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If you have more than one job, understanding how much tax to pay – and whether to claim the tax-free threshold – is important to avoid an unexpected tax bill. In Australia, the tax-free threshold is usually claimed from only one employer, but what you earn from a second job is still taxable and may be withheld at a higher rate.

This article explains how tax works when you have a second job, when you should or shouldn't claim the tax-free threshold, and how PAYG withholding is calculated. It also outlines what to consider if your income changes during the year.

Why does it feel like I pay more tax on my second job than my first job?

You don’t pay extra tax for having a second job. You pay the same amount of tax whether you earn $1000 a week through having a single job or multiple jobs. However, it can look like you're being taxed more because of the way the tax-free threshold works.

When you do your tax return, we add all your income together and calculate the tax you need to pay based on your total income.

To help make sure your employers withhold enough tax from your take home pay, you should claim the tax-free threshold from only your main employer, and not claim it from any other employers.

Say you’re already claiming this tax-free threshold from your first employer and you get a second job. Your first employer won’t withhold tax from the first $18,200 you earn each year. However, your second employer will withhold tax from the first dollar you earn. This is why it can feel like you’re paying more tax on your second job.

Here are some examples of what income from more than one job can look like.

You can use the ATO’s online tax withheld calculator to find out how much tax should be withheld from your total income.

I don't think I will earn over $18,200. Can I claim the tax-free threshold for both jobs?

If your total annual income will be less than $18,200, you can claim the tax-free threshold from both jobs. Keep in mind that if you earn more than $18,200, you’ll likely receive a tax bill at the end of the year.

My extra income comes from my side hustle, how does tax work?

We've got an article just for you, have a read of Tax tips for managing your side hustle.

Can I change which job I'm claiming the tax-free threshold for?

Yes, you can! When you switch jobs or get a second job and want to change you can use our online services to change which job you claim the tax-free threshold for at any time. To do this:

Alternatively, you can complete a paper form and provide it to your employer. To do this:

If you stop working for an employer, you don’t need to do anything. You will automatically stop claiming the tax-free threshold from them when they stop paying you.

How can I figure out my residency for the tax-free threshold?

Only Australian residents for tax purposes can claim the tax-free threshold. If you start or stop being an Australian resident for tax purposes during the income year, you’ll receive a part-year tax-free threshold.

Non-residents for tax purposes can’t claim the tax-free threshold and must pay tax on every dollar they earn.

We have information and decision tools to help you work out if you’re a resident for tax purposes. Use them to help you understand if you can claim the tax-free threshold:

Residency for tax purposes is different to residency for immigration purposes.

Liked by Janey8
baddieboy123(I'm new)I'm new
21 May 2025

Hi,

I am 15 turning 16 soon. I will have two traineeships when i am 16, equaling about 66 hours per week. Traineeship A will make about 700 weekly and the other about 2000 fortnightly. I dont understand which one i declare as the tax-free one and how the whole thing works. I haven't payed tax at Traineeship A while being a casual worker as i haven't worked enough. So i dont even know what any of the process is, pls help me!! i have seen tax table stuff but have no idea how it works, thanks for ur help in advance

Brandon_Lu(I'm new)I'm new
9 Dec 2024

Hello there,

I have question regarding tax-free threshold on a new casual position work that commencing soon, which will be my second casual (B) to my current first casual (A) job.

For my B casual job, I am wondering what I should do with claiming the tax-free threshold. Like when and how I have to do this?

At the meantime, I have not yet submit the Tax Declaration Form to my employer for the B casual job.


Please kindly help me out with this and I thank you for your time ahead.

Have a good one, cheers.

emily360(I'm new)I'm new
19 Nov 2024

Hello

I currently have 3 jobs

Job A - Part time (earn over $18200)

Job B - Part Time (earn under $18200)

Job 3 - Casual (work very intermittently)


Im just wondering which jobs I claim my tax free threshold on or how it is best to do this?

rahn_butters(Newbie)Newbie
21 Oct 2024

If I work at job A where I receive $2,521 net a fortnight and job B where receive $1,672 net a fortnight and both jobs are at the same pay rate and for both I will earn over $18,200, do I not claim tax free threshold for both or for only one? I have used the tax tables for both fortnightly tax and fortnightly study fees and its coming back that I would pay $924 in tax across both. However, I did the same calculations but where I claim the tax free threshold on both jobs I am paying more tax. I am super confused on how much tax I should pay to ensure I don’t get a tax bill at the end of year

Charlotte678(I'm new)I'm new
18 Aug 2024

Just to clarify, if I change my tax free threshold on the ATO website I do not need to notify my employers?

How will they be aware of the change, or does it not matter?

lauren674(Newbie)Newbie
15 Aug 2024

So. I am going to start a new job at Job B, and I am currently working at Job A. In Job A I am currently claiming the tax-free threshold as I earn less than $18,200 in a financial year. Now, there will be an overlap of ending Job A and beginning Job B. In the long run (by the end of financial year), Job B will have paid more, however I will not be working at Job A anymore. So I'm just wondering if I need to tell my employer at Job A to no longer claim the tax-free threshold, or if for the short amount of time they can both be claiming the tax free threshold before I leave Job A.


I'm not sure if that makes any sense. But I guess I'm just asking if there is a need to change the claiming of tax-free threshold of Job A even though the payments made to me will cease by the end of the year?

adeng(I'm new)I'm new
12 June 2024

To keep it simple, if I was to get paid net $1000 a week at job A and net $2000 fortnightly at job B what would my tax look like, combined it would be looking at over 100k a year. Thanks!

TonyD4(Newbie)Newbie
26 May 2024

I currently work full time and claim the tax free threshold. I also have two negatively geared properties that collectively make a loss of about $15,000 a year and have work related expenses and donations totalling about $2000 to $3000 per year.


I’m thinking about getting a second job to work after hours that will likely generate about $300-350 per week before tax ($15,600 to $18,200 per year).


Can I claim the tax free threshold for both jobs, given that I’ll likely still be getting a tax refund anyway?

apod(I'm new)I'm new
29 Feb 2024

Hello ATO,


This financial year I have worked job A, earning $37.7k gross and claiming tax-free threshold. I no longer hold this job.


I am now about to start job B. It’s a full time job paying $80K gross. My calculations show me that job B will earn me approx $26,664 gross for the remainder of this financial year (4 months from March to June).


Can I claim tax-free threshold for this new job B as I wouldn’t have held the 2 jobs at the same time?


thank you


subudhungel(I'm new)I'm new
17 Feb 2024

Hi ATO Support,


I am writing to seek clarification on how income is calculated and taxed for individuals who have worked for only 6 months in a year.


Specifically, I have been employed for six months from January within a given tax year, would my income be assessed and taxed on an annual basis, considering the entirety of the year's earnings, or would it be calculated solely based on the six months of employment?


I earn $600-700 per week that accounts to total of less than $18,200 in 6 months. I have two tax-free threshold payer, so do i need to change 'NO' to second payer if i have earned less than $18,200 from January within this tax year?

Laybag(I'm new)I'm new
30 Jan 2024

If I select tax free threshold on both jobs but I earn significantly less on the second. Is my employer required to withhold tax?


my second employer didn’t withhold tax and I now have a debt with the ato because of it. Does it matter if I selected the tax free threshold for both jobs ?

ED_03(I'm new)I'm new
10 Dec 2023

I am employed in 2 places, and about to start a new job. I don’t work at these places simultaneously, they are both alternating seasonal jobs. I claim tax free threshold on my first one that I already have, but can I claim it on my other that I am about to start because I won’t make over $18200 with both jobs?

tharakacosta(I'm new)I'm new
26 Nov 2023

Hi, I am currently doing my first job which gives me fewer hours per week and I am not claiming the tax-free threshold from it. Now I got another job and I am claiming the tax-free threshold from this job which gives me more hours per week. I have no idea do I need to change anything about this claiming the tax-free threshold. Can you give an answer to that?

my second question is do I need to pay more tax from my second job when I am earning more than $1000 per week?

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How much tax should I pay on a second job? Claiming the tax-free threshold | ATO Community