Juggling Multiple Jobs Without a Tax Time Shock

Picking up a second job, holding multiple part-time roles, or doing gig work is now part of everyday life. But the way tax is withheld across multiple payers can lead to a surprise when you lodge your tax return. Making a plan can help avoid a lump sum bill later.

How the Tax-Free Threshold Works Across Payers

As an Australian resident for tax purposes, you are generally entitled to the $18,200 tax-free threshold. This means you can earn up to $18,200 in an income year before paying income tax.

Income from employers, taxable government payments, sole trader or contractor work under an ABN, gig work, and some investment income can all count towards your total taxable income.

If you have more than one payer or employer at a time, you can generally only claim the tax-free threshold from one payer. Usually, this is the payer who pays you the highest salary or wage. If you’re certain your total combined income from all sources will be $18,200 or less, you can choose to claim the tax-free threshold from each payer.

Where the Trap Lies

A common mistake is claiming the tax-free threshold from every employer or payer. Each employer or payer then calculates your tax to be withheld on the basis that the tax-free threshold applies. At tax time, the ATO combines your income from all sources to work out how much tax you owe and, if not enough tax has been withheld, you may receive a tax bill.

If you have more than one job and expect to earn more than $18,200 in total income, you should ask your other employers or payers to withhold tax at the higher “no tax-free threshold” rate by completing a Tax File Number declaration form (for a new job) or a Withholding declaration form (for an existing job).

Gig Work and Sole Trader Income

If you drive for a ride-share platform, deliver food, earn gig economy income, rent out assets, or run a side business, tax may not be automatically withheld from this income.

If you are eligible, voluntary pay as you go (PAYG) instalments or tax prepayments can help you prepay your tax in manageable chunks throughout the year. This can also help you manage cash flow for extra tax liabilities like the Medicare levy or compulsory study loan repayments. If PAYG instalments are not available or suitable for you, set aside a portion of your income in advance to help meet your liabilities.

Don't Forget Your Study Loan

If you have a study or training support loan (e.g., HECS/HELP), take extra care. Your compulsory repayments are based on your total repayment income, not just your main wage. Earning income from additional jobs, self-employment, side hustles, or investments can increase your repayment.

Tell each employer or payer about your loan on your Tax File Number declaration or complete a Withholding declaration so they withhold the right amounts.

Practical Steps to Stay Ahead

To keep your withholding in line with your tax position, you can:

• Claim the tax-free threshold from your highest-paying job only.

• Ask your other employers or payers to withhold at the “no tax-free threshold” rate.

• If eligible, use voluntary PAYG instalments or tax prepayments to manage untaxed income.

• Set aside a portion of any untaxed income in a separate savings account.

Talk to Us

Everyone's mix of income is different, and the right withholding strategy depends on your circumstances. If you're working multiple jobs or picking up gig income, contact our office. We can help you get your withholding and tax planning right so tax time holds no surprises.