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• How much tax should I pay on a second job? Claiming the tax-free threshold

  Working more than one job? Find out how to fill our your TFN declaration to try and avoid a big bill at tax time.If you have more than one job, understanding how much tax to pay – and whether to claim the tax-free threshold – is important to avoid an unexpected tax bill. In Australia, the tax-free threshold is usually claimed from only one employer, but what you earn from a second job is still taxable and may be withheld at a higher rate. This article explains how tax works when you have a second job, when you should or shouldn't claim the tax-free threshold, and how PAYG withholding is calculated. It also outlines what to consider if your income changes during the year. ### Why does it feel like I pay more tax on my second job than my first job? You don’t pay extra tax for having a second job. You pay the same amount of tax whether you earn $1000 a week through having a single job or multiple jobs. However, it can look like you're being taxed more because of the way the tax-free threshold works. When you do your tax return, we add all your income together and calculate the tax you need to pay based on your __total income__. To help make sure your employers withhold enough tax from your take home pay, you should claim the tax-free threshold from only your main employer, and not claim it from any other employers. Say you’re already claiming this tax-free threshold from your first employer and you get a second job. Your first employer won’t withhold tax from the first $18,200 you earn each year. However, your second employer will withhold tax from the first dollar you earn. This is why it can _feel_ like you’re paying more tax on your second job. Here are some examples of what [income from more than one job](https://www.ato.gov.au/Individuals/jobs-and-employment-types/Working-as-an-employee/Income-from-more-than-one-job/) can look like. You can use the ATO’s online [tax withheld calculator](https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC/questions#TWC/questions) to find out how much tax should be withheld from your total income. ### I don't think I will earn over $18,200. Can I claim the tax-free threshold for both jobs? If your total annual income will be less than $18,200, you can claim the tax-free threshold from both jobs. Keep in mind that if you earn more than $18,200, you’ll likely receive a tax bill at the end of the year. ### My extra income comes from my side hustle, how does tax work? We've got an article just for you, have a read of [Tax tips for managing your side hustle.](https://community.ato.gov.au/s/article/a079s000000ZeJFAA0/tax-tips-for-managing-your-side-hustle) ### Can I change which job I'm claiming the tax-free threshold for? Yes, you can! When you switch jobs or get a second job and want to change you can use our online services to change which job you claim the tax-free threshold for at any time. To do this: - Visit [myGov](https://my.gov.au/LoginServices/main/login?execution=e1s1) and go to ATO online services - Under the __Employment__ menu, go to __New employment__ - Complete the Withholding declaration online Alternatively, you can complete a paper form and provide it to your employer. To do this: - Complete a [Withholding declaration](https://www.ato.gov.au/Forms/Withholding-declaration/) with your correct details - Go to Question 5 ‘Do you want to claim the tax-free threshold from this payer?’ - Select whether you want to claim the tax-free threshold or not If you stop working for an employer, you don’t need to do anything. You will automatically stop claiming the tax-free threshold from them when they stop paying you. ### How can I figure out my residency for the tax-free threshold? Only Australian residents for tax purposes can claim the tax-free threshold. If you start or stop being an Australian resident for tax purposes during the income year, you’ll receive a part-year tax-free threshold. Non-residents for tax purposes can’t claim the tax-free threshold and must pay tax on every dollar they earn. We have information and decision tools to help you work out if you’re a resident for tax purposes. Use them to help you understand if you can claim the tax-free threshold: 1. If you’re in Australia for a working holiday [read this information](https://www.ato.gov.au/Individuals/Ind/Resident-for-tax-if-WHM-/). 2. If you’re in Australia for any other purpose use [this tool](https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=AreYouAResident&anchor=AreYouAResident&anchor=AreYouAResident/questions#AreYouAResident/questions). 3. If you’re leaving or have left Australia, use [this tool](https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=DORSLA&anchor=DORSLA/questions#DORSLA/questions). [Residency for tax purposes](https://community.ato.gov.au/s/article/a07RF00000GjNz8YAF/working-out-your-tax-residency-and-what-it-means-for-you) is different to residency for immigration purposes.

  

  Article by ATO Community
  15 Apr 2026

• Spouse details and your tax return

  Wondering why you need to include your spouse’s income on your tax return? You may be entitled to tax offsets, rebates or reductions.When you lodge your tax return, you may need to provide spouse details, even if your spouse doesn't work or you have separate finances. We use this info to work out your eligibility for certain tax offsets, Medicare levy reduction, or the Medicare levy surcharge. A spouse is anyone you've lived with in a genuine domestic relationship at any point during the year. This includes de facto and same-gender couples. If you're not married, you may still have a spouse for tax purposes. ### Do I have to include my spouse's income in my tax return? Yes, even if you keep your tax affairs or finances separate from your spouse, you'll still need to provide us with their income information. We need this information to work out whether you: - need to pay the full [Medicare levy](https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Medicare-levy/) or the [Medicare levy surcharge](https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Medicare-levy-surcharge/) - are entitled to tax offsets such as the [seniors and pensioners tax offset](https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/tax-offsets/seniors-and-pensioners-tax-offset/#:~:text=The%20maximum%20seniors%20and%20pensioners,maximum%20offset%20is%20%241%2C602%20each.), [super contributions on behalf of your spouse tax offset](https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/tax-offsets/superannuation-related-tax-offsets/#:~:text=You%20can%20claim%20the%20maximum,income%20is%20%2437%2C000%20or%20less.), [zone and overseas forces tax offsets](https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/tax-offsets/zone-and-overseas-forces-tax-offsets/), [invalid and invalid carer offsets](https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/tax-offsets/offset-for-maintaining-an-invalid-or-invalid-carer/#:~:text=You%20can%27t%20claim%20the,23%20is%20more%20than%20%24104%2C432.) - are entitled to a [private health insurance rebate.](https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Private-health-insurance-rebate/) ### What if my spouse is a foreign resident for tax purposes? Even if your spouse is a foreign resident for tax purposes, you need to declare that you have a spouse. You also need to include their global income in the spouse income disclosures on your tax return.  ### What if I don't know my partner's income details? If you can't access your partner’s income details, you can make a reasonable estimate of these amounts.  You can use information like: - your spouse's payment summaries from their employment - documents that outline any taxable government payments they received from Centrelink - bank or dividend statements. ### What if I separated from my spouse or started a new relationship? If you’ve __separated from your spouse__ during the financial year and no longer live together, here’s what to do: - Select ‘yes’ to the question asking if you had a spouse at any time in the financial year, - In the next section, select ‘add/edit’ spouse details, - Select ‘no’ to the question asking if you had a spouse for the full year - Enter the dates you were together during the financial year. If you had __more than one spouse__ during the financial year, complete this section with the details of your latest spouse. For example, the spouse you were in a relationship with on 30 June.

  

  Article by ATO Community
  24 June 2026

• Setting up an ATO payment plan

  Learn how to manage your existing ATO payment plan or set one up.Need to pay your tax bill but struggling to work out how you’re going to pay it off in time? We know this can be stressful. If you find yourself in this situation, we’re here to help. Can’t pay your tax bill in full? You may be eligible to set up a payment plan. This will allow you to pay in instalments over time, ideally over the shortest possible period. This article explains how to manage your tax debt with a payment plan, including how to check if you’re eligible for an ATO payment plan. Keep in mind, payment plans accrue interest. So, if you’re able to pay in full and on time, it’ll save you from paying extra in interest in the long run. Tax bill caught you off guard? We’ve explained [some of the reasons why you might receive a tax bill](https://community.ato.gov.au/s/question/a0JRF000003dOn72AE/p00388029) in our article. ### How do I set up an ATO payment plan? If you’re experiencing financial difficulties and need to set up a payment plan, the easiest way is to use our online services. You may be able to set up a payment plan online if: - You don’t already have an active payment plan on the same account. - Your tax account isn’t on hold. For example, from being in insolvency or lodging a dispute. - The amount you owe is between $1 and $200,000. Check out our info [before you set up a payment plan](https://www.ato.gov.au/individuals-and-families/paying-the-ato/help-with-paying/payment-plans#Importantinformationfortaxpayersentering). Don’t forget - payment plans accrue interest. If you can pay in full and on time, it’ll save you in the long run! To set up a payment plan online, you’ll need to have your ATO account linked to your myGov. From the menu select __Tax > Payments > Payment plans__. This will bring up the 'Payment plans' screen allowing you to select the button to __Add__ a payment plan. Online services for business can also be used to set up a payment plan. Details can be found under [Accounts and payments menu](https://www.ato.gov.au/online-services/businesses-and-organisations-online-services/account-and-payments-in-online-services-for-business?anchor=Paymentplans%22%20\l%20%22Paymentplans1) If you can’t set up a payment plan online, you will need to contact us. ### How much do I pay and how often? We have a handy [payment plan estimator](https://www.ato.gov.au/calculators-and-tools/payments-payment-plan-estimator) to help you work out what you can afford. You can also use the [Money Smart budget planner](https://www.ato.gov.au/calculators-and-tools/payments-payment-plan-estimator) to help understand your overall financial position. When you set up your payment plan you can set up payments to be weekly, fortnightly, monthly, or pay a lump sum. To start your payment plan you’ll need to make an up-front payment followed by regular instalments. To keep you from paying too much interest, complete your payment plan in the shortest possible timeframe that fits with your circumstances. ### If I have an ATO payment plan, will my tax refund be used to pay off the debt? Yes. If you’ve got a debt with us, we’re required by law to use any credits or refunds to pay off or reduce what you owe. Keep in mind, this won’t replace your required payment plan instalments. In some cases, we can also use credits you get from other government agencies to pay off your debts. In some circumstances we’ll also use your refund to pay other Australian Government agencies if you owe them money. If there are any credits left over once all your debts are paid, we’ll refund them to you. ### How can I change an existing ATO payment plan? The same way you’ve set it up – by heading online to use our [online services](https://www.ato.gov.au/online-services). When you view your payment plan online, you can choose the option __Update payment plan__. This allows you to change the date and/or the amount for each instalment. If you want to modify a payment date, amount or cancel an instalment online you’ll need to do this: - one business day before the instalment date, if the payment method is direct debit via credit or debit card - 3 business days before the instalment date, if the payment method is direct debit via your bank accounts. Sometimes modifying a payment plan isn’t an option. In that case you may have to cancel your existing payment plan and start a new one. If you do this online, you may have to make another upfront payment. __Note:__ you won’t be able to make changes online if your current plan is longer than 24 months, or if the changes will extend the plan more than 24 months. ### Can I change the payment method used for my ATO payment plan online? Yes, you can [manage your payment plan online](https://www.ato.gov.au/individuals-and-families/paying-the-ato/help-with-paying/payment-plans?anchor=Managingyourpaymentplan#Managingyourpaymentplan). You can change from direct debit to another method. Remember to allow at least __3 business days__ for the request to process. You can also unlink your payment plan from one credit or debit card to another. ### Why isn't my extra payment showing up on my ATO payment plan? Our systems aren't instant. They don't check for payments before the due date. It should be visible on your statement of account but won't deduct from your payment plan until your regular payment date. If you make a payment over the Christmas period, it won't process until we return in the new year. Don't worry, we don't count this as a late payment. ### What should I do if I've missed a payment on my ATO payment plan? We recommend setting up direct debits to pay your due amount a couple of days early to avoid missing a payment. Prefer manual payments? You can set up SMS reminders when you start your payment plan. If it's a single payment that's defaulted, your account may show up as in arrears. You can make a catch-up payment before your next payment is due. ### Does the ATO charge interest on payment plans? Yes, that's why we encourage you to pay in full and on time if you're able to. General interest charge (GIC) will start accruing from when your original bill was due. To minimise how much GIC you'll need to pay, it's best to complete your payment plan in the shortest timeframe you can. To learn how we work this out, check out our info on [GIC rates](https://www.ato.gov.au/tax-rates-and-codes/general-interest-charge-rates). ### What happens to my ATO payment plan when I've paid my tax bill? Good news! Your payments will stop automatically from our end. If you have direct debits set up, you should cancel those with your bank. Our systems may take some time to show your plan as paid off. Don't worry, we don't charge interest after you've made your final payment.

  

  Article by ATO Community
  5 Nov 2025