Paying Taxes with 2 Jobs

ireadtermsofuse on 15/02/2019 - 12:20

Hello all.

I’ve just got myself a new job as a casual right now but I’m getting at least 4-5 shifts a week. I’ve been working there for over a month now.

My other job which I have stepped down from part time to casual as well now to accommodate my new job (and as a back up) have been there for 11 years.

My question is, can you change the job that I’ve just recently started to pay the less tax and the one that I’ve been with longer to be the one to pay more tax? Or is that not how it works, and it’s the one where you earn more is the one where they slug you 30+%?

Thanks in advance

Financial Tax

Comments

  • tomsco on 15/02/2019 - 12:36
    +3

    Just ask to do a new tax file number declaration.

  • Imhereforcomments on 15/02/2019 - 12:39
    +7

    Yes, you just need to ask your employer/payroll department and they will make the changes to apply the threshold tax. Either way it will balance it out at the end of financial year when you determine if you paid too much or not enough tax.

    • ireadtermsofuse on 15/02/2019 - 23:26

      So let say my new job paid me $1500 gross and slugged me $500 in tax and the old job had no shifts therefore making $0 income, (which I assume will happen for a long time), it’s still possible to make the switch? Assuming this applies similarly every week?

      • Imhereforcomments on 16/02/2019 - 11:55
        +2

        Yes it is possible. Just talk to your new employer and request for them to apply the 'tax free threshold' (So this job will be tax at the normal rate). With your old job if your not getting any income then just leave as it is in my opinion or for the record you can let them know and have them to stop the tax threshold (So this job would be tax at a higher then usual rate)

        This usually can be done by simply emailing your employer/payroll or they will just have you fill out a new tax file number declaration form where you will you need to tick the box and indicate if you want the threshold tax-free to apply.

        Or you can just continue as it is with no changes and any excess tax you pay from either jobs will be refunded back to you at the financial year when you lodge your tax return.

  • HighAndDry on 15/02/2019 - 12:54
    +15

    Ask your old job to stop applying the taxfree threshold, ask your new job to apply that to your pay from that job.

  • ozhunter on 15/02/2019 - 13:16
    +6

    At the end of the financial year, you pay the same tax, whether you have one, two, or three jobs. As already been said, ask the job where you earn more to apply the tax-free threshold, and ask to have it stopped on the lower paying one.

  • AdamFury on 15/02/2019 - 13:43

    Yes. As mentioned already its called the 'tax free threshold' you claim it on your first job and not on the second. All you need to do is speak to your employer / payroll and get it swapped.

    • Donaldhump on 15/02/2019 - 14:17

      who said you cant claim it on both. you still pay the same tax at the end of the year

      if you have two jobs earning $100 a week each why would you not claim it on both

      • rover on 15/02/2019 - 14:37
        +1

        You could do that, providing you dodn't have other income that took annual income over $18,200; in which case you could only clain the threshold on 1 of those incomes.

      • Beanvee on 15/02/2019 - 14:44
        +3

        If you earn under 18k you can claim it on both job, but if you earn over 18k you can't, and ATO is who says https://www.ato.gov.au/individuals/working/working-as-an-emp…

        Trying to claim it on two jobs when you're earning over 18k for the year is basically a bad attempt to try not pay tax. If you make 30k a year, 15k each from two jobs, and you put them both down as tax free threshold, both employers won't be putting anything into tax because both are under the threshold.
        But of course when it comes to when ATO calculates your tax for your yearly earnings, you'll get taxed from 18k-30k and end up owing because you made no tax payments.

  • Donaldhump on 15/02/2019 - 14:15
    +1

    why not just claim them both tax free, and keep some aside to pay your taxes

    • rover on 15/02/2019 - 14:35

      You can only claim the tax free threshold, if:

      1) you are not aleady claiming, or
      2) your combined income from all sources is less than the tax‑free threshold

      This is from the TFN decaration form.

      • Donaldhump on 15/02/2019 - 14:56

        …

      • Donaldhump on 15/02/2019 - 14:57

        dont think its illegal to claim both , you still pay same bloody tax at the end of the year so if the hours are inconsistent between the two claim them both tax free, and keep money aside

        if both jobs can have between 3 and 20 hours a week and keep oscillating as the primary job but rely on the money, you can not pick one over the two.

        • Trying2SaveABuck on 15/02/2019 - 15:16
          +1

          Pretty sure it isnt legal…. if you arent paying the right amount of tax eventually the ATO will come and dick ya and charge a fine plus interest on whatever you own unless you step whistle blow on your self

          I literally know i blow who owed the ATO 50k and legged it to france to avoid the ATO

          this is assuming you earn over the threshold

          • Seraphin7 on 15/02/2019 - 15:45
            +1

            @Trying2SaveABuck: My understanding is that the ATO "discourages" you from claiming it through both employers as it would rather get your money early, get use of it and then pay it back to you at the end of the year.

            Ultimately, when you do your tax return, you square up your debt. So, for example if you got $18k each from 2 employers tax free, your tax return would show that you've earned $36k and would be up for whatever the corresponding amount of tax is. You then need to remit that to the ATO.

            So long as you do your return on time and pay the tax on time, I don't think there's anything the ATO can take any action on.

            • nicolemcmilllon on 15/02/2019 - 16:01
              +1

              @Seraphin7: The ATO will not give a bleep. You paying the same amount of tax at the end of the year. As long as both jobs don't make 100k each for example, then you'll be fine. Pay your tax by the due date and they don't really care.

              • Seraphin7 on 15/02/2019 - 16:07
                +1

                @nicolemcmilllon: That's my understanding, although I don't think the amount matters. You could be earning a bazillion dollars … you just need to be able to square up at tax return time.

                Of course, the ATO will then require you to pay quarterly or even monthly installments so you usually only get to play the game for one year in any event.

                • JIMB0 on 15/02/2019 - 18:36

                  @Seraphin7: Spot on. If you owe them more than $1000 you will most likely be made to pay tax in installments on the untaxed income. These installments do not take into consideration your normal deductions so you will end up prepaying a lot more than $1000 and have to claim back the difference at tax time.

                  • Donaldhump on 15/02/2019 - 20:07

                    @JIMB0: Or you can ignore them or reduce the amount to take into consideration expenses.

            • rover on 22/02/2019 - 12:13

              @Seraphin7: Not saying, it's ollegal; but this is what the TFN declaration form says. You can check yourself.

  • rover on 15/02/2019 - 14:42

    If your combined income from all sources is less than the tax-free threshold then you claim it on both incomes. If comined income from all sources (not just the two jobs) is over then you can only claim it on one. Yon can switch by filling out a new TFN declaration with your payroll section/provider.

  • Skramit on 15/02/2019 - 15:52
    +2

    Surprised McDonalds and KFC let you work for them both on a casual basis….

  • bob smith on 15/02/2019 - 16:24
    +1

    On a different note, hope you got paid out your annual and long service leave from going to casual.

    • Typical16-bitEnjoyer on 15/02/2019 - 17:06

      OP should have gone on an Individual Flexibility Arrangement which would have allowed them to keep all their annual and personal leave entitlements whilst still reducing their hours. Unfortunately a bit late for that.

    • ireadtermsofuse on 15/02/2019 - 20:52

      Ah I had to cash out my long service last year to pay for the wedding. Taxed me like 5k. Ouch

  • serpserpserp on 15/02/2019 - 19:35

    You could not claim the tax free threshold on either jobs and get a nice little return at tax time!

  • HeWhoKnows on 17/02/2019 - 19:43
    -1

    Makes little difference.
    You will have to sign stat decs and your employer wont be keen as they could be held accountable.
    Any excess tax you pay will be sorted when you lodge your tax return.
    Just be prompt.

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