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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 can look like.

You can use the ATO’s online tax withheld calculator 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.

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:

Alternatively, you can complete a paper form and provide it to your employer. To do this:

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:

Residency for tax purposes is different to residency for immigration purposes.

Liked by Janey8
baddieboy123(I'm new)I'm new
21 May 2025

Hi,

I am 15 turning 16 soon. I will have two traineeships when i am 16, equaling about 66 hours per week. Traineeship A will make about 700 weekly and the other about 2000 fortnightly. I dont understand which one i declare as the tax-free one and how the whole thing works. I haven't payed tax at Traineeship A while being a casual worker as i haven't worked enough. So i dont even know what any of the process is, pls help me!! i have seen tax table stuff but have no idea how it works, thanks for ur help in advance

RachelATO(Community Moderator)Community Moderator
23 May 2025

Hi @baddieboy123,


2 traineeships at once is a great effort!


When you lodge your tax return, your yearly income is all the salary & wages you've been paid, over the year. The amount you receive from both jobs is combined to get your taxable income. This is how we work out how much tax you need to pay.


You can choose which employer you claim the tax-free threshold with. You'll just need to provide a withholding declaration. When you have more than one job, you would generally claim the tax-free threshold from the employer that pays you the most.



Brandon_Lu(I'm new)I'm new
9 Dec 2024

Hello there,

I have question regarding tax-free threshold on a new casual position work that commencing soon, which will be my second casual (B) to my current first casual (A) job.

For my B casual job, I am wondering what I should do with claiming the tax-free threshold. Like when and how I have to do this?

At the meantime, I have not yet submit the Tax Declaration Form to my employer for the B casual job.


Please kindly help me out with this and I thank you for your time ahead.

Have a good one, cheers.

BrookeATO(Community Support)Community Support
16 Jan 2025

Hi @Brandon_Lu


If you've already claimed the tax-free threshold for casual job A, you'd want to make sure you don't claim it for casual job B. This way the second job will withhold more tax to cover your higher earnings.

emily360(I'm new)I'm new
19 Nov 2024

Hello

I currently have 3 jobs

Job A - Part time (earn over $18200)

Job B - Part Time (earn under $18200)

Job 3 - Casual (work very intermittently)


Im just wondering which jobs I claim my tax free threshold on or how it is best to do this?

AnitaATO(Community Support)Community Support
20 Nov 2024

Hi @emily360,


Wow they must keep you very busy.


You can only claim the tax-free threshold for one of the jobs. We do suggest claiming this on the one where you'll earn the most income. The other 2 jobs you won't claim the tax-free threshold.

rahn_butters(Newbie)Newbie
21 Oct 2024

If I work at job A where I receive $2,521 net a fortnight and job B where receive $1,672 net a fortnight and both jobs are at the same pay rate and for both I will earn over $18,200, do I not claim tax free threshold for both or for only one? I have used the tax tables for both fortnightly tax and fortnightly study fees and its coming back that I would pay $924 in tax across both. However, I did the same calculations but where I claim the tax free threshold on both jobs I am paying more tax. I am super confused on how much tax I should pay to ensure I don’t get a tax bill at the end of year

AnitaATO(Community Support)Community Support
21 Oct 2024

Hey @rahn_butters,


It doesn't matter how much you earn if you have 2 jobs you should only claim the tax-free threshold from one of them. This is to ensure you don't get a tax bill when you lodge your tax return.


If you happen to have too much tax withheld it will be refunded back to you.

Charlotte678(I'm new)I'm new
18 Aug 2024

Just to clarify, if I change my tax free threshold on the ATO website I do not need to notify my employers?

How will they be aware of the change, or does it not matter?

AnitaATO(Community Support)Community Support
19 Aug 2024

Hi @Charlotte678,


Yes, you'll still need to notify your employer to make them aware. If you do it online it gives you the option to print it at the end so you can pass it on to your employers. They'll also need to update the info within their payroll software.

Liked by Charlotte678
GregP(Dynamo)Dynamo
22 Aug 2024

There are two different issues there. The first issue is how much tax you will be paying from the second job. The second issue is how much will be withheld by your employee. The first issue was addressed in detail (depends on your income, residency, HELP debt, etc.) I thinks the second issue was not addressed. The payroll systems are using ATO provided Schedule and formulas to calculate your withholding rates. The only 3 factors being put in are - whether you are claiming the threshold, where you are a resident/holiday maker/non-resident and whether you have HELP debt. That's it. Your second employer's payroll office doesn't know anything about your other income, so in a majority of cases your withholding is smaller than it should be and when you lodge your tax return it will probably be an unpleasant surprise. To avoid it, talk to your second employer's payroll office and ask to vary PAYGW rate.

lauren674(Newbie)Newbie
15 Aug 2024

So. I am going to start a new job at Job B, and I am currently working at Job A. In Job A I am currently claiming the tax-free threshold as I earn less than $18,200 in a financial year. Now, there will be an overlap of ending Job A and beginning Job B. In the long run (by the end of financial year), Job B will have paid more, however I will not be working at Job A anymore. So I'm just wondering if I need to tell my employer at Job A to no longer claim the tax-free threshold, or if for the short amount of time they can both be claiming the tax free threshold before I leave Job A.


I'm not sure if that makes any sense. But I guess I'm just asking if there is a need to change the claiming of tax-free threshold of Job A even though the payments made to me will cease by the end of the year?

AnitaATO(Community Support)Community Support
19 Aug 2024

Hi @lauren674,


You can only claim the tax-free threshold from one employer at one time. If you claim it with both its likely, you'll end up with a debt when you lodge your tax return.


If you claim it with Job B, then you'll need to submit a new withholding declaration to Job A. Advising you'll no longer be claiming the tax-free threshold. This way you won't need to change it with Job B when you do finish up with Job A.


Otherwise, if you decide to continue claiming with Job A and not Job B, you'll need to submit a new withholding declaration to claim it when you finish up Job A.

adeng(I'm new)I'm new
12 June 2024

To keep it simple, if I was to get paid net $1000 a week at job A and net $2000 fortnightly at job B what would my tax look like, combined it would be looking at over 100k a year. Thanks!

TonyD4(Newbie)Newbie
26 May 2024

I currently work full time and claim the tax free threshold. I also have two negatively geared properties that collectively make a loss of about $15,000 a year and have work related expenses and donations totalling about $2000 to $3000 per year.


I’m thinking about getting a second job to work after hours that will likely generate about $300-350 per week before tax ($15,600 to $18,200 per year).


Can I claim the tax free threshold for both jobs, given that I’ll likely still be getting a tax refund anyway?

Deb_ATO(Community Support)Community Support
29 May 2024

Hi @TonyD4


Yep, you can claim the tax-free threshold from multiple employers. We just normally wouldn't recommend it, but it's totally up to you.

lladrocat(Newbie)Newbie
29 June 2024

To help with cash flow, you could also lodge a pay as go withholding variation so that you can be taxed less during the year instead of having to wait until tax time to get your refund.

You need to estimate carefully though because you don't want to end up with an unexpected tax bill at the end of the year.

Sometimes though, depending on when your property bills are due, some people prefer to have the refund at tax time.

apod(I'm new)I'm new
29 Feb 2024

Hello ATO,


This financial year I have worked job A, earning $37.7k gross and claiming tax-free threshold. I no longer hold this job.


I am now about to start job B. It’s a full time job paying $80K gross. My calculations show me that job B will earn me approx $26,664 gross for the remainder of this financial year (4 months from March to June).


Can I claim tax-free threshold for this new job B as I wouldn’t have held the 2 jobs at the same time?


thank you


subudhungel(I'm new)I'm new
17 Feb 2024

Hi ATO Support,


I am writing to seek clarification on how income is calculated and taxed for individuals who have worked for only 6 months in a year.


Specifically, I have been employed for six months from January within a given tax year, would my income be assessed and taxed on an annual basis, considering the entirety of the year's earnings, or would it be calculated solely based on the six months of employment?


I earn $600-700 per week that accounts to total of less than $18,200 in 6 months. I have two tax-free threshold payer, so do i need to change 'NO' to second payer if i have earned less than $18,200 from January within this tax year?

CaroATO(Community Support)Community Support
19 Feb 2024

Hi @Subudhungel,


When you lodge your annual tax return, you'll tell us about your income and expenses for a 12-month period starting from1 July, when the financial year starts.


If you know for the financial year you're total income is going to be less than $18,200, then you can look at claiming the tax-free threshold for all employers.


Let's say you claim the tax-free threshold for all employers and your total income is over $18,200. In this scenario this'll significantly increase the likelihood of us asking you to pay more tax when you lodge your tax return.


Check out our tax tables to help you work out how much tax should be withheld from your pay. There's also a really cool calculator you can use.


You might want to let one employer know by completing a withholding declaration form if you want to change to or from the tax-free threshold.

Laybag(I'm new)I'm new
30 Jan 2024

If I select tax free threshold on both jobs but I earn significantly less on the second. Is my employer required to withhold tax?


my second employer didn’t withhold tax and I now have a debt with the ato because of it. Does it matter if I selected the tax free threshold for both jobs ?

ED_03(I'm new)I'm new
10 Dec 2023

I am employed in 2 places, and about to start a new job. I don’t work at these places simultaneously, they are both alternating seasonal jobs. I claim tax free threshold on my first one that I already have, but can I claim it on my other that I am about to start because I won’t make over $18200 with both jobs?

tharakacosta(I'm new)I'm new
26 Nov 2023

Hi, I am currently doing my first job which gives me fewer hours per week and I am not claiming the tax-free threshold from it. Now I got another job and I am claiming the tax-free threshold from this job which gives me more hours per week. I have no idea do I need to change anything about this claiming the tax-free threshold. Can you give an answer to that?

my second question is do I need to pay more tax from my second job when I am earning more than $1000 per week?

missmilly2221(I'm new)I'm new
4 Nov 2023

Dear ATO Support,


I am seeking clarification on this particular topic.


I have Job 1 that is my main income and I claim the tax free threshold. It’s part-time and earns me just less than 35,000 a year. My Job 2 is casual and the yearly earnings always varies, but will most likely generate less income than Job 1.

First Question: In terms of the tax rate for Job 2, what rate should I withheld tax from in order to not be in tax debt by tax time? I am estimating the income to be less than Job 1 per year, and my overall yearly earnings to be more than 45,000 for the tax bracket. I will also mention if it matters, that for Job 2 I will claim lots of work related deductions.

Second Question: What will happen if my Job 2 at a point may generate more income then Job 1? Does anything change in particular or do I have to record anything differently? I don’t want to misjudge / miscalculate anything and be in debt when it comes time.


I’m unfamiliar with tax and especially for 2 incomes, so I hope you can help me with this!

eebeebeebee225(I'm new)I'm new
25 Oct 2023

Hi,

I have my main full-time job in which I claim yes to the free threshold and yes to HECS debt <75000 annual pay. My second role is a casual job where the hours vary - I have selected NO to the tax free threshold as pays are usually gross $500-1000 per fortnight.


My question is - does selecting NO to the tax free threshold and yes to HECS debt on my tax form with the second employer mean my tax include hecs repayments?


I assume it wouldn't based off the pay being less than the HECS debt compulsory repayment threshold of about 50k. I have selected to pay an extra 10% of tax at this casual role to accomodate for that however am unsure if that percentage is right and am scared about getting a tax bill for 2023-2024FY.

Bluey23(I'm new)I'm new
18 Oct 2023

Dear ATO Support,

I am still confused about the ‘Tax-free Threshold’.


I have held a casual job for years and have recently picked up a part-time job in September, so into the 23-24 FY. As of today, my total gross income is $6,540.60 and my tax withheld is currently $452.


I currently claim the ‘Tax-free Threshold’ from both employers as I wasn’t aware that I could only claim from 1. My concern is that I will owe a large sum for being undertaxed. I also have not told my first employer that I have a second job as I will lose shifts being a casual. My understanding is that I need to fill in a form for my employers saying that I will no longer claim the ‘Tax-free Threshold’, is this correct? Is there a way to change my options without having to notify my employer?


Additionally, It is unclear to me what happens when you don’t claim the ‘Tax-free Threshold’. What is the process? And what’s the difference?


Thanks.

buncha(I'm new)I'm new
12 Oct 2023

Hi,


I'm confused about whether or not I can claim tax free on my income.


I started with 2 jobs, both casual employment, Job A I claimed tax free and Job B I didn't.

I quit Job A and started Job C but it's through a contract (I have an 'employer' but payments are made to me as a sole trader ABN)

But I kept Job B and didn't claim tax free.


So from my understanding, I have 1 "job" and 1 contract, so can I claim tax-free for my 1 job?


Hope it's not too confusing, thanks in advance!

newvegas5(I'm new)I'm new
8 Oct 2023

Hi,


I have two jobs at the same hospital with 2 different pay rates and 2 different payslips with the same PAYID.


1st Job : I current make around 65,000 a year

2nd Job : I would estimate it around <30,000 a year


I am a bit unsure about this situation with the same hospital, will I still need to claim the tax threshold on the 1st job then?

Rockett2424(I'm new)I'm new
13 Sept 2023

Ok so wondering if there is a bit of help here for my situation please?


I work a normal main job - wage $133k

I am starting my own 2nd job, subcontracting my skillset. Expected turnover is approx $100k


Am I best to just set aside 50% of this Subcontracting gig for tax, and if I overpay, it will be sorted out at tax time?


Id rather overpay and claim back, than underpay and owe you know, and to keep it simple, 50% seems to fit easy enough?


Thoughts or advice please?


Ta.

cecebee(I'm new)I'm new
24 July 2023

My second employer did my tax incorrectly - didnt ask for a TFN declaration and has me as claiming the Tax free threshold even though they knew it was a second job and I couldnt claim it. When i went to ATO website it didnt have any details for this employment so I manually added it and then DID check the tax free threshold because I had left my other job. However due to the 22-23 financial year incorrect taxing i owe the ATO $2000. How can I fix this?

becki.w(I'm new)I'm new
10 July 2023

When you don't claim the tax free threshold on a second job, should you be taxed 19% or 32.5%? I had a second job and they have taxed me 19%, but because of my first job, I think they should have taxed me 32.5%. Should I have requested the higher tax rate on the second job to ensure I would be paying the right amount?

Jay_T(I'm new)I'm new
3 July 2023

So I worked 3 jobs over the last year, and have taxed everything correctly according to the ATO. However I have still ended up with a $4000 bill... I don't understand how this has happened? Also worth noting total taxable income was less than $70k, with 50k from my first job which has the tax free threshold, and both other jobs paid full tax. I just feel like this is a crazy amount to owe when I've done it all correctly, and it's barely enough money to survive this current economy to begin with. Any advice?

MichaelN9(I'm new)I'm new
25 June 2023

Hi, I am fairly confused about the income from 2 jobs situation.


Next financial year I will earn $15,000 from one job. And then $30,000 from another job.

Am I able to claim the tax-free threshold from the job where I earn $15,000 so that it is tax-free come July 2024? And then allow the job where I earn $30,000 to be taxed by the second income bracket (19c over $18,200). Or does it not matter because the cumulative income is too much?

colincorgi(I'm new)I'm new
18 June 2023

Hi, I just want to ask how much tax I need to pay on a second job without the tax-free threshold.

My primary income from my first job will be $1448 a fortnight and I will claim the tax-free threshold. My second job/income will be paid weekly and will be $573.55? To ensure I am being taxed accurately for my total income bracket for both jobs, how much/what per cent tax will I need to nominate to pay on the second income? Thanks 🙂

em5600(I'm new)I'm new
13 June 2023

Hello!

I started a new job at the beginning of May but have stayed employed at my old job until settled in. I have not received any income from my old job since starting the new job, and I am claiming the tax-free threshold for both jobs. I thought because I am only getting one income from the new job I can claim it, and as I have no income from the previous job it wouldn’t matter. Is this correct or do I need to stop claiming from the new job? As I have earned well over $18,200 at my old job and will not earn more at the new job by the end of the financial year. Thankyou

kimserv(Enthusiast)Enthusiast
24 May 2023

Hi, I acquired a second job during the latter half of the financial year. I thought I was going to be earning more from the second job so when I started the second job, I sent a new tax file declaration form to my first job to start NOT claiming the tax-free threshold from that income. But now, as the financial year is about to end, if I compare the total gross income from the two jobs, my first job still has the higher amount. So far, the total gross in the first job is around $23,000 while the total gross in the second job is around $10,000. Should I switch which job claims the tax-free threshold--meaning should I claim the tax-free threshold again from the first job? Thank you.

jordynn8(Newbie)Newbie
3 May 2023

i have 3 jobs (one i started in feb)

for the job I started in feb I am not claiming the tax freethrehold and am getting taxed like 20%

for the other two, I am claiming a taxfree threshold because I barely work at the 3rd job (I have only earnt $3000 this tax year at third job)

and the second job is my highest paying...

i will probably earn $1000 over the $18200 threshold from all 3 jobs combined this tax year...

what will happen with the two jobs I have claimed tax-free threshold on will I be owing a lot of money ?


thanks!

ab_207(I'm new)I'm new
5 Apr 2023

I've recently gotten a new job but as I was doing the onboarding for the new job I was still an employee for my old job (which I was claiming the tax free threshold on). For the new job I claimed the tax free threshold as well. Do I have to do something to resolve this? I have already resigned from the previous job, as I did not intend to work both jobs at the same time.

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