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Re: JobKeeper tax free-threshold on second job

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Currently on JobKeeper through original employer.

obtained casual secondary employment.

If jobkeeper is expect to finish in late September (only $9,750 in financial year 20-21) should I claim tax free threshold from secondary employment instead?

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Hi @473X 

Australian residents for tax purposes receive the first $18,200 they earn tax free each year.  This is known as the tax free threshold and equates to receiving the first $350 a week or $700 a fortnight income tax free from your employer.

 

You can only claim this from one employer at a time which means you cannot claim this from a second or subsequent employer.  If you did, it would be double dipping and you would end up getting two tax free thresholds and probably a tax bill at the end of the year. If you're certain your total annual income from all employers or payers will be less than $18,200 you can claim the tax-free threshold from each payer. Read more information about Claiming the tax-free threshold.

 

As you don't claim the tax free threshold from your second employer, any income you receive from them will be taxed from the first dollar – you won’t receive any amount tax free amount from this employer. 

 

You can change which employer you claim the tax free threshold from at any time. As long as you ensure you are only claiming it from one employer at a time, it will be fine.

 

All the best.

 

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

Hi @473X 

Australian residents for tax purposes receive the first $18,200 they earn tax free each year.  This is known as the tax free threshold and equates to receiving the first $350 a week or $700 a fortnight income tax free from your employer.

 

You can only claim this from one employer at a time which means you cannot claim this from a second or subsequent employer.  If you did, it would be double dipping and you would end up getting two tax free thresholds and probably a tax bill at the end of the year. If you're certain your total annual income from all employers or payers will be less than $18,200 you can claim the tax-free threshold from each payer. Read more information about Claiming the tax-free threshold.

 

As you don't claim the tax free threshold from your second employer, any income you receive from them will be taxed from the first dollar – you won’t receive any amount tax free amount from this employer. 

 

You can change which employer you claim the tax free threshold from at any time. As long as you ensure you are only claiming it from one employer at a time, it will be fine.

 

All the best.