Implication of change in tax-free threshold Employer

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 · Accepted Answer

JodieR_ATO · Answer

If your income from both jobs will fall below $18200 (https://community.ato.gov.au/s/article/a079s0000009GmuAAE/how-much-tax-should-i-pay-on-a-second-job-claiming-the-taxfree-threshold), you can request the tax-free threshold from both employers. If you already completed a tax declaration with employer B, you could update this with a withholding declaration (https://www.ato.gov.au/Forms/Withholding-declaration/) advising your employer you want to claim the tax-free threshold through them. Your employer B would then change the withholding rate from your pay. If your income will be above $18200 but you'd prefer the tax-free threshold from Employer B, you can also give a withholding declaration to employer A, advising you don't want to claim the tax-free threshold. Once you lodge your return with us after the end of the FY, we'll work out your overall taxable income and the amount of tax payable. If your employers have withheld too many tax credits, you'd get a refund when you receive your NOA, so long as you don't have any other govt debt.

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