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Tax amount on second job if it’s under ABN?

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Newbie

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Hi,

I have 2 jobs. My first one I am an employee earning 1200 per month after tax. Second one I am earning 3000 per month under an ABN so currently not paying tax until EOFY.

I’m wondering how much tax I will eventually have to pay on second job if its under an ABN? Will I be taxed more on this? And if so how can I swap the jobs around so I get taxed more on my first employee job?

Any reply will be helpful, Thankyou!!
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Best answer

Taxicorn

Replies 0

You are taxed on your total taxable income.

 

For your normal job, presuming $0 deductions, earning $1,200 per month = $14,400 Taxable Income = No tax or Medicare Levy

 

Now add in your ABN work $3,000 per month = $36,000 Taxable income, again presuming $0 deductions.

 

$14,400 + $36,000 = $50,400 taxable income.

 

Tax on $50,400 = $7,927

Medicare Levy = $1,008 (assuming no dependants)

= $8,935 total taxes.

 

However, there would be Low-income tax offset of ($244) and a Low-to-middle tax offset of ($1,080) and a Small business tax offset of ($452.97) = $1,776.97

 

So $8,935 - $1,776.97 = $7,158.03 is the tax you will need to pay.

 

You can ask for a PAYG withholding variation form from your normal job and not claim the tax-free threshold but this will mean only $2,636 will be withheld as tax and you will still owe $4,522.03 ($7,158.03 - $2,636)

 

Or you could ask for x amount to be withheld instead, but not knowing your total taxable income (job - deductions + ABN - deductions) I can't tell you how much.

 

2 REPLIES 2

Champion

Replies 0

Hi Julie1975,

 

To be clear, you will pay the same total amount of tax regardless of whether you "swap the jobs around" or not. The difference will be that more tax will be withheld during the year from your wages so you have less to pay at year end.

 

$1200pm + $3000pm = around $48k of income total. Work out the tax on $48k, deduct from that the amount of tax being withheld from your wages, result is the amount of tax you will have to pay at year end.

Best answer

Taxicorn

Replies 0

You are taxed on your total taxable income.

 

For your normal job, presuming $0 deductions, earning $1,200 per month = $14,400 Taxable Income = No tax or Medicare Levy

 

Now add in your ABN work $3,000 per month = $36,000 Taxable income, again presuming $0 deductions.

 

$14,400 + $36,000 = $50,400 taxable income.

 

Tax on $50,400 = $7,927

Medicare Levy = $1,008 (assuming no dependants)

= $8,935 total taxes.

 

However, there would be Low-income tax offset of ($244) and a Low-to-middle tax offset of ($1,080) and a Small business tax offset of ($452.97) = $1,776.97

 

So $8,935 - $1,776.97 = $7,158.03 is the tax you will need to pay.

 

You can ask for a PAYG withholding variation form from your normal job and not claim the tax-free threshold but this will mean only $2,636 will be withheld as tax and you will still owe $4,522.03 ($7,158.03 - $2,636)

 

Or you could ask for x amount to be withheld instead, but not knowing your total taxable income (job - deductions + ABN - deductions) I can't tell you how much.

 

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