When it comes to lodging our tax returns, often we are so pushed for time that we forget to ask the questions that have been bothering us. It’s so important to talk to a professional with anything regarding finances. Throughout June, we will feature some of the most common questions, answered by a practicing accountant.

How much tax do I have to pay on a second job?

If you are an Australian tax payer, you are entitled to the tax-free threshold of $18,200. This means you can earn up to $18,200 each year without paying tax. 

If you are working multiple jobs, it is important that your tax declaration is correct and you are not claiming the TFT on your other jobs. This basically means your other employers will withhold PAYG on every dollar you earn at the estimated marginal rate for your annualised earnings.

It is always a good idea to keep an eye on the total withheld across all of your jobs during the year. No one likes an unexpected tax bill as not enough has been withheld during the year.

Do I need to lodge a tax return?

If you are earning income, generally yes! If you have an ABN, regardless of your income, you need to lodge a tax return. But you may be eligible to advise the ATO that a Return is Not Required if you earn under the tax-free threshold.

The advice given above is of a general nature only. For advice on your personal situation, please contact your accountant.