Tax-Free Threshold and Second Job Tax Guide

The tax free threshold is the amount of income you can earn each financial year without having to pay income tax on it. In Australia, for the financial year 2021-2022, the tax free threshold is $18,200. This means that if your total taxable income is below $18,200, you will not have to pay any income tax.

To claim the tax free threshold on your income in Australia, you need to fill out a Tax File Number (TFN) declaration form and provide it to your employer. On the form, you can indicate that you want to claim the tax free threshold. If you have more than one job, you should only claim the tax free threshold at one job to avoid underpaying tax.

If you claim the tax free threshold on multiple jobs in Australia, you may end up underpaying tax as the tax free threshold is meant to be claimed only once across all your sources of income. This could result in a tax debt at the end of the financial year when your tax return is assessed.

If you have already claimed the tax free threshold on your primary job and you take on a second job, you will need to inform your second employer that you have already claimed the tax free threshold. Your second job will then be taxed at a higher rate, known as the no tax-free threshold rate, which means more tax will be withheld from your pay.

No, you cannot claim the tax free threshold on two jobs in Australia. The tax free threshold is a benefit that should only be claimed once to avoid underpaying tax. If you have multiple jobs, you should only claim the tax free threshold at one job and inform your other employers not to apply the tax free threshold to your income.