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Owen92(Newbie)Newbie
14 Dec 2023

Hi,

Im currently working two jobs, one is a full time job which gives me around 50,000 income, the other casual job I would be earning around 1000 a month. Do I need to claim tax-free threshold from my full time job employer? If I don’t claim tax-free threshold from both jobs, will that affect my tax payable for the financial year? I’m really confusing right now and hope the issue can get fixed asap. Thank you.


kind regards,

4,947 views
3 replies
4,947 views
3 replies

Most helpful response

Most helpful reply

ChantelleATO(Community Support)Community Support
14 Dec 2023

Hi @owen92


When you have more than 1 job, it's always best to claim the tax-free threshold on the job that pays the most income, and not claim on the smaller income.


Here is a link that will explain things a little better for you.

All replies

Taxduck(Taxicorn)Taxicorn
14 Dec 2023

The tax system is cruel. On your second job you are paying 34.5% tax and Medicare Levy. On $12,000 that's $4140 in tax. If you claim the tax free threshold on your full time job and not claim on your second, come tax time with no other income and without any deductions or tax offsets you will end up with about a $1500 payable (bill). If you are aware that you may end up with a tax bill at the end of the year and can plan accordingly then this may be the preferred option. You can always maximise deductions (e.g. add $4400 to super and claim a tax deduction, then this will cover that $1500 bill)

Taxduck(Taxicorn)Taxicorn
14 Dec 2023

If you claim the tax free threshold on your $12,000 job and don't claim the tax free threshold on your $50,000 job you will have $14040 tax withheld. On $62,000 you pay $11857 in tax and Medicare levy. That's a refund of $2183 (will be higher with deductions and any available offsets). Your choice. Healthy refund and less income or more income and a bill.

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Should I claim the tax-free threshold if I have two jobs? | ATO Community