Does having two jobs mean more tax is paid?

It’s a common misconception that working two or more jobs will increase the tax you pay at the end of the year.

However, the Australian Taxation Office (ATO) only needs to know much your total taxable income is. They do not care how many jobs you have or how many different sources of income you have. The only truth is that the more income you earn, the more tax you pay.

Due to Australia’s tax system, the rate of tax for some of your income may be higher. When you commence a job, you have to fill out a form that helps determine how much tax is taken out of your pay each cycle (depending on whether you get paid weekly, fortnightly etc.). Generally, within the form, you would tick a box to indicate that you are eligible for the tax-free threshold of $18,200; this applies to all Australian residents. This then sets how much ‘Pay As You Go’ (PAYG) tax is deducted from pay each week/fortnight. The PAYG schedule is set by the ATO and must be followed by the employer.

For a second, subsequent job you would not tick that box about claiming the tax-free threshold as that has already been taken into account. You can only claim the taxfree threshold for one job. Therefore, the PAYG rate would be higher, so it can seem as though you are paying a higher tax rate. At the end of the financial year, when you or your accountant do your tax return, the income from all of your jobs is added together to work out how much tax is payable, less the PAYG tax you have already paid.

If you have any questions or require further advice, please contact us.

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Farewell Deryn

By Jodie Cunningham • 08 Sep, 2023

Deryn worked for Logan & Hall for over 32 years. She was originally employed in an administration role which she continued to do until she left in 1984 to start her family having children Jane and then David. Deryn returned to Logan & Hall in around 1990 as the Office Manager where she also completed some accounting courses. Deryn eventually went onto managing all the office Self-Managed Super Funds including preparation and lodgement of these returns. During her time at Logan & Hall, Deryn built strong relationships with her clients and will be missed by them we’re sure. Outside of work, Deryn is also well known in the Swan Hill Community with her involvement with the Swan Hill Show and Swan Hill Women in Racing. Deryn could also be found on the golf course. You may have even shared a glass or two of bubbles with Deryn along the way. We treasure the many years we have had with Deryn both at work and personally. She will be missed around the workplace, but we will be keeping in touch. Deep will now be managing the Self-Managed Super Funds and can take care of any queries you may have.

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