Australia tax-free threshold and multiple jobs
This explanation covers tax-free threshold and multiple jobs in Australia, using the published government rules and their stated scope.
On this page
- Threshold and withholding
- The tax-free threshold is A$18,200. An individual can choose whether to claim it on income received from a payer.ATO multiple jobs or change of job
- Concurrent payers
- With more than one payer at the same time, the threshold is generally claimed from one payer, usually the payer providing the highest salary or wage.ATO multiple jobs or change of job
Threshold and withholding
The tax-free threshold is A$18,200. An individual can choose whether to claim it on income received from a payer. ATO multiple jobs or change of job (opens in a new tab).
When the threshold is claimed, the ATO lists withholding above A$363 per week, A$726 per fortnight or A$1,573 per month. ATO multiple jobs or change of job (opens in a new tab).
Concurrent payers
With more than one payer at the same time, the threshold is generally claimed from one payer, usually the payer providing the highest salary or wage. ATO multiple jobs or change of job (opens in a new tab).
Multiple payers can include a second job, a part-time job alongside a taxable pension or government allowance, or work under an ABN. ATO multiple jobs or change of job (opens in a new tab).
The low-income exception
If total income for the income year from all payers is certain to be A$18,200 or less, the threshold can be claimed from each payer. ATO multiple jobs or change of job (opens in a new tab).
If total income later rises above A$18,200, a withholding declaration advises one employer to stop applying the threshold. ATO multiple jobs or change of job (opens in a new tab).
Changing jobs
When a previous employer stops paying following a job change, the threshold can be claimed from the new payer even if it was previously claimed from the old employer. ATO multiple jobs or change of job (opens in a new tab).
A tax file number declaration records the choice for the new employer. The payer works out how much tax to withhold from payments. ATO multiple jobs or change of job (opens in a new tab).
Year-end assessment
The ATO assesses all income and tax withheld when the tax return is lodged. Total withholding can be more or less than the end-of-year tax liability. ATO multiple jobs or change of job (opens in a new tab).
Too much withholding may result in a refund. Too little withholding may result in a tax bill for the difference. ATO multiple jobs or change of job (opens in a new tab).
This general explanation provides no personal eligibility decision, tax calculation or recommendation.