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Re: Changing jobs in the middle of the tax year.

Newbie

Views 867

Replies 4

Hi,
I have been working for my previous employer until March this year. And I filled out the TFN declaration form there as my 1st job when I first started in 2013. ( income is 42K) But, I started working at another place from March this year (income is 22K) and didn't work for my previous employer since then. I noticed that tax have been diducted at 30% from my new job even though it is my only job. The previous employer is a nursing agency, so It's not that I resigned but, I simply didn't work there afterwords. Is this the correct rate that tax should be deducted since I did only one job at a time even though I worked for two different employers one after the other.
Many thanks in advance.
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn

Replies 0

@DarshR 

 

You are taxed on your total taxable income, so if you have paid too much tax will be returned to you when you lodge a tax return.

 

Yes, you can claim the tax-free threshold from your new employer because you are not earning any money from the old employer.

 

4 REPLIES 4

Superuser

Replies 3

Hi @DarshR,

 

Thank you for your question!

 

If you have more than one payer at the same time, we generally require that you only claim the tax-free threshold from the payer who usually pays the highest salary or wage.

If you no longer work for your previous employer OR you you simply havent worked there over a period of time, you will need to fill out a new Withholding declaration form (NAT 3093) if you want to claim the tax free threshold. You can also fill this out through ATO online services linked to myGov. This reduces the likelihood of you having a tax debt at the end of the financial year.

 

Hope this helps!

Newbie

Replies 2

With regards to your reply I would like some further clarification on this.
Am I still eligible to claim the tax-free threshold from my previous payer even If I no longer work there?
On what percentage I should be paying tax from my gross income of my new job? The reason because is it had been 30% ever since I started even it is the only place I work and had been working since I started this new job. Isn't it meant to be less than that?
Kind regards

Superuser

Replies 0

Hi @DarshR,

 

Yes, you can continue to calim he tax-free threshold from your previous payer even If you no longer work there but are still employed. If you have more than one payer at the same time, we generally require that you only claim the tax-free threshold from the payer who usually pays the highest salary or wage.  

 

You are being taxed at the higher rate percentage because you haven't claimed the tax-free threshold. If you are generating the most income from your new job I would assume you would want to claim the tax-free threshold for that employer and reduce the amount of tax being withheld from your new employer.

 

Hope this helps!

Most helpful response

Taxicorn

Replies 0

@DarshR 

 

You are taxed on your total taxable income, so if you have paid too much tax will be returned to you when you lodge a tax return.

 

Yes, you can claim the tax-free threshold from your new employer because you are not earning any money from the old employer.