Welcome To Workpaper.
Welcome To Workpaper.
Working two jobs can increase your income β but if not managed correctly, it can also lead to an unexpected tax bill from the ATO.
One of the most common mistakes Australians make is incorrectly claiming the tax-free threshold from more than one employer.
π This simple error can result in underpaid tax throughout the year and a surprise bill at tax time.
βοΈ You can generally claim the tax-free threshold from only one employer
βοΈ Claiming it twice leads to under-withholding of tax
βοΈ This results in a tax bill when lodging your return
βοΈ HELP/HECS and Medicare levy are based on total income
βοΈ You can fix it by submitting a new TFN declaration
The tax-free threshold allows Australian residents to earn up to $18,200 per year tax-free.
π Important rule:
This threshold applies to your total income β not per job
When starting a job, you complete a Tax File Number (TFN) declaration.
π Question: Do you want to claim the tax-free threshold?
βοΈ YES β No tax withheld on first $18,200
βοΈ NO β Tax withheld from first dollar
π If you select YES for two jobs, both employers reduce tax β leading to a shortfall
Correct Setup
βοΈ Claim threshold from one job
βοΈ Other job taxed normally
π Accurate tax withholding
The Mistake
β Claim threshold from both jobs
π Less tax withheld overall
π Leads to ATO tax bill at year-end
Step 1: Choose Your Main Job
π Usually your highest-paying or stable job
Step 2: Update TFN Declaration
Submit a new TFN form to your second employer
βοΈ Tick βNOβ for tax-free threshold
Step 3: Check Payslips
βοΈ Ensure more tax is being withheld correctly
Step 4: Add Extra Withholding (Optional)
π Use Withholding Declaration (NAT 3093)
βοΈ Helps cover past shortfall
Step 5: Use ATO Calculator
βοΈ Estimate your tax position
βοΈ Avoid surprises
π Example: How a Tax Bill Happens
Emma earns:
π She incorrectly claims threshold at both jobs
βοΈ Total income = $75,000
βοΈ Less tax withheld during the year
π Result: ATO calculates full tax β Emma owes money
β οΈ Additional Traps to Watch
HELP/HECS Debt
βοΈ Repayments based on total income
β Not declared to all employers β tax shortfall
Medicare Levy
βοΈ Calculated on total income
π Can increase overall tax liability
Mistake: Claiming threshold on both jobs
π Fix: Claim from one job only
Mistake: Ignoring small second income
π Fix: ATO assesses total income
Mistake: Not declaring HELP debt
π Fix: Update TFN declaration for all jobs
Mistake: Waiting until EOFY
π Fix: Act immediately
π Your Quick Checklist
βοΈ Review payslips
βοΈ Update TFN declaration
βοΈ Declare HELP/HECS if applicable
βοΈ Use ATO calculator
βοΈ Keep savings buffer for tax
Can I claim the tax-free threshold on two jobs?
β No β only one employer at a time
Why do I owe tax with two jobs?
π Because not enough tax was withheld
Which job should I claim it from?
π Your main or highest-paying job
Does my second job get taxed more?
π No β itβs just taxed from the first dollar
Can I fix it mid-year?
βοΈ Yes β submit a new TFN declaration anytime
π Working two jobs is fine
π But claiming the tax-free threshold twice = tax trouble
βοΈ Correct setup = smooth tax return
β Wrong setup = unexpected ATO bill
At Workpaper, we help you stay on top of your tax obligations:
βοΈ PAYG withholding setup & corrections
βοΈ Tax planning for multiple income sources
βοΈ HELP/HECS and Medicare levy guidance
βοΈ Accurate tax return preparation
βοΈ Ongoing compliance support
π So you avoid mistakes and keep your finances stress-free
π Website: https://workpaper.com.au/
π§ Email: info@workpaper.com.cu
π Contact: 0485 825 915
π Address: 7 Bridge St, Werribee, Victoria 3030 Australia
Workpaper Solutions Pty Ltd
WORKPAPER Is A Valuable Service Provider With An Endeavor To Offer Cost-Effective High-End Quality Solutions.
