A second job in Australia does not have its own special tax rate — but it will appear to be taxed more heavily than your first job. This is because you can only claim the tax-free threshold from one employer, and your combined income may push you into a higher tax bracket. The good news is that your end-of-year tax return adjusts everything to the correct amount.
Why a Second Job Appears Heavily Taxed
The Australian tax system taxes your total annual income at progressive rates. If you earn $70,000 from your primary job and $15,000 from a second job, your total taxable income is $85,000 — and the second job’s $15,000 is taxed in the bracket that applies on top of $70,000.
At $70,000, you are already well into the 32.5% bracket. So that $15,000 from the second job is taxed at 32.5% from the first dollar, rather than starting at 0%.
Additionally, you can only claim the tax-free threshold at one employer — typically the one where you earn the most. At your second job, you do not claim the threshold, which means withholding starts immediately.
Setting Up Withholding Correctly
When you start a second job, you fill in a Tax File Number (TFN) Declaration for the new employer. On that form, you indicate that you are NOT claiming the tax-free threshold (because you are claiming it at your primary employer).
This prompts your second employer to withhold tax at the higher “no-threshold” rate, which better matches your likely marginal rate given you already have other income.
Important: If you mistakenly claim the threshold at both jobs, each employer will withhold less tax assuming you have low income. You will end up with a significant tax bill at the end of the year.
What Tax Rate Is Applied to a Second Job?
Your second employer uses the “no tax-free threshold” withholding scale, which starts at 19% from the first dollar. However, the actual marginal rate applied depends on your total income.
| Total combined income | Marginal rate on second job income |
|---|---|
| First job income already in 32.5% bracket ($45,001+) | 32.5% (or higher) on second job income |
| First job income in 19% bracket ($18,201–$45,000) | 19% on second job income up to $45,000 bracket, then 32.5% above |
Because PAYG withholding is calculated per employer based on an annualised version of just their payment, it will rarely be exactly right — the reconciliation at tax time corrects this.
Will I Get a Refund or Owe Money?
It depends on whether the combined withholding from both jobs is more or less than your actual tax liability.
- If both employers withheld conservatively → likely a refund
- If second job was set up without notifying them of your other income → likely a bill
- If you correctly notified the second employer that you are not claiming the threshold → usually close to correct
If you want to be more precise, you can apply for a PAYG withholding variation through the ATO, which adjusts the withholding at one employer to more accurately reflect your total situation.
Super on a Second Job
Your second employer must also pay the 12% superannuation guarantee on top of your wages (for FY2025–26, rising to 12%). Super is paid for each employment relationship independently — there is no combined cap on what employers must contribute, though the concessional contribution cap of $30,000 per year applies across all super sources.
Frequently Asked Questions
Do I pay more tax overall just because I have two jobs? No. Your total income tax is the same whether that income comes from one job or two. The progressive system taxes total income, not individual jobs. The only difference is how the withholding is distributed between employers during the year.
Should I tell my second employer about my first job? You do not need to disclose your other income to your employer. But you should not claim the tax-free threshold at the second job. The ATO does not require employers to know your total income — that is reconciled through your tax return.
Can I avoid paying extra tax by splitting income with a partner? Income splitting is not generally available to employees in Australia. Each person’s income is taxed individually. For business owners and investors, some legitimate income-splitting arrangements exist through trusts and partnerships, but these are complex and require professional advice.
What if my second job is cash in hand — do I still need to declare it? Yes. All income — including cash payments — must be declared on your tax return. Cash-in-hand income is assessable income under Australian tax law, and the ATO has data-matching capabilities to identify unreported income.
If I leave a second job partway through the year, will I get a refund? Often, yes — because the withholding was calculated based on full-year earnings at that job. When you lodge, the lower actual income results in a smaller tax liability and potentially a refund of the over-withheld amount.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent or accountant. Find one through the Tax Practitioners Board register.