You don’t pay extra tax for having a second job. You pay the same amount of tax whether you earn $1000 a week from a single job or across multiple jobs.
When you do your tax return, we add all your income together and calculate the tax you need to pay based on your combined income.
Why does it feel like I pay more tax on my second job than my first job?
If you’re an Australian resident for tax purposes, you don’t have to pay tax on the first $18,200 you earn each year. We call this the ‘tax-free threshold’, which you should generally only claim from one employer at a time.
Say you’re already claiming this tax-free threshold from your first employer and you get a second job. Your first employer won’t withhold tax from the first $18,200 you earn each year. However, your second employer will withhold tax from the first dollar you earn. This is why it can feel like you’re paying more tax on your second job.
I don't think I will earn over $18,200. Can I claim the tax-free threshold for both jobs?
If your total annual income will be less than $18,200, you can claim the tax-free threshold from both jobs. Keep in mind that if you earn more than $18,200, you’ll likely receive a tax bill at the end of the year.
Can I change which job I'm claiming the tax-free threshold for?
Yes, you can change which job you claim the tax-free threshold for at any time. To do this: