Working More Than One Job in Australia
Many people in Australia work more than one job during the financial year. A student might work in hospitality during the week and do casual cleaning shifts on weekends. Another worker may have one permanent job while also working occasional shifts for another employer.
Having multiple jobs is not automatically a tax problem. However, each employer generally calculates PAYG withholding based on the information you have given them. They may not know how much you are earning from your other jobs.
This means the total amount withheld across all of your jobs may not always match your final tax position when all of your income is combined in your annual tax return.
Your tax result depends on your total taxable income, tax residency, deductions, amounts already withheld, Medicare circumstances, study or training loan obligations and other relevant factors. Having two jobs does not automatically mean you will receive a refund or have a tax bill.
How Does the Tax-Free Threshold Work With Multiple Jobs?
Australian residents for tax purposes may generally access the annual tax-free threshold. The current full-year threshold is $18,200.
If you have more than one employer and expect your combined income to exceed the tax-free threshold, you would generally claim the threshold from only one employer.
Your other employer or employers would generally withhold tax without applying the tax-free threshold. This can help reduce the risk that too little tax is withheld across the year.
A student working two casual jobs
Imagine a Nepali student works at a restaurant and also works weekend shifts at a retail store. Each employer calculates withholding separately.
If the tax-free threshold is incorrectly claimed from both employers, the combined withholding may be lower than required once both jobs are added together for the annual tax return. Depending on the student's circumstances, this may contribute to an unexpected tax bill.
Does Your Second Job Get Taxed at a Special Rate?
A common misunderstanding is that Australia has a special tax rate simply because income comes from a “second job”.
Your final income tax position is generally based on your overall taxable income and circumstances rather than simply labelling one employer as your first job and another as your second job.
The amount withheld from each payslip may look different because the tax-free threshold and other withholding information can affect how an employer calculates PAYG withholding.
Why Can People With Two Jobs End Up Owing Tax?
It is possible to have tax withheld from every payslip and still have an amount payable after lodging your tax return.
This can happen for several reasons, including:
Tax-free threshold claimed incorrectly
Claiming the tax-free threshold from more than one employer can result in less tax being withheld during the year.
Employers calculate separately
One employer generally does not calculate withholding based on the wages you receive from another unrelated employer.
Other income
Bank interest, investment income, ABN income or other taxable income may affect your final tax position.
Other obligations
Medicare circumstances and eligible study or training loan repayment obligations can also affect the amount ultimately payable.
What If You Changed Jobs During the Year?
Having several employers listed on your tax return does not necessarily mean you were working all of those jobs at the same time.
You may have resigned from one employer in August, worked somewhere else from September to December and started another job later in the financial year. Income from each relevant employer may still appear in your income information for that financial year.
Before lodging, make sure the income information for each employer is complete and that you have considered all employment income earned during the year.
Check Your Income Statements Before Lodging
Employers generally report salary and wage information through Single Touch Payroll. Income statement information can then be available through the ATO's online services linked to myGov.
If you have had several jobs, it is particularly important to check that all relevant employers are included.
| What to check | Why it matters |
|---|---|
| Employer names | Helps make sure income from each employer has been considered. |
| Gross salary and wages | Your employment income contributes to your overall tax position. |
| PAYG tax withheld | Shows amounts employers have already withheld and reported. |
| Income statement status | Check whether employment information has been finalised before relying on it. |
| Old employers | Do not overlook an employer simply because you stopped working there months ago. |
Can You Claim Deductions When You Have Multiple Jobs?
Having several jobs does not prevent you from claiming eligible work-related deductions. However, normal Australian deduction rules still apply.
An expense generally needs to have the required connection with earning your assessable income, and appropriate records should be kept where required.
Depending on your work and circumstances, possible expenses might relate to areas such as:
- work-related phone or internet use
- eligible protective clothing or occupation-specific clothing
- eligible work-related training or self-education
- tools or equipment used for employment
- certain work-related travel in eligible circumstances
- other employment expenses permitted under Australian tax rules
An expense is not automatically deductible simply because you worked multiple jobs. Private expenses and ordinary travel between home and your usual workplace are generally subject to separate rules.
What If You Have a Job and ABN Income?
Some Nepali workers may have salary or wage employment while also earning income through an ABN, sole trader activity or online platform work.
This can be more complicated because tax may already be withheld from your employment wages while tax may not automatically be withheld from your business or contractor income.
Your salary, wages and relevant business income may all need to be considered when working out your overall tax position.
Depending on the business activity, there may also be additional considerations involving expenses, GST, record keeping or PAYG instalments.
Common Multiple-Jobs Tax Return Mistakes
This can result in insufficient tax being withheld where your combined income exceeds the threshold.
Employment that finished early in the financial year may still need to be included in your annual return.
Review your income statements and ensure relevant employer information is complete before lodging.
Travel and other expenses have specific rules. The fact that you have multiple jobs does not automatically make every related cost deductible.
Income from contracting, delivery platforms or other business activities may also need to be reported.
What Records Should You Prepare?
Good records can make a multiple-jobs tax return much easier to review.
You may want to organise:
- income statements from all employers
- recent and historical payslips where relevant
- details of PAYG tax withheld
- bank interest and other income information
- ABN or sole trader income records, if applicable
- receipts and evidence for eligible work-related expenses
- work-related travel records where relevant
- phone or internet usage calculations where claiming an eligible work portion
- study or training expense records where relevant
Multiple Jobs and Nepali Students in Australia
Nepali students may change employers frequently or combine different casual jobs throughout the year. For example, someone might work in hospitality, cleaning, retail, aged care or another casual role at different times.
Having several income statements can make a tax return look complicated even when each individual job was relatively straightforward.
It is important not to assume that being an international student automatically determines your Australian tax residency. Tax residency is a separate tax concept and depends on the individual's circumstances.
How Hamro Accountant Can Help
Hamro Accountant provides tax and accounting support for Nepali individuals, students, employees, ABN holders and small business owners across Australia.
If you have worked for several employers, changed jobs, earned ABN income or are unsure whether all of your income and deductions have been considered correctly, professional assistance can help you organise the information before lodging.
Support may include reviewing income information, PAYG withholding, deductions, employment records, ABN income and other relevant tax-return information depending on your circumstances.