Juggling Multiple Jobs in Australia: Tax Implications & Benefits

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Juggling Multiple Jobs in Australia: Tax Implications & Benefits

With the rising cost of living and a growing economy, more Australians are taking on two or more jobs to boost their income. Whilst the extra cash can be a game-changer, it’s important to understand the tax implications and how to make the most of your earnings.

Tax Implications of Having Multiple Jobs

  1. Tax-Free Threshold
    • You can only claim the $18,200 tax-free threshold from one employer—usually the job you earn the most income from.
    • If you claim it from more than one, you may not have enough tax withheld and could face a bill at year end.
  2. Higher Tax Withholding
    • Your second job is taxed at your without the tax free threshold, which may mean a higher rate depending on your total income.
    • Employers are required to withhold tax at the “no tax-free threshold” rate for your second job.
  3. Medicare Levy
    • Your total income from all jobs is used to calculate the 2% Medicare Levy, which may increase your overall tax liability. Higher income could also put you in the category for Medicare levy surcharge if you don’t hold private health insurance.

Here are some of the Positives of Holding Multiple Jobs

  1. Increased Income
    • The most obvious benefit—more jobs mean more money, which can help with savings, debt reduction, or lifestyle upgrades.
  2. Skill Diversification
    • Working across industries or roles can broaden your experience and make you more marketable.
  3. Career Flexibility
    • A second job can be a stepping stone to a new career path or a way to test out a side hustle.
  4. Financial Resilience
    • Multiple income streams can provide a safety net if one job becomes unstable or seasonal.

Having more than one job can be financially rewarding, but it’s essential to manage your tax affairs carefully. As accountants, we can guide you through the complexities—ensuring you stay compliant while maximising your benefits.  Reach out if you need any further information or have questions, on 07 5494 9173.