Hi all, currently working part time at two different places. Just wondering if I could claim no tax-free threshold from two different employers at the same time? I know the tax form did say no, but maybe I could claim first, then pay back during tax return?
Would rather have more money in my pocket first.
Thanks!
I know the tax form did say no
You're still asking after telling us this? Buuuuuut…..
There's a lot of things that we're not supposed to do. Some are quite obvious and some are not that obvious.
Which also means, in some cases you can plead ignorance and some you can't.
When you completed the form in your current part time job, you didn't tick the Tax-Free threshold box, right right? That's right, it was a long time ago and you're pretty sure you didn't.
That means when you complete the form in your second part-time job, you can tick that box!
woohooo.. problem solved!
(Just make sure you have enough to pay your total tax bill when it comes to tax time next year!).
Yes you could tick the tax-Free threshold box, but you may end up with a larger tax liability at the end of each financial year. Just make certain you are able to pay it off.
ATO response:
-Would rather have more money out of your pocket first.
(Advice not from my Dad at ATO)
If you're skint now, how are you going to pay the tax bill when it comes around?
I'm not skint. Like I said, I'd rather have more cash in my bank to offset my mortgage, rather than paying ATO in advance.
Fair enough.
Possibly illegal as you're only supposed to claim it once (the form says you pinkie swear that your telling the truth) but you're not going to get pinged for it. (Not legal advice, but you know that.)
IIRC if you know your total income will be under $18k then it's fine to tick away.
If I make 18k a year, I'd rather just go on centrelink lol
From memory of previous discussions here, you are making a declaration that the form you have completed is true and correct, which includes a statement that you haven't claimed the tax-free threshold from another employer.
If you are comfortable making such a declaration, do it. If not, don't.
I did it one year. Nobody batted an eyelid. Settled tax at the end of the FY. This was nearly 20 years back through.
My accountant says I could do it, but he's failry dodgy guy lol
I dont see how it is dodgy. Dodgy is not paying your tax bill at the end of the year. The whole purpose of a tax return is to consolidate at the end of the year so everything balances. After the consolidation if you dont follow through, then its an issue, but besides that who cares.
Just make sure you know your liability and dont get comfortable or in the habit of spending more. Go fo Paycalculator.com for a start, that is fairly accurate - and aim to have the difference between your tax with held and that amount ready to pay.
so long as you can pay back when the time comes, its fine.
its not dodgy or illegal.
ato just advises people to pay for their 2nd or more jobs they have. so people wont get into a tax trap. where they have to fork out 1000's in a short period of time when tax return is done.
if they cant pay, you may get a fine, also late payment fee and gic on top of what you owe until you pay it off.
there's nothing wrong with an honest mistake
you can but if the 2 jobs combined exceed the $18,200 tax free threshold, you would most likely have be in a tax debt that you would have to pay back when you do your tax return as you would have insufficient tax withhold during the year.
This question was asked on OzBargain a few years ago.
While I think the mortgage offset is smart use of the money I don't think it will work for more than 1 financial year anymore. The ATO now detects significant PAYG anomalies and may send you a notice to apply for a PAYG withholding variation. After this is imposed you may end up paying a correction every quarter.
Sure you can tick the 'no tax free threshold' from as many employers at the same time as you like.
Jokes aside, here's your answer:
*Not tax advice.