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Re: Tax on second job

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Hi, I have recently started a new job and have claimed my tax free threshold on my 1st job , , I am just a little concerned that i will still end up getting a big tax bill at the end of the year because  the 2 jobs seperately will fall into lower tax brackets than the 2 added together, should iask to pay a higher tax rate on my second job and is this even possible ??

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Hi @ktricky

 

Welcome to our Community!

 

Generally speaking, it all depends on what you think your total income to be at the end of the financial year. If you think your income from both jobs will be less and $18,200 then you may be able to claim the tax-free threshold from both payers. However, if your income will be higher, then it's best to only claim the tax-free threshold from the payer who pays you the most. 

 

If you receive the most pay from payer 1, you should claim the tax-free threshold from them and claim no tax-free threshold with payer 2. This will advise payer 2 to withhold tax at a higher rate from pay so enough tax is withheld for tax obligations at the end of the financial year. If you claimed the tax-free threshold from payer 2, you can advise them you no longer wish to claim the threshold by completing a withholding declaration form

 

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

 

Thanks, JodieH. 

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Megastar

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Hi, 

You can vary your tax withheld by submitting a PAYG withholding application to ato

Here is the link for details 

https://www.ato.gov.au/Forms/PAYG-withholding-e-variation/

 

But as per me the easier way will be to withdraw the tax free threshold from your first job. This way your employer will deduct higher tax from your net pay.

 

Hope it helps   

Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @ktricky

 

Welcome to our Community!

 

Generally speaking, it all depends on what you think your total income to be at the end of the financial year. If you think your income from both jobs will be less and $18,200 then you may be able to claim the tax-free threshold from both payers. However, if your income will be higher, then it's best to only claim the tax-free threshold from the payer who pays you the most. 

 

If you receive the most pay from payer 1, you should claim the tax-free threshold from them and claim no tax-free threshold with payer 2. This will advise payer 2 to withhold tax at a higher rate from pay so enough tax is withheld for tax obligations at the end of the financial year. If you claimed the tax-free threshold from payer 2, you can advise them you no longer wish to claim the threshold by completing a withholding declaration form

 

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

 

Thanks, JodieH.