What Happens to Your Tax Return When You Change Jobs?
Changing jobs during the financial year does not mean the income from your previous employer disappears from your tax return.
Your annual tax position generally considers relevant income earned throughout the financial year. This may include salary and wages from your previous employer as well as income from your new employer.
If you changed jobs more than once, you may see several employers listed when preparing your Australian tax return.
The final tax outcome depends on your total taxable income, tax already withheld, deductions, tax residency and other circumstances. Changing employers does not automatically mean you will receive a larger refund or have tax to pay.
Your Old Employer May Still Appear in Your Tax Return
It is easy to forget a job that ended several months earlier, especially if you only worked there for a short period.
For example, you may have worked for one employer from July to September and then started another job in October. Income from both employers may form part of the same financial year's tax return.
The same can apply if you worked a casual job for only a few weeks before moving to another employer.
A worker who changed jobs in December
Imagine a Nepali worker was employed by Company A from July until December and then joined Company B in January.
When the worker prepares the tax return after the end of the financial year, income and PAYG withholding reported by both Company A and Company B may need to be considered. The fact that employment with Company A ended months earlier does not automatically remove that income from the return.
Check Your Income Statements Before Lodging
Employers generally report salary and wage information through Single Touch Payroll. Your employment information can then appear through ATO online services linked to myGov.
After the end of the financial year, an employer generally finalises the income information they have reported. Once finalised, the income statement status can show as Tax ready.
If you have changed jobs during the year, check the income statement for each relevant employer rather than looking only at your current workplace.
| What to Check | Why It Matters |
|---|---|
| Previous employer | Income earned before changing jobs may still form part of your annual tax return. |
| Current employer | Review salary, wages and tax withheld reported by your current workplace. |
| Gross income | Make sure the amounts reported by employers appear reasonable against your records. |
| PAYG tax withheld | This shows tax your employers have already withheld during the year. |
| Tax ready status | Finalised income information is generally ready to be used when preparing your return. |
What About the Tax-Free Threshold When You Change Jobs?
Australian residents for tax purposes may generally be entitled to the tax-free threshold. If you stop working for one employer and later begin working for another, you will usually complete employment tax information for the new employer.
The important distinction is whether you have simply changed employers or whether you are working for multiple employers at the same time.
If you have more than one payer at the same time, the tax-free threshold rules need to be considered carefully. If you simply left one job and began another, your circumstances may be different.
Leaving one employer and starting with another is different from earning wages from two employers at the same time. If you are working multiple jobs concurrently, see our separate multiple-jobs tax return guide.
Why Might Your Tax Withholding Look Different?
Your previous employer and new employer may withhold different amounts of tax from your wages.
This can happen because withholding is calculated using the information provided to each employer and the amount you earn during each pay period.
A change in salary, working hours or employment arrangements can therefore make your payslips look different even if your overall tax situation has not yet been calculated for the full financial year.
What If Your New Job Pays More?
Moving into a higher-paying role can increase your total income for the financial year.
Your final tax result is generally calculated using your overall taxable income and relevant circumstances rather than looking at each job in isolation.
This is one reason why the amount withheld by an individual employer does not necessarily tell you whether you will receive a refund or have an amount payable after lodging.
Can You Claim Deductions From Both Jobs?
Changing occupations or employers during the year does not prevent you from claiming eligible work-related expenses.
However, each deduction still needs to satisfy the normal Australian tax rules and should be supported by appropriate records where required.
Depending on the type of work you performed, possible categories may include:
- eligible work-related phone and internet use
- protective clothing or occupation-specific clothing where eligible
- tools and equipment used to perform your employment duties
- eligible self-education or training expenses
- eligible work-related travel
- other expenses sufficiently connected with earning your employment income
Different jobs can have different deduction rules. An expense that relates to one occupation may not necessarily be deductible for another.
What If You Changed Occupations Completely?
Some workers do more than change employers. They may also move into an entirely different occupation during the year.
For example, someone may move from hospitality work into aged care, construction, administration or another industry.
In these situations, it can be useful to separate expenses according to the job they relate to.
Previous occupation
Keep records for eligible expenses incurred while earning income from your previous role.
New occupation
Keep separate records for expenses connected with your new employment duties.
Shared expenses
Some expenses, such as eligible phone use, may relate to more than one job and require an appropriate work-use calculation.
Private expenses
A cost does not become deductible simply because it was incurred around the time you changed jobs.
Is Travel Between Your Old and New Job Deductible?
Ordinary travel between your home and your usual workplace is generally private.
Simply changing employers does not automatically make travel to the new workplace deductible.
Work-related travel can have different treatment depending on the circumstances, so avoid assuming that every trip connected with employment can be claimed.
What If You Received a Final Payment From Your Old Employer?
When employment ends, you may receive a final payment that includes amounts such as ordinary wages, accrued leave or other employment-related payments.
The tax treatment can depend on the type of payment and your circumstances.
Rather than assuming every amount is treated exactly like ordinary wages, check the information reported by your employer and obtain professional advice where the payment is unusual or unclear.
What If an Old Employer Is Missing From myGov?
If you cannot see information you expected from a previous employer, avoid simply ignoring the income.
Review your payslips, bank records and other employment documents and check whether the employer information has been finalised.
If something appears incorrect or incomplete, you may need to contact the employer or seek assistance before lodging.
Common Mistakes After Changing Jobs
A job that ended months ago may still form part of the same financial year's tax return.
Review the status of relevant income statements before relying on the information for your return.
Keep records showing which job an expense relates to and why the expense may be deductible.
Your final outcome depends on total taxable income, withholding, deductions and other relevant circumstances.
ABN income, bank interest and other taxable income may also need to be considered.
What Records Should You Keep?
Keeping records from both your previous and current employer can make your tax return easier to review.
Useful records may include:
- payslips from your previous employer
- payslips from your new employer
- income statement information
- PAYG withholding details
- employment contracts where relevant
- records of eligible work-related expenses
- receipts and invoices
- eligible travel or vehicle records where applicable
- phone and internet usage calculations where relevant
Changed Jobs and Also Started ABN Work?
Some workers leave an employee position and later begin earning income through an ABN or sole trader activity.
This can make the tax return more complex because PAYG tax may have been withheld from your former employment wages while tax may not automatically be withheld from your business income.
Depending on the activity, there may also be considerations involving business expenses, record keeping, GST and PAYG instalments.
Changed Jobs and Started a Second Job?
If you left one employer but then began working for two employers at the same time, your situation may involve both a change of job and multiple concurrent jobs.
In that case, tax-free threshold and withholding arrangements may need additional attention.
Our separate multiple-jobs guide explains this situation in more detail.
Changing Jobs as a Nepali Worker in Australia
Nepali workers in Australia may change jobs for many reasons, including study schedules, moving cities, career progression, visa-related circumstances or moving between casual and permanent employment.
Some people may work in several industries during the same financial year. For example, someone may move from hospitality into disability support, or from cleaning into an administrative position.
The more employers and occupations you have during a financial year, the more important it becomes to keep your income and expense records organised.
How Hamro Accountant Can Help
Hamro Accountant provides tax and accounting support for Nepali workers, students, employees, ABN holders and small business owners across Australia.
If you changed jobs during the year and are unsure whether all income statements, withholding amounts and eligible deductions have been considered, professional assistance can help you review the information before lodging.
Support can also be useful if you changed occupations, started ABN work, worked multiple jobs or have missing or unclear employment records.