Working Two Jobs in Australia: How Tax Works

If you are working two jobs, you should claim the tax-free threshold with only one employer. The second employer then withholds tax from the first dollar you earn. It can feel like your second job is “taxed more”, but your final tax depends only on your total income for the year.

Why the second job withholds more

The tax-free threshold ($18,200) can only be used once. Your main employer applies it; your second employer withholds tax as if all your pay were above it. This avoids a bill at tax time.

Example: $40,000 + $20,000

With a main job paying $40,000 and a second job paying $20,000, your total income is $60,000. Your tax for the year is $8,420 plus $1,200 Medicare levy, exactly the same as someone with a single $60,000 job. Take-home pay for the year: $50,380.

Common mistakes

• Claiming the threshold twice: not enough tax is withheld and you receive a bill.
• HELP debt: tick the HELP box with every employer so repayments are covered.
• Super: each employer pays 12% super, so consolidate your funds to avoid double fees.

Other things to know

• You can ask your second employer to withhold extra tax if you expect other income.
• Your combined income may push you above $45,000, where the 30% rate applies.

How withholding works on the second job

When you do not claim the tax-free threshold, your employer withholds tax using the “no tax-free threshold” scale, which starts from the first dollar. On a small second income, this can look like a high rate, but it simply avoids a bill later.

Casual and part-time work

Casual employees receive a loading, usually 25%, instead of paid leave. This is taxed like normal income. If your hours vary a lot, check your withholding occasionally to avoid surprises.

Changing which job gets the threshold

If your second job becomes your main one, submit a new tax file number declaration to each employer to switch where the tax-free threshold is claimed.

Deductions across jobs

You can claim work-related expenses for each job, such as uniforms or tools, if you were not reimbursed. Travel between two different workplaces on the same day can also be deductible in some cases.

Check your total take-home pay with the Australia pay calculator.

A checklist for working two jobs

Most tax bills from working two jobs come from the forms filled in on the first day. Run through these steps when you start the new job, and again if your hours change a lot.

1. Tax file number declaration: complete one for each employer, and answer “yes” to the tax-free threshold question with only one of them, usually the job that pays the most.
2. HELP debt: answer “yes” to the HELP question with every employer, so repayments are withheld from both pays.
3. Extra withholding: if your combined income crosses $45,000, where the 30% rate starts, consider asking your second employer to withhold a little more.
4. Super: both employers pay 12% super. Choose one fund for both jobs to avoid paying two sets of fees.
5. Year-end check: your income statements in myGov show the tax withheld by each employer.

What working two jobs looks like in numbers

Using the $40,000 + $20,000 example, your main employer withholds as if you earned $40,000 with the threshold. Your second employer uses the no tax-free threshold scale on the whole $20,000. Across the year, the total should come close to the $8,420 of tax plus $1,200 Medicare levy you actually owe, leaving $50,380.

If you claimed the threshold with both employers while working two jobs, each would treat the first $18,200 as tax-free. Not enough tax would be withheld, and the gap would show up as a bill when you lodge.

When to get help

Working two jobs is common, and most people can manage it with the steps above. If you also have investment or business income, or you are unsure which employer should get the threshold, compare your expected income with the ATO resident tax rates or speak to a registered tax agent.

Frequently asked questions

Estimates for information only, not tax advice.