If you have more than 1 job but will earn no more than $18,000 then you can lower the tax taken out of your pay
If you will receive income from more than one source from the 2013 tax year and later years and are certain you will earn less than $18,200 in total income for the financial year you can now claim the tax-free threshold from all their employers and other withholding payers. But it is not quite straightforward. The Australian Tax Office (ATO) wants you to fill out additional forms. Usually you can only claim the Tax Free Threshold from 1 employer and then are taxed at a higher rate with other employers. As the Tax Free Threshold has been raised from $6,000 to $18,000 the real possibility of having too much tax (PAYGW - Pay As You Go Withholding) deducted over the year has arisen.
To claim the tax-free threshold from more than 1 employer you will need to complete a Withholding declaration in addition to a Tax File Number declaration (TFN Dec) which you usually fill out and provide it to your employer or other Payer. If you have more than one 'Payer' (an Employer usually) then have a look at the When you have income from two payers on the ATO site. The links on the page give access to a pdf of the form to fill out. The page has worked examples and detailed information. It looks complex but basically amounts to filling out the additional form (the Withholding declaration) to the TFN Dec form.
If you have any questions please contact us.
Source: ATO - https://www.ato.gov.au/individuals/working/working-as-an-employee/claiming-the-tax-free-threshold/#Ifyouhaveincomefromtwopayers
Brett Lamond
30 Aug 2012
Updated 8 Dec 2015 for ATO web changes
[20120830]
Last Edit: 2015 12 08
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To claim the tax-free threshold from more than 1 employer you will need to complete a Withholding declaration in addition to a Tax File Number declaration (TFN Dec) which you usually fill out and provide it to your employer or other Payer. If you have more than one 'Payer' (an Employer usually) then have a look at the When you have income from two payers on the ATO site. The links on the page give access to a pdf of the form to fill out. The page has worked examples and detailed information. It looks complex but basically amounts to filling out the additional form (the Withholding declaration) to the TFN Dec form.
If you have any questions please contact us.
Source: ATO - https://www.ato.gov.au/individuals/working/working-as-an-employee/claiming-the-tax-free-threshold/#Ifyouhaveincomefromtwopayers
Brett Lamond
30 Aug 2012
Updated 8 Dec 2015 for ATO web changes
[20120830]
Last Edit: 2015 12 08
Back to Articles
