30% tax for 2nd job as a work and holiday maker?

 Author: EthanATO(Community Support)Community Support

ATO Certified Response4 Dec 2024

Hi @bluespirit,

It sounds like your second employer isn't registered as a Working Holiday Maker employer. This would explain why they withhold at 30% on their payments to you. You can read a bit more about Working Holiday Maker employer obligations and tax rates on our website.

It being your second job won't automatically result in them taxing you higher. As a Working Holiday Maker (WHM) you're taxed by each registered employer at 15% for the first $45,000 they pay you. If your second employer registers, they'll be able to tax you at the lower rate. When you lodge your tax return for the year if too much was withheld, we'll refund the additional amount back to you.

However, if your employer does register and begins taxing at the lower rate, I'd recommend estimating how much you'll earn in total for the financial year from all of your jobs. The 15% for the first $45,000 from each employer does not consider other jobs you have at the time. If you find that not enough tax will be withheld, you could look at requesting one of your employers withhold at a higher rate to cover the extra amount needed. You can do this by submitting an upwards withholding variation.

Let's say you earn $35,000 from both jobs for the financial year. Your total income would be $70,000 although both employers only taxed you as if you were paid $35,000 and withheld 15%. When you lodge your tax return on an income of $70,000 you should have had 15% withheld for the first $45,000, and 30% withheld for every $1 after. In this situation you would likely have a debt amount due as a result for your tax return. If you submit a variation request one employer would withhold more to cover this, which helps to avoid debt amounts when you lodge.

It can be a little confusing so please let us know if you have any questions!