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How much tax do i pay on a second job

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Newbie

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Hi, I have a second job and would like to know how much more tax I will have to pay?

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ATO Certified

Initiate

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The answers provided are right.  When you fill out the tax declaration form don't tick the tax free threshold box.

 

To work out the amount you can use this calculator - https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC#TWC/questions

 

When you lodge a tax return for that financial year the ATO will look at what you've earned overall and calculate how much you should have paid and refund any excess you've paid.  If you claim the tax free threshold on multiple jobs you will usually end up with a tax bill however if you only do this on one job then generally you shound end up with a small refund (depending on your other tax affairs).

 

Please note; 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

 

19 REPLIES 19

Newbie

Replies 0

The ATO app has a calculator that can show the tax withheld. Make sure you dont claim the tax free threshold.

Initiate

Replies 8

If you can give me a specific number of your second job wages, I can help you to work it out.

Newbie

Replies 1

Thanks for your reply. Sure, thing. I work part-time in my 2nd job at Shell petrol station. I make a consistent extra $400 per week gross. So what would be the tax on this? Thanks for your help.

Best answer

ATO Certified

Initiate

Replies 4

The answers provided are right.  When you fill out the tax declaration form don't tick the tax free threshold box.

 

To work out the amount you can use this calculator - https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=TWC&anchor=TWC#TWC/questions

 

When you lodge a tax return for that financial year the ATO will look at what you've earned overall and calculate how much you should have paid and refund any excess you've paid.  If you claim the tax free threshold on multiple jobs you will usually end up with a tax bill however if you only do this on one job then generally you shound end up with a small refund (depending on your other tax affairs).

 

Please note; 

This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

 

Initiate

Replies 0

Thanks @NathanBurgess, it is a very useful link.

 

@mac_a_rhyme I put your number in the other tool as well http://www.paycalculator.com.au/ , $400 per week, ticked No-Tax Free Threshold. Tax withholding is $3,952.00 annually. 

 

Let me know if you need any clarification

 

 

 

Enthusiast

Replies 1

Hi Mac, 

 

The best way to see what the difference would be is to use the Tax Withheld Calculator on the ATO website. 

It is usually recommended that employees do not choose to claim the tax free threshold on their second job, and this is because if both jobs are trying to account for the first $18,200 of income on which you don't pay tax, your payments probably won't have enough withheld from them to cover your tax debt at the end of the year. 

 

I would recommend having a play with the calculator, and review the thresholds for different tax rates

 

All the best. 

Devotee Registered Tax Practitioner

Replies 0

@mac_a_rhyme @NathanBurgess

 

Mac,

 

In my view every Taxpayer should be aware of the tax rates and thresholds.

 

The main threshold is $87,000.

Between $37,000 and $87,000, the tax rate is 32.5% plus Medicare.

 

If your income is less than $87,000 including your second job and greater than $37,000, then I believe that your second employer should be withholding tax at some 35%.

 

Hope this helps.

 

Duncan Smith

Business Advice + Tax 

I'm new

Replies 3

I also have the same issue. My primary job I earnt $43,000 and paid $6,000 tax (as a rough I don’t have my group certificate in front of me) and my second job I earnt $10,900 and paid $2,500 in tax. I now owe money due to my second job not paying enough tax for me. Can anyone shed some light on what I should be taxed in my second job and what I should have got taxed from the $10,000. Thank you!

Devotee

Replies 2

Hi @Rachelm95 - funny you should ask this! We've just now posted a new Knowledge Base article How much tax should I pay on a second job? that answers exactly that question. Check it out and let us know if you have any other questions. Thanks!

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