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C_D_J(Newbie)Newbie
20 May 2026

I am about to start a second job. I have worked nearly a full year in my current role earning 60k odd so far. When I start my second job I will stay in my old role 1 day a week. Now with the tax free threshold $18k, do I tick no in my second job as my old role will mean I would have earnt more there in this financial year. But from here on in I will earn way more in the second role so part 2 of my question is would I then tick yes for my second role once the new tax year rolls around and change my old job to no. Very confused, hope this makes sense.

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5 replies
56 views
5 replies

All replies

SHhu(Enthusiast)Enthusiast
20 May 2026

Hello,

You can tick yes for your new employer and notify your current employer to not claim tax free threshold so that they withhold more payg once you start your new role. Hope this helps.



Liked by C_D_J and KevColl
TaxTalk1234(Master)Master
20 May 2026

Be aware that when someone has more than 1 job and the combined income from these jobs exceeds $45k, they will usually end up with a tax bill if they claim the tax free threshold at one of the jobs. That is because the second job is starting withholding at 17% but it will actually be taxed at 32% as total income exceeds 45k

TaxTalk1234(Master)Master
20 May 2026

@C_D_J

You have three main options

1) if you can work out what your tax for each paycheck should be based on the total

amount you will be paying for the year vs the amount actually being taken out and are disciplined enough, you could put the difference between the two aside each paycheck.

2) you could just be prepared for the fact that you will likely have a bill; or

3) you could choose not to have the tax free threshold taken out of either job and that might get you close to the right amount (no guarantees though as it depends what your total income for the year will be vs incomr from each job)

Liked by C_D_J
RachelATO(Community Moderator)Community Moderator
21 May 2026

Hi @C_D_J,


You can only claim the tax-free threshold from one employer at a time, and it's best to claim it from the job where you earn the most income. Since you've already earned around $60,000 from your current role this financial year, you should keep claiming the tax-free threshold from that job, even though you'll only be working there one day a week.


Your second employer will withhold tax from the first dollar you earn with them. This might look like you're paying more tax on that job, but when you lodge your tax return, we'll add all your income together and work out the correct tax based on your total earnings.


When the new financial year starts, you can change which employer you claim the tax-free threshold from. If your second job becomes your main source of income, you can claim the tax-free threshold from that employer and stop claiming it from your old job. To make this change, provide each employer with a new withholding declaration.


We've got more info on our website about how tax works with multiple jobs or change of job.

Liked by C_D_J

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Which Job Should I Claim the Tax‑Free Threshold On When I Have Two Jobs? | ATO Community