Taxation on a Second Job

In Australia, the first $6000 that is earned by each employee is TAX FREE and any computerised Payroll Program and the manual tax scales take this into consideration when calculating tax to be withheld.

Tax is paid on every dollar earnt from a second job, as the tax free threshold has already been claimed on the first job.

Filling out a Tax File Number Declaration

Do you want to claim the Tax Free Threshold from this Employer?

The answer is YES if this is the Employees only or nominated Primary Job.
For Employers if the answer is YES the Tax Scale set in your payroll software must be set to TAX FREE THRESHOLD

The answer is NO if this is the Employees nominated second job.
For Employers if the Answer is NO the Tax Scale set in your payroll software must be set to NO TAX FREE THRESHOLD, or is using the manual tax scales, please go to the column that says No Tax Free Threshold.

When an Individual Tax Return is lodged, the tax deducted from the two jobs will be balanced against Gross earnings. The Gross income will be added from both jobs and the correct amount of tax will be calculated using the tax scales.

Here is an example:

Job 1: Paid: $700 per week
Tax: $ 99 using Tax Free Threshold Scale
Net: $601

Job 2: Paid $100 per week
Tax: $ 16 Using No Tax Free Threshold Scale
Net: $ 84