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tax rate for 2 jobs

Newbie

Views 402

Replies 5

Hi,

 

I am working permanent part time in one job (3 days a week). Recently, another offered me a permanent part time (2 days a week). 

 

With my first job, I am earning below 45k but now with the second job I will be earning more than 45k. 

 

What tax rate should I be following? Will I be paying more later?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 2

The tax rate is applied to the total taxable income for the year but not per job - you will be taxed according to tax tables for each individual job & so long as you do not apply for the tax free threshold there will be no issues come tax time.

Also the Australian tax system uses marginal rates so you only pay the higher rate for the amount above each tax threshold

5 REPLIES 5

Devotee

Replies 4

You should only claim the tax free threshold from your higher income job to avoid having a big tax bill at the end of the year. Clearly the total tax payable will be greater per year based on your total income

Newbie

Replies 3

Hi SM2304,

 

Thank you for your response. My main concern here is the tax rate. 

 

Here is the current tax rate for this fiscal year:

$18,201 to $45,000 = 19c for each $1 over $18,200

$45,001 to $120,000 = $5,092 plus 32.5c for each $1 over $45,000

 

With just my first, I will be tax 19c per $1. but with my first and second job combine, my income will be over 45k so I should be tax 32.5c per $1. 

 

I'm not sure how that goes with my employers or how that will affect my tax dues.

 

Most helpful response

Devotee

Replies 2

The tax rate is applied to the total taxable income for the year but not per job - you will be taxed according to tax tables for each individual job & so long as you do not apply for the tax free threshold there will be no issues come tax time.

Also the Australian tax system uses marginal rates so you only pay the higher rate for the amount above each tax threshold

Newbie

Replies 1

Let's say, my income for Job A is 30k and for Job B is 20k. So that's 50k in total which is more than 45k.

 

Given that, I should follow the second bracket tax rate which is "$5,092 plus 32.5c for each $1 over $45,000". Is that correct?

 

And just a side note. I claim tax threshold for Job A. 

ATO Community Support

Replies 0

Hi @jaceejoef,

 

The easiest way to work out how much tax you'll have withheld is to use the tax tables, as @SM2304 has suggested.

 

The rates where no tax-free threshold is claimed accounts for the tax free threshold being claimed at your main employment. As an Australian resident, you should claim the tax-free threshold with your main employer, and not with any other source of income.

 

 

Your marginal rate will be calculated once you lodge your income tax return at the end of the financial year. To get an idea of what your tax liability is before then, you can use our income tax estimator.

 

You can find our tax tables and income tax estimator on our website.