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Tax rate on second income

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Newbie

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Hi

 

I'm helping a friend with her tax.  She has two jobs, one earns $42k and the other $16k.  She has selected no tax free threshold on the declaration for the second job but her employer is only deducting tax at the 19% (+medicare).  Because her combined income is over $60k and her first job exceeds the $37k threshold for the lower tax bracket, the tax payable on the second job is 32.5%+medicare.  Because of thehigher rate applicable she ends each year with a significant tax bill.  Is there any way to have her second employer deduct tax at the higher rate?

 

Thanks

Jeff

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Best answer

Taxicorn

Replies 1

 

PAYG withholding Variation to increase the amount of tax witheld.

 

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

 

Not sure what is wrong with getting an interest free loan from the ATO....Smiley Tongue

2 REPLIES 2

Best answer

Taxicorn

Replies 1

 

PAYG withholding Variation to increase the amount of tax witheld.

 

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

 

Not sure what is wrong with getting an interest free loan from the ATO....Smiley Tongue

Newbie

Replies 0

Thanks macfanboy!  I agree, nohting wrong with an interest free loan, just a bit of a shock for her at the end of they year when she gets a big tax bill.  At least I can give her the choice now if she wants to avoid it Smiley Happy

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