there is no set % for second jobs as the second job has no idea how much to tax you at.

How much tax percentage that I need to pay for my second job ?

Bvista — Thu, 30 Jan 2020 04:02:24 GMT

Re: ABN to get a website for a hobby

macfanboy — Wed, 29 Jan 2020 23:52:15 GMT

Sound like a business to me.

A business is not just one that 'makes' something.

If you are advertising, going about it in a business-like manner, setting up a .com website, receiving payment for it you are running a business.

https://www.ato.gov.au/Business/Starting-your-own-business/Before-you-get-started/Are-you-in-business-/

ABN to get a website for a hobby

Crash76 — Wed, 29 Jan 2020 09:02:31 GMT

I want to get a .com.au website domain for a small karate school, and believe that i need an ABN to be able to get a .com.au domain.

If i do this, it means i am registering myself as a business, but in reality its just a hobby, as i will only be running the school from a local hall twice a week.

The ATO "is it a hobby" test talks about making things, but all i do is deliver a class.

I want the ABN but dont want to have to do reporting statements and tax declarations etc. Is it ok to have the ABN but still run it as a hobby?

Re: Uber Eats Tax

macfanboy — Wed, 29 Jan 2020 00:08:22 GMT

Transporting food not people doesn't require you to be registered for GST unless your total turnover from working with an ABN exceeds $75,000 which it won't.

Make sure that you record the Kms that you travel when working with Ubereats.

If you only expect to earn $4,000 then it probably wouldn't be worth it keeping a logbook, claiming 68 cents per km up to 5,000 km should be ok.

Re: Uber Eats Tax

Biggiesmalls — Tue, 28 Jan 2020 07:19:44 GMT

Sounds like you'll need an ABN

Read this https://community.ato.gov.au/t5/Tax/Delivering-food-or-goods-using-a-digital-platform-or-app/ta-p/12721

Uber Eats Tax

UncleBert — Tue, 28 Jan 2020 07:12:13 GMT

I Currently have a full time job where the employer pays my tax for me at the moment and I was thinking of signing up for uber eats as a food delivery driver on the weekend.

In the hypothetical situation here what would be required from me.

I work a full time job and earn $91,000 per year Gross

I want to start a second job as an uber eats delivery driver in my spare time.

As this uber eats delivery driver I earn $4,000 Gross

Total income would be $95,000 per year Gross

The employer continues to take and pay the tax on the 91k in the primary job on my behalf.

Am I required to sign up for an ABN for the second job? (Uber eats)

Do I pay GST on the 4k from uber? / Do I have to sign up for GST for this small of an amount?

Will my total personal income be assumed as 95K Gross?

Thanks

Bert.

Re: receiving financial voluntary donations for hobby

macfanboy — Fri, 24 Jan 2020 23:18:30 GMT

No need to worry about GST as your turnover, unless they are extremely expensive coffee mugs!, will not exceed $75,000.

By the sounds of it it is just a hobby and you will barely recover your expenses.

Therefore I wouldn't worry about it for taxation.

If this changes and you start to go about it in a business-like manner, make a profit, advertise, etc then you may need to declare it.

Re: Tax on 2nd job

macfanboy — Fri, 24 Jan 2020 23:13:03 GMT

Tax is calculated on the total taxable income that you have received by the end of the financial year.

This will not be the case for the 2nd job as it knows nothing of your first job so at best it should not give you the tax-free threshold which will help but probably won't be enough.

If you are aware of what you will end up being paid in the financial year for the second job, you can work this out and request a PAYG variation to increase the amount withheld.

https://community.ato.gov.au/t5/Tax/How-much-tax-should-I-pay-on-a-second-job-Claiming-the-tax-free/ta-p/8111

receiving financial voluntary donations for hobby

caged_broccoli — Fri, 24 Jan 2020 10:54:42 GMT

I'm interested in setting up a Red Bubble account and selling goods there, such as customised coffee cups, where Red Bubble takes a profit and I take a small percentage of that profit.

I expect to sell maybe 10 coffee cups in a whole year total. I consider this just a hobby for tax purposes.

Do I need to worry about G.S.T.?

Anything else I need to worry about? Is there any information specific to Red Bubble that I should know about?

Tax on 2nd job

rednigoy — Fri, 24 Jan 2020 08:53:04 GMT

How the tax is calculated doing 2 jobs.

Re: Tax Free Threshold

macfanboy — Fri, 17 Jan 2020 02:41:08 GMT

The tax-free threshold is for all of your taxable income for the financial year.

It is not per job.

I would imagine that you have earned over the tax-free threshold for your older job.

Therefore your new job needs to be taxed at a much higher rate or you will end up with a tax bill.

Tax Free Threshold

Jess2 — Fri, 17 Jan 2020 01:40:37 GMT

Hi, I have just started a second job which I know will be my higher paying position. I had claimed the tax free threshold for my first job but now want it to be for this new job. I selected this option when starting the new job but I want to make sure the new job will be under the tax free threshold.

Is there anything more I have to do for this?

Thank you

Re: Secondary Tax

TaxedoMask — Thu, 09 Jan 2020 05:48:58 GMT

Its just like how says.

For example if you earn $50,000 from your first job (32.5% bracket) then every dollar you earn from your 2nd job is taxed at 32.5% until you hit the higher brackets (as thats your marginal rate).

If you are earning this amount you add the medicare levy on top too (since your income would be too high for the Medicare Levy exemptions). If your income is higher than this, be mindful when it crosses the 90k (individual) / 180k (family) threshold for the Medicare Levy Surcharge may apply.

Also should you take up the second job, when you submit the TFN declaration for the 2nd job - you shoud select No for question 9 where it asks Do you want to claim the tax-free theshold from this payer?

Re: Tax from second overseas job

arobertson — Thu, 09 Jan 2020 02:54:01 GMT

Thanks TaxedoMask. Apprecaited.

It still sucks that the money was made working OS, I didnt draw on any government resources and I'll still be assessed at the full marginal rate. Wheres the justice?

Re: Tax from second overseas job

TaxedoMask — Thu, 09 Jan 2020 00:54:42 GMT

You will be assessed at your marginal rate on the full amount.

Work related deductions would have the same eligibility criteria as working in Australia. Note that as your are not travelling for work, I cannot see how you would be able to claim food or accomodation expenses.

ATO working overseas

Tax from second overseas job

arobertson — Wed, 08 Jan 2020 22:43:01 GMT

Hi. Two questions here. I'm looking at working in Qatar for a three month period while I'm on holidays. Total amount I will be receiving over the three months is US$62,400 tax free (AU$90,835.68). How much tax will I need to pay once I return to Australia? Out of that $US62.4K, I will need to pay accomodation/food/laundry plus travel to and from the worksite. I know I can claim laundry but is that it?

Re: Secondary Tax

macfanboy — Wed, 08 Jan 2020 02:52:15 GMT

You are taxed on your total taxable income for the financial year.

So it all depends on exactly how much extra you will be earning above your current taxable income because ultimately you will pay tax at that marginal tax rate.

Don't rely on your second job to tax you correctly as they have no idea what your total taxable income will be from the first job.

Secondary Tax

TashaAsh — Wed, 08 Jan 2020 02:39:24 GMT

I work a full time 38 hour job, however am looking at getting a second job to help with savings. However I am unsure how secondary tax works. Is there a certain amount of hours you can do before getting taxed a ridiculous amount?

Re: Change from no threshold to yes threshold

macfanboy — Tue, 31 Dec 2019 00:48:14 GMT

Your employer should start taxing you at the lower rate once it is completed.

It is the employer who taxes you not the ATO.

Change from no threshold to yes threshold

TTruman11 — Tue, 31 Dec 2019 00:29:56 GMT

Once the employee has completed a tax declaration form to change from No threshold to yes threshold, do I need to send this into the ATO?

Re: do I need to report income earned through private tutoring?

DuncanS — Sun, 29 Dec 2019 23:01:49 GMT

Agree with macfanboy, unlikely to be a hobby due to regularity and profit making intention.

You may be entitled to a ABN and would then report business income/expenses in the Business section of your Tax Return.

The data matching capabilities and information gathering abilities of the ATO are developing rapidly.

Have a talk with the ATO.

Duncan

Re: Threshold income

DuncanS — Sun, 29 Dec 2019 22:12:12 GMT

Munni,

Interesting question.

There have been many questions like this on the ATO Forum - you may like to have a read.

Australian residents are taxed according to thresholds and whether they claim the threshold from their employer.

As macfanboy says, it is somewhat difficult to work out your tax due to the variable hours in your main job.

I would suggest working out some scenarios for a FY based on hours worked and pay rate.

As we are nearly half way into a FY, your payslips from July - December are a starting point.

It is ATO custom to suggest to employees to claim the threshold from only 1 employer at a time.

I understand that it is possible to claim from multiple employers at the same time if there is a reasonable basis ie both jobs combined less than say $18,000 in a FY.

Do some sums and let us know.

Duncan

Re: do I need to report income earned through private tutoring?

macfanboy — Sat, 28 Dec 2019 04:52:55 GMT

Definitely not a hobby.

A hobby is not defined by the lack of money or time spent.

You are earning money in a regular manner and it should be reported to the ATO under Personal Service Income.

You will, of course, be able to claim any related expenses.

do I need to report income earned through private tutoring?

vman1988 — Sat, 28 Dec 2019 04:16:11 GMT

I am planning to help students to academically perform well. I will do this roughly 2~4 hours during the weekend. This is not my primary job ( I am working full time ). However, I will be charging students $30 ~ $60 depending on what I teach. This means that for each week I will be earning $120 ~ 240 a week extra. I think this is a hobby and should not be reported to the ATO. However, I want to check with professionals before helping students. What should I do?

Re: Working second job on a public holiday

macfanboy — Thu, 26 Dec 2019 23:34:16 GMT

You can be paid by as many employees as you want.

Re: Working second job on a public holiday

Deebahhs — Thu, 26 Dec 2019 22:14:18 GMT

Thanks for your reply.
I would essentially be getting paid from 2 employers for the same day. Is that allowed?

Re: Working second job on a public holiday

macfanboy — Thu, 26 Dec 2019 08:07:02 GMT

Yes, why wouldn't you be?

You are being paid for the day, not to have a holiday, you can even work in the office on that day (for extra money)

Working second job on a public holiday

Deebahhs — Thu, 26 Dec 2019 06:46:04 GMT

I work full-time in an office and casual at a restaurant on the weekends.
I will be paid by my office employer for the public holidays this season because they fall on workdays.
My casual restaurant employer has asked me to work on said public holidays. Am I allowed to work my casual job on a day that my fulltime employer has paid me for? (Eg. Christmas Day, New Year's Day, etc)

Re: Working two jobs and claiming tax free threshold from lower paying job?

macfanboy — Thu, 26 Dec 2019 05:17:59 GMT

(1) Tax withheld on $50,000 is $7,797 but don't forget the Medicare levy of 2% so an extra $1,000 = $8,797.

However, because of low & low to middle-income tax offsets calculated when you lodge your tax return, you will owe $1,300 less so $7,497 is owed with $8,797 paid so $1,300 refund.

(2) If you don't claim the tax free threshold then the company will not tax you at the highest rate but as following:

$0 - $37,000 = 19%

$37,001 - $90,000 = 32.5%

etc

This is not including the Medicare levy.

Look at the withholding tables for fortnightly pay under with tax-free threshold and No tax-free threshold

https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/Fortnightly-tax-table-from-1-July-2018.pdf

These tables will include Medicare Levy

Re: Working two jobs and claiming tax free threshold from lower paying job?

alexanderu — Thu, 26 Dec 2019 05:02:18 GMT

Thanks for the clarification, but I'm still a bit confused. I've been told the following:

"Consider job 1 @ $50K on its own. A $50K income puts you at an effective tax rate of ~15.6% [$0*(18K/50K) + $0.19*((37K-18K)/50K) + $0.325*((50K-37K)/50K)]. So from every paycheck, the company may withhold lets say 17% to help ensure you can cover your income taxes.

At the end of financial year, you owe tax of $7797, but the company has withheld a total of $8500 -> you get a refund of $703

Now add job 2 @ $58K. On its own, the $58K income puts you at an effective tax rate of ~17.9%.

As do you do NOT claim the tax-free threshold from the second job, the company knows this means you have another source of income, and so what they instead do is withhold income at the highest marginal tax rate possible for you to be charged, which is 45%. So from your $58K, the company may withhold $26,100.

At the end of the financial year, between both jobs you've had withheld $34,600. But an income of $108K puts you at a tax rate of ~25.4%. So you actually owe as income tax $27,457. You get a return of $7143 and owe no additional money."

Is this correct or not? Sorry, this is all new to me hence the questions really appreciate it

Thank you!

Re: Working two jobs and claiming tax free threshold from lower paying job?

macfanboy — Wed, 25 Dec 2019 23:15:34 GMT

Sorry but it looks like you have misunderstood.

The tax-free threshold is on the first $18,200 that you receive, not per job.

This is made up of any type of income; wages, bank interest, Centrelink payments etc.

You can't really have it for the first job for 1/2 year earning at least $25,000 and then change it to the second job without incurring a large tax debt.

You will basically be undertaxed, received extra money now and then have to repay it later.

I would be eliminating the tax-free threshold from both jobs.

Like I said your end of financial year tax obligations is determined by your total taxable income if you haven't paid enough you will have a tax debt.

In the extremely unlikely situation that you have paid too much, it will be returned to you.

Re: Working two jobs and claiming tax free threshold from lower paying job?

alexanderu — Wed, 25 Dec 2019 12:40:40 GMT

OK Thanks, that makes a lot more sense!!
I will go ahead and change the tax-free threshold from the $50,000 job to the $58,000 job.

But if you don't mind me asking, why do I have to change job #1 to no tax free threshold for the remainder of the year? Like what difference does it make, as you mentioned the other job won't know how much to tax me, and I'll still expect a tax bill at the end of the year anyway? (Sorry if it sounds like a stupid question!)

Cheers!!!

Re: Working two jobs and claiming tax free threshold from lower paying job?

macfanboy — Wed, 25 Dec 2019 04:24:57 GMT

You are correct but please understand that just because you don't claim the tax-free threshold from the second job doesn't mean that the second job will tax you enough.

All they can do is to tax you at 19c from $0 to $37,000 and then 32.5c from $37,001 until $90,000.

So based on Your scenario and no deductions or hecs debt:

Job 1 will tax you $8,797 when you will owe $7,467 (thanks to tax offsets).

Job 2 will tax you $15,015.

So you will pay a total of $23,812 when on a total taxable income of $108,000 you will owe $29,077

So you will be short by $5,265.

Tax is calculated on total taxable income.

Job #2 has absolutely no idea how much extra to tax you because (a) They don't know and (b) There is no easy method for them to do it.

It will probably help if you change Job #1 to no tax-free threshold for the remainder of the year.

Or you could have Job #2 also take extra out each pay period.

If you don't then expect a tax bill.

Working two jobs and claiming tax free threshold from lower paying job?

alexanderu — Wed, 25 Dec 2019 00:37:44 GMT

Hello,

I have two jobs. To keep the figures simple, lets say the jobs pay (rough figures):
Job A: $50,000/Year
Job B: $58,000/Year

I started Job A in June, and when I filled out the tax file declaration, I said that I was claiming the tax free threshold (TFT) for Job A. I didn't start job B until October, so when I filled out the declaration, I said I did NOT want to claim the TFT for Job B even though it was a higher paying job.

The ATO recommends that I claim the TFT from the highest paying job. But since both jobs are paying over the threshold, is there any real need for me to change my TFT from job B to job A?

I've paid tax over the TFT for Job A, and tax starting from $0 from job B. So from my knoweldge, at the end of the FY, both payment will be lumped together, so it doesn't really matter who I'm claiming the TFT correct?

Thanks!

Re: Threshold income

macfanboy — Mon, 23 Dec 2019 01:07:46 GMT

Impossible to answer that question.

Tax is calculated on total taxable income for the financial year, not whether you have 1,2 or 3 jobs or if they are casual or not.

Threshold income

Munni — Sun, 22 Dec 2019 18:25:45 GMT

Hi
May i know how much tax i will pay on my second part time job ( 15 hrs fortnight) when my first job is casual ( hours depends 3-21 hrs fortnight). Thanks 😊

Re: winning from gamble

Angeleyes560 — Fri, 20 Dec 2019 18:18:01 GMT

If you win a lottery or money from a casino,it's yours,it comes under pleasure and recreational fun,they can not tax you on a casino win,or lottery same as a inheritance hope this helps

Re: Selling on ebay as a hobby initially then has grown into selling like a business

macfanboy — Wed, 11 Dec 2019 07:33:33 GMT

It is entered as Item 15 Business income - direct selling.

All expenses are then put in there to reduce the taxable income.

Re: Selling on ebay as a hobby initially then has grown into selling like a business

jayh084 — Wed, 11 Dec 2019 06:31:52 GMT

macfanboy

My issue is how to do the amendment. What do i select for other income etc.

Re: Selling on ebay as a hobby initially then has grown into selling like a business

macfanboy — Wed, 11 Dec 2019 03:51:18 GMT

You need to amend your 2019 tax return ASAP.

This should include all of your sales and expenses.

Selling on ebay as a hobby initially then has grown into selling like a business

jayh084 — Wed, 11 Dec 2019 02:55:22 GMT

Last year I started selling some of the machines and accessories I had collected over the years. By the years end I had upgraded to an ebay store and had sales totaling in 20k.

Aloong with the sales on ebay I was selling the copper I recycled from the electerical machines and components. This generated about 45k.

What should I do about my tax situation? I have lodged my tax return and wish to amend it.

Re: Mystery Shopper

macfanboy — Tue, 10 Dec 2019 04:14:59 GMT

Seek a private ruling from the ATO.

They are free and then you will be 100% sure.

Normally, a hobby is something that you do occasionally and not for profit.

Most will pay back what expenses they have incurred.

https://www.business.gov.au/Planning/New-businesses/Difference-between-a-business-and-a-hobby

Re: Mystery Shopper

Salbro — Tue, 10 Dec 2019 03:23:57 GMT

Most mystery shoppers seem to be supplying a statement by supplier and ticking they are a doing it as a hobby. This is also what one company has recommended. I’m hesitant to just go off this though.
How can I get a definitive answer on this?

Re: Mystery Shopper

macfanboy — Tue, 10 Dec 2019 02:19:55 GMT

Not really a hobby, you wouldn't do it for $0 income?

Yes I would apply for an ABN and I would declare this as PSI income and also claim deductions against the income.

Mystery Shopper

Salbro — Tue, 10 Dec 2019 01:38:14 GMT

I am thinking of signing up to be a mystery shopper.
Am I able to sign a statement by supplier indicating this is a hobby or am I required to apply for an ABN? I would expect to earn a maximum of $400 per month.
I already earn over the tax free threshold, does this affect my income from mystery shopping?
Thanks!

Re: Traineeship and second job

LukeS — Mon, 09 Dec 2019 02:47:35 GMT

Hello ,

Welcome to our Community!

has put through a great explanation and questions you need to ask yourself in relation to your income. Here is our information from our website on the topic of Claiming the tax-free threshold.

If you're an Australian resident for tax purposes, the first $18,200 of your yearly income isn't taxed. This is called the tax-free threshold. You can claim the tax-free threshold to reduce the amount of tax that is withheld from your pay during the year.

The $18,200 tax-free threshold is equivalent to:

$350 a week
$700 a fortnight
$1,517 a month.

You may be paid by two or more payers at the same time. For example, you may:

have two jobs
receive a taxable pension or government allowance and also have a regular part time job.

If you have more than one payer at the same time, we generally require that you only claim the tax-free threshold from the payer who usually pays the highest salary or wage.

Your second payer is required to withhold tax at the higher, 'no tax-free threshold' rate. The same applies to any additional payers. This reduces the likelihood of you having a tax debt at the end of the financial year.

If you're certain your total annual income from all payers will be less than $18,200 you can claim the tax-free threshold from each payer.

If you do this, and your total income later increases to above $18,200, you'll need to provide a new Withholding declaration to one of your payers to stop claiming the tax-free threshold from that payer.

Luke S

Re: Mobile Phone Selling

macfanboy — Sun, 08 Dec 2019 07:14:45 GMT

The moment that you take it seriously and make an effort to actually make money.

At the moment, it seems that you are basically only recovering your expenses.

Mobile Phone Selling

karondo — Sun, 08 Dec 2019 00:18:17 GMT

Hi guys,

Question for you. I've just recently start to buy and sell mobile phones and tablets on ebay and repair them as a hobby. I'm making a loss at the moment (only by a couple of hundred dollars), but enjoy it as I enjoy taking things apart and learning, and I'm under the impression that I don't have to register for an ABN at the moment as I'm treating it as a hobby not a business. However I am keeping records of what I'm buying and selling (such as parts etc) so I can keep track of where I am. I also think I can ramp it up a bit more and if I put my mind to it I could make some good money.

At what point should I get an ABN? When do I say, yeah actually, I think I need an ABN? And if I don't ramp it up and just keep it as it is, do I have to declare the loss as part of my tax return? Obviously if I made a profit it would go under my personal tax return, but what if I make a loss and spend more money on it than I make?

Any help would be great!

Thanks

Matt

Re: Which tax calculation option should I choose?

LukeS — Fri, 06 Dec 2019 07:51:14 GMT

Hello

Welcome to our Community!

When you are calculating how much you should be being taxed you can use our Tax Tables. There are options for weekly, fortnightly and monthly. Each also show what you should be getting taxed if you claim the tax free threshold or not.

If you hold two jobs and your overall income will be under $18,200 you can claim the tax free threshold from both employers. We have some good information on our website regarding this.

LukeS

Re: I want to change my threshold tax fee

macfanboy — Fri, 06 Dec 2019 07:20:17 GMT

So you are confident that by changing you won't end up with a large tax bill?

Re: I want to change my threshold tax fee

Anil_Katukuri — Fri, 06 Dec 2019 05:57:26 GMT

Hii actually I am doing two jobs,but more tax is cutting in my second job my new job than first job,I am getting good pay in second job so I want to change it as my primary job for tax threshold free.How can I change

Re: I want to change my threshold tax fee

macfanboy — Fri, 06 Dec 2019 04:49:22 GMT

As long as you have calculated that you will pay enough tax from both jobs at the end of the financial year yes you can.

I would be very careful because without due consideration and calculation you could end up with a tax bill.

I want to change my threshold tax fee

Anil_Katukuri — Fri, 06 Dec 2019 04:33:02 GMT

Hii I want to change my second job as threshold tax pay and primary account can I

Re: Which tax calculation option should I choose?

macfanboy — Thu, 05 Dec 2019 06:44:11 GMT

Nobody can answer this question because we don't know how much you will be earning from either job or by the end of the financial year/

Which tax calculation option should I choose?

asb4010 — Thu, 05 Dec 2019 06:35:07 GMT

I'm currently employed for a job which is very casual and I'm not sure which tax calculation option I should choose. I'm also still in the middle of finding another casual/part-time job which will provide me with a more steady income which will become my main job that I will claim the tax free threshold for.

Re: ABN for a one time job?

NateH — Thu, 05 Dec 2019 03:50:00 GMT

Hi ,

Yes, that would be good solution for this.

Thanks, NateH

Re: Traineeship and second job

macfanboy — Tue, 03 Dec 2019 21:18:37 GMT

There is no first, second, third job tax rate.

You are taxed on your total taxable income at the end of the financial year.

There are various cumulative tax rates.

As you can see, the first $18,200 you don't pay any tax.

Because of this people with several jobs claim the tax-free threshold from the highest paying job, because it gives them more benefit.

This means that if they don't claim it for the others, the only thing the pay office can do, because they don't know exactly how much they will earn in total from all sources for the financial year is to tax them with no tax-free threshold.

This quite often is not enough.

Your total taxable income includes $1,000 x 13 (6 months?) + $120 to $300 x 52 + top up payments from centrelink.

So $13,000 + $15,600(max) + ? from centrelink.

Without knowing exactly how much you will earn and if you have claimed, the tax-free threshold from BOTH jobs, it is difficult to answer, but I would suggest that you can't claim it from the second job you are earning too much.

This will change next financial year, depending on circumstances.

Traineeship and second job

Sapphyrerose — Tue, 03 Dec 2019 19:19:29 GMT

Hi I have been doing a traineeship and working a second job on the weekends as the traineeship wage I could never survive off. I also get top up payments from centerlink if my incime is under a certain amount for the fortnight as im a single mum .I get on average $1000 a fortnight from my traineeship and anywhere from 120 a week up to 300 a week in my second job.My traineeship was only for 6 months Do I have to pay the 2nd job tax rate ?

Re: Travel between one job to a second job

macfanboy — Tue, 03 Dec 2019 01:35:37 GMT

No, like I said it is your choice to work far away from home.

If you were a sole trader in business and travelled overnight for work you could because that is a business expense.

Employees can not as they don't have to except by choice.

Re: Travel between one job to a second job

wiz — Tue, 03 Dec 2019 01:14:46 GMT

But not accomodation if travelling directly between two jobs.

Re: Travel between one job to a second job

macfanboy — Tue, 03 Dec 2019 01:15:05 GMT

Yes if you directly go from Job A to Job B you can claim the KMS in between.

https://www.ato.gov.au/uploadedFiles/Content/IND/Downloads/car-expenses.pdf

Re: Travel between one job to a second job

wiz — Tue, 03 Dec 2019 00:31:29 GMT

Working far away from my second job. Is that not similar from going from Job-1 to Job-2 and claiming car travel?

Re: Travel between one job to a second job

macfanboy — Mon, 02 Dec 2019 23:11:52 GMT

Absolutely not.

Your job doesn't require you to work away overnight, you choose to work far away from your job.

Many people choose to work interstate and have to pay for accommodation whilst away, it is still not claimable because it is their choice to live/work so far away.

Re: Travel between one job to a second job

wiz — Mon, 02 Dec 2019 21:49:34 GMT

Would long distance between the two jobs constitute a overnight trip ?

Re: Travel between one job to a second job

macfanboy — Mon, 02 Dec 2019 21:22:09 GMT

It may be reasonable but not tax-deductible.

Accommodation is only tax- deductible if it is required to earn income like overnight trips for work.

Re: Travel between one job to a second job

wiz — Mon, 02 Dec 2019 15:10:06 GMT

Say the first job is a 7 hour shift and then going to a second job - an 8 hours shift - at some point between the two or after the second job its reasonable that i would need to rest at an accomodation.

Re: Travel between one job to a second job

macfanboy — Mon, 02 Dec 2019 02:50:02 GMT

Going between jobs is claimable.

What is the accommodation expense for?

Travel between one job to a second job

wiz — Mon, 02 Dec 2019 00:25:35 GMT

If go from home to work (administration) and from my work go to a second work (construction). Can i claim the travel between the two jobs and if so can i claim accomodation expenses.

Re: ABN for a one time job?

DuncanS — Sun, 01 Dec 2019 01:43:28 GMT

Paul,

Does the ATO believe that a Statement by a Supplier and Invoice is the appropriate way to handle the issue?

Duncan

Re: 2 jobs

macfanboy — Fri, 29 Nov 2019 23:42:39 GMT

Don't worry most people work to survive and on much less than you

You are taxed on your total taxable income from all sources minus any work related deductions.

You can not pay too much tax, you can pay a lot because you are earning a lot.

Any excess that you don't need to pay will be returned to you.

If you claim the tax-free threshold (which you should) on the 80k job you will pay $18,067 at the end of the financial year assuming you worked for the full financial year.

Now your new job, assuming it starts Jan 1 to June 30, 2020 you will earn 9k (50% of 18k).

Now you definitely don't want to claim the tax-free threshold with this job as you will owe a lot of money in tax.

Therefore, they will tax you at the next tax rate instead which is at 19 cents per dollar - this will not be enough because any amount that you earn over your 80k (from your first job) has to be taxed at 32.5 cents per dollar up to 90k.

So an extra 9k will be taxed at 19% instead of 32.5%.

Correct amount of tax = $21,172 for total taxable income.

Your shortfall = $1,395

So as well as not claiming the tax-free threshold, you can request to have another $108 taken out every fortnight for 13 pays. ( 6 months) via a PAYG withholding variation

Or you could just pay the extra when you have lodged your tax return.

https://www.ato.gov.au/Rates/Individual-income-tax-rates/#Residents

2 jobs

Nounours — Fri, 29 Nov 2019 20:12:12 GMT

I have been appointed to a part time position ( 4 days) and I'm looking at finding another job to fill 1 day.

I'm scared to pay too much tax as I'm a single parent and I am trying to work to provide my children and settle in life!

If estimate figure
1st job 80k
2nd job 18k

How will it work?

What is the tax free threshold, I don't want to be debt as well as paying too much tax. I'm working to survive!!!

Re: ABN for a one time job?

PaulM — Thu, 28 Nov 2019 23:24:31 GMT

Thanks for your question. I think the information on paying volunteers may have the answers you seek.

Regards

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