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Re: How much tax do I pay when I work 2 jobs; one as a casual and one as sole trader?

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I work as a casual employee at a fast food restaurant. PAYG tax is set up and is taken out when I earn over a certain amount. I know also have my own ABN as I work as a sole trader as a carer but there is no PAYG tax set up. I am trying to figure out how much tax I need to pay for the money that I earn as a sole trader so that I can start to put that money aside for when it comes time to do my tax return. 

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Hi @mconnposp,

 

Welcome to our Community!

 

@Nicholas has provided some helpful information, we just wanted to add some extra links to resources which may help further.

 

You can use our tax withheld calculators to help work out the amount of tax you have pay, and information about pay as you go instalments to make regular payments towards an expected annual income tax liability from a business or investment income.

 

If you have further questions you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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It depends on what tax bracet you'll be pushed into by your sole trader income, and whether your sole trader income has many expenses.

The tax rate between $18,201- $37,000 is 19%, while the tax rate from $37,001-$90,000 is 32.5%

 

For example, if you earned $25,000 as a fast food employee, and then your overall sole trader income (after associated expenses) was $5000, then the tax attributed to your sole trader income would be 19% of $5000 = $950.

 

Without knowing the full details, I'd probably say anywhere between 20-30% would be a safe bet. Just as a final note, if your sole trader income is significant, you might be forced into making tax payments quarterly (PAYG Instalments), so you dont get stuck with a big bill at the end of the year. 

 

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @mconnposp,

 

Welcome to our Community!

 

@Nicholas has provided some helpful information, we just wanted to add some extra links to resources which may help further.

 

You can use our tax withheld calculators to help work out the amount of tax you have pay, and information about pay as you go instalments to make regular payments towards an expected annual income tax liability from a business or investment income.

 

If you have further questions you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.