If you work two jobs in Australia, only one employer should apply the tax-free threshold. The second job usually withholds more tax to prevent underpayment during the year.
Why tax on a second job is higher: When the tax-free threshold is not applied, PAYG withholding starts from the first dollar. This prevents you owing a large tax bill when you lodge your tax return.
Choosing which job gets the tax-free threshold: Generally choose your main, stable, or highest-paying job. The second job should not claim the threshold.
Common issues people experience: Lower-than-expected take-home pay, fluctuating PAYG withholding, and different net amounts each pay cycle due to varying hours or overtime.
How HELP/HECS affects multiple jobs: Your employer may withhold additional amounts when your total income exceeds the repayment threshold. This can affect your take-home pay even if the job itself is part-time.
How this calculator models two jobs: This site keeps calculations simple and does not model multiple-job withholding variations. It shows a single-income PAYG result based on tax-free threshold on or off.
Call to action: Use the main calculator to compare results with and without the tax-free threshold to understand how second-job withholding changes net pay.