Second job tax

[brod]

Dont have much of an understanding of this matter, as have never done it myself. My little understanding is that you simply pay tax on the entire earnings for the second job as you cannot claim tax free threshold twice.
Looking at the ATO tax table if you
- earn $500 and claim Tax free threshold ($67 tax) = $433 net
- earn $400 and dont claim Tax free threshold ($87 tax) = $313 net
In two jobs earned $900 (tax $154) = $746 net
- earn $900 and claim tax free threshold ($182 tax) =$718 net

I know there is an error somewhere, but where and what is the easy way to figure this out???

[Ian]

You can't claim the tax free thresh hold on your 2nd job, if you pay too much tax for your total earning you will get a return after submitting your return, it will all even out at the end of the financial year.
For instance, if you are paying $10 a week too much tax, you will get a return of $520 ($15/$780, $20/$1040 etc.), probably would have blown the $10 each week, but the return will give you something worthwhile having.

[Rushby Hinds]

Yep.


The total tax paid is cumulative, and the amount withdrawn from your pay packet is just your employers approximation of how much your tax bill will be.

In these three examples, the person ends up paying exactly the same amount of total tax when the tax return is done

1: Job paying $75k and job paying $5k
2: Job paying $40k and another job paying $40k
3: One job only paying $80k

[Dissident]

Tax free threshold is for your income - not a job - hence you can only claim it once.

[smac]

Tax calculators are here:

http://www.ato.gov.au/individuals/conte ... 50&mfp=001

If you tally up the income from both jobs, it will give you total tax due. Subtract current earnings/tax from the totals and you will get your approximate earnings/tax from the second job.

[MW]

this is a trap I fell into recently....even though my 2nd employer taxed without the tax freethreshold, it was still not enough tax to cover the total earnings I will make for the financial year...I project I will be owing approx. $2,500 tax by 30 June.

So now I am getting the 2nd job taxed at a much higher rate to cover it, but it hardly seems worth working the 2nd job now...

[Lunchcutter]

I have a second job and that job is taxed at 33% - my accountant said this is the right way to do it as per ATO guidelines - started the 2nd job to save up for my home - ten years ago - remember only received 140 in my hand for the 2nd job - everyone else was taking home about 210 a week...

really defeats the purpose but I spose any extra is extra after all