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 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