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Tax Free Threshold and same job

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Newbie

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Bit of an odd circumstance; I've had my job since the beginning of the financial year and earned over $20k from it, having applied the tax free threshold. I had to go overseas for a bit and when I came back a couple months ago, I found that I had to be rehired for my job. I now have the same job but with a completely new work ID and everything. I ticked to apply the tax free threshold when reapplying to this job too.

My question is: does it matter which of the 'jobs' I apply the tax free threshold to and if so how would I go about changing it to only affect one of them?
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Best answer

Community Support

Replies 0

Hi @JL41,

 

Thanks for your question.


Essentially you have only had one job at a time. So you are able to apply the tax free threshold to each job.


Your income is added together at the end of the financial year and tax calculated on the annual amount.


Hope this helps.


KylieS

 

 

 

 

 

2 REPLIES 2

Champion

Replies 0

Hi @JL41 

 

Your taxable income is calculated annually for tax purposes.

Your Wage and PAYG will be calculate based on the period of the payroll - be that weekly, fortnightly, monthly and so on.

 

Effectively your circumstances shouldn't cause any tax issues.

 

Let's say you earned $20k and paid $500 in tax, you then earn an additional $1000 in a week and $178 is taken out for tax. That makes your YTD income and tax $21,000 & $678 respectively. 

If you were to then stop earning income and report that amount for your tax return your taxable income would be $21,000 and whatever the corresponding tax amount is will be specific to your circumstances, deductions or whatever else. The difference would be either a refund or payable.

This is not financial advice and should not be treated as such.

Best answer

Community Support

Replies 0

Hi @JL41,

 

Thanks for your question.


Essentially you have only had one job at a time. So you are able to apply the tax free threshold to each job.


Your income is added together at the end of the financial year and tax calculated on the annual amount.


Hope this helps.


KylieS

 

 

 

 

 

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