If you have more than one job, you will usually get taxed a lower amount of tax on your first job and a higher amount on the additional jobs you have. This is because you are claiming the tax-free threshold from your first job which does not apply to your second and/or third job, etc. Withholding tax at a higher rate means that you are less likely to have an additional tax bill at the end of the income year.

When you start a new job, your new employer will ask you to complete a Tax File Number Declaration form to complete. Remember, Centrelink is also a payer, and they will also give you this form to complete if you apply for their jobseeker payments.

When you fill in this form, you have the option to choose whether to claim the tax-free threshold from your employer, So, if you:

  • Are still earning income from your first employer, you should not claim the tax-free threshold for your second job
  • Are no longer earning any income (including from paid leave), then you are entitled to claim the tax-free threshold from your second job and have a lower rate of tax withheld
  • Start receiving income from both employers, you can request that one employer withholds at a higher rate to avoid a tax debt at the end of the year.

Follow the below link for more information on when to claim the tax-free threshold:

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