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How often can I change my tax-free threshold

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Hi there! 

I have one casual job (job A) but have recently acquired a second casual job (job B). 

Currently, I am claiming the tax free threshold at Job A and the no tax free threshold at Job B. This was because Job A was paying me more at that time than Job B. 

Now, my hours at job B have increased and as a result job B is providing me more income than job A. I have read that the tax free threshold should usually be claimed at the employer which pays you more. 

My question is how often am I able to switch tax free thresholds from one employer to another? I am unsure as to whether or not Job B will continue to pay me more than Job A, however in the event that my income from Job A starts paying me more than Job B, am I able to revert my tax free thresholds from both emplyers again? 
I am unsure as to whether there is a limit on how often I can submit a new WIthholding Declaration form to both of my employers.

Thank you for all your help!


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Hi @sharpie101,

 

Welcome to our Community!

 

There is no limit on how often an employee can provide their employer with a Withholding declaration form, as long as the information provided on the form is true and correct.

 

A Withholding declaration should be completed when:

  • an employee starts with an new employer and they wish to claim a tax offset as a reduced amount withheld from the employer, or
  • where the employer has previously completed a TFN declaration with a current employer and wants to: 

                  ◦advise the payer they have become, or ceased being, an Australian resident for tax purposes 

                  ◦claim or discontinue claiming the tax-free threshold

                  ◦advise their payer about their Higher Education Loan Program, or
                  ◦claim their entitlement, or variation, to tax offsets.

You need to ensure enough tax has been withheld from your pay to cover your end of year tax liability.

 

If you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

1 REPLY 1

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @sharpie101,

 

Welcome to our Community!

 

There is no limit on how often an employee can provide their employer with a Withholding declaration form, as long as the information provided on the form is true and correct.

 

A Withholding declaration should be completed when:

  • an employee starts with an new employer and they wish to claim a tax offset as a reduced amount withheld from the employer, or
  • where the employer has previously completed a TFN declaration with a current employer and wants to: 

                  ◦advise the payer they have become, or ceased being, an Australian resident for tax purposes 

                  ◦claim or discontinue claiming the tax-free threshold

                  ◦advise their payer about their Higher Education Loan Program, or
                  ◦claim their entitlement, or variation, to tax offsets.

You need to ensure enough tax has been withheld from your pay to cover your end of year tax liability.

 

If you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.