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As living costs rise, many Australians work multiple jobs to make ends meet. According to the Bureau of Statistics (ABS), 6.9% of the Australian workforce held multiple jobs in June 2026.
While working two jobs can boost your income, it’s important to understand how this affects your taxes at the end of the financial year. A few simple steps can help you avoid a tax bill, and maybe even get a refund when tax time comes around.
Key Takeaways
- Working two jobs is completely legal in Australia, but it can affect how much tax you pay.
- The most common (and most avoidable) mistake is claiming the tax-free threshold from more than one employer.
- A few small adjustments to how much tax is withheld can help you avoid a surprise tax bill and might even boost your refund!
How Does Working Two Jobs Affect My Taxes?
Working two jobs in Australia impacts your taxes because each employer withholds tax assuming they are your only employer. If you don’t manage this properly, you could end up underpaying tax and get a surprise tax bill.
Example: Understanding the Financial Effects of Two Jobs
Alex has two part-time jobs:
- Job A: Earns $30,000 annually
- Job B: Earns $20,000 annually
If Alex claims the tax-free threshold ($18,200) from both employers, both employers will withhold less tax, because each employer assumes he only earns from them. At tax time, the Australian Taxation Office (ATO) reviews his total income of $50,000 and finds he hasn’t paid enough tax, resulting in a tax bill. To avoid this, Alex should claim the tax-free threshold from only one employer, ideally the one paying him more, and ensure the other employer withholds tax at the higher, “no tax-free threshold” rate.
Another common problem with multiple jobs is your total income puts you into a higher tax bracket, but each employer only withholds tax for a lower tax rate based on one of your incomes. We’ll cover this in more detail below
How Much Tax Do You Pay on a Second Job?
The rate of tax you pay when working two jobs is often higher than the rate you pay at one job. Why? Because in Australia, the more you earn, the more tax you pay. These steps help avoid a tax-payable when you do your tax return:
- Adjust Your Withholding: If your combined income from both jobs will put you into a higher tax bracket, you can ask one or both of your employers to withhold a bit of extra tax. This way, you’ll take home a little less each payday, but you’ll owe less to the ATO at tax time, or even get a refund!
- Only Claim the Tax-Free Threshold at One Job: We will really dig into this point, because this is the worst and most common mistake people make when working two jobs. Read more about this below.
- Set Aside Savings: Regularly save a small portion of your income to help cover any potential tax bills at the end of the financial year. If you’re topping up your income, remember that also increases how much tax you owe. Be prepared for a tax bill at the end of the year. If you save for it, tax time won’t be a problem.
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When and How to Claim the Tax-Free Threshold
The tax-free threshold allows you to earn up to $18,200 per year without paying income tax. When your employer claims the tax-free threshold for you, they only withhold tax from your earnings above $18,200. However, when working multiple jobs, you should claim this threshold from only one employer.
Case Study: Claiming the Tax-Free Threshold on Both Incomes
Tom has two part-time jobs:
- Job A: Earns $17,000 annually
- Job B: Earns $12,000 annually
Tom claims the tax-free threshold from both employers. Each employer assumes Tom has one job and earns less than $18,200 annually, so they withhold minimal or no tax. However, Tom’s combined income is $29,000, exceeding the tax-free threshold. At tax time, the ATO works out that Tom owes tax on the amount he earned over $18,200, leaving him with a tax debt. To avoid this, Tom should have claimed the tax-free threshold from only one employer and informed the other to withhold tax at the higher tax rate.
Is It Legal to Have Two Jobs in Australia?
Yes, it is legal to have multiple jobs in Australia.
One thing that would make a second job illegal is trying to hide your second income from the ATO. Trust us: The ATO have sophisticated ways to find your income and always collect what they’re owed in tax. If you try to hide your second income, you could end up with an ATO tax debt that takes years to pay off.
Other legal points you may want to consider:
- Check Your Employment Contracts: Some employers have clauses restricting secondary employment.
- Avoid Conflicts of Interest: Your second job shouldn’t interfere with your primary job’s responsibilities or confidentiality agreements.
- Manage Your Health and Safety: Long working hours can increase fatigue, so make sure you can safely manage the hours required by both jobs, while maintaining your well-being and performance.
Is It Worth Working Multiple Jobs?
Working multiple jobs is beneficial for:
- Extra income: Extra earnings can help pay bills, pay off debt or help with savings goals like a holiday, further education, or a home deposit.
- Gaining Experience: Diverse roles can enhance your skills and employability.
However, consider the potential downsides:
- Increased Fatigue: Long hours can impact your health, well-being and personal life.
- Tax Implications: As discussed, improper tax management can lead to unexpected bills or bracket creep.
- Work-Life Balance: Limited free time may affect relationships and personal hobbies that you enjoy doing.
Think about your own situation and consider talking to a financial advisor about whether a second job fits your goals and how much you can realistically take on.
How to Ensure You Get a Tax Refund When Working Two Jobs
To maximise your chances of receiving a tax refund:
- Keep Accurate Records: Document all income and work-related expenses. Remember to keep your receipts!
- Claim Eligible Deductions: At tax time, you can claim tax deductions for any work-related items you paid for, including uniforms, travel, tools, education fees or books, and home office expenses.
- Claim the Tax-Free Threshold from Only One Employer: This ensures the correct amount of tax is withheld from your income.
- Consult a Tax Professional Like Etax: They can provide personalised advice and ensure you’re complying with tax laws.
By staying on top of your tax situation and seeking professional help, you can reduce the risk of unexpected tax bills and potentially increase your tax refund.
Super, Leave and Insurance When You Have Two Jobs
When taking on a second job, consider:
- Superannuation: Ensure both employers are contributing to your superannuation, as required by law. Check they are both contributing to your intended super fund.
- Leave Entitlements: Understand how multiple jobs may affect your leave entitlements, especially if both are part-time or casual positions.
- Insurance: Check if your second job affects your insurance policies, including income protection, life insurance and health insurance.
What if Your Second Income Is a Side Hustle?
Not all second incomes come from another employer. If you operate as a sole trader, your business income is generally included in your individual tax return and taxed along with your other income. Unlike wages from an employer, tax may not automatically be withheld from your side-hustle income.
If you are unsure whether your extra income is a hobby or a business, or how to report it, an Etax accountant can help you work out what applies to you.
Note: This information is general in nature and does not constitute professional financial advice. For personalised guidance, consult a registered tax agent or financial advisor.
Reference: ABS statistics about Australians working multiple jobs
Frequently Asked Questions
Not simply because you have two jobs. The ATO combines your income from all sources and calculates your tax based on your total taxable income. However, your combined income may land you in a higher marginal tax bracket. You may also receive a tax bill if not enough tax is withheld by your employers during the year.
Generally, no. If your total income will be more than $18,200, you should usually claim the tax-free threshold from only one employer, normally the employer that pays you the highest salary or wage. If you are certain your total annual income will be $18,200 or less, different rules can apply.
No. It is fine to work two or more jobs in Australia. However, you should check your employment contracts for restrictions, conflicts of interest or confidentiality requirements, and you must declare all of your taxable income.
Claim the tax-free threshold correctly and check how much tax your employers are withholding. If too little tax is being withheld, you can ask an employer to withhold an extra amount from your pay. You can also put money aside to cover a possible tax bill if you prefer.
No. Australia does not have a special second job tax rate. Your final tax liability is based on your total taxable income. Your second employer may withhold more from your pay because you are not claiming the tax-free threshold from that job.
If you are eligible for super, each employer generally needs to pay superannuation on your eligible earnings. Having more than one job may therefore mean you receive super contributions from more than one employer.
If you earn extra income as a sole trader or contractor, tax may not automatically be withheld in the same way it is from wages. You generally need to report taxable business income in your tax return, and you may need to put money aside for tax or to make PAYG instalments.
