Tax Free Threshold Questions

Heracles26 on 03/05/2016 - 18:44

Hi all, I am back again with more questions!

I work in the health care sector 6 days a fortnight. I also do tutoring on the side though this is all done freelance and I am not associated with any company or anything.

In my health care job I make ~$1500 gross a fortnight. Of this $1500, approx. $650 is salary sacrificed and then I am taxed on the remaining $850.

Would it be possible for me to claim the tax free threshold with this job? I only recently started with this company and I originally completed the tax declaration form stating that I did not want to claim the tax free threshold but now that I've done some more research into it I think it would be the smart thing to do.

If I was to claim the tax free threshold for this job, would I be taxed at a higher rate for my tutoring income?

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Comments

  • retiredfeline on 03/05/2016 - 18:55
    +2

    You normally claim the tax free threshold on your primary job. In the end it works out to be the same total tax, only difference is whether you keep more of your pay as you go or you get a refund at the EoFY. Obviously the former is more desirable.

  • argonide on 03/05/2016 - 18:57

    You can only claim the tax free threshold on one job. So one of your jobs will be taxed at a higher rate.
    But when you lodge your tax return, the total income for your jobs is combined and the tax you need to pay that year is based on that minus other deductions. If you payed more tax then you need to you'll get a refund, if you payed less tax then you'll owe the ATO money.

    • Heracles26 on 03/05/2016 - 19:03

      Ah I see thanks!

    • tomsco on 03/05/2016 - 20:21

      Not quite true. They want you to only claim the tax three threshold once, but you will not be punished if you claim it multiple times.

      Regardless, the way the OP described his tutoring job, it has not currently fallen in the PAYG realm. Once he lodges his tax return, the ATO may or may not require him to complete quarterly PAYG Instalments.

  • rambutann on 03/05/2016 - 23:54

    I once worked 6 jobs, 1 full time job and 5 casual jobs. I claimed tax free threshold on all but one casual job with no repurcutions.

    My philosophy was that I could earn interest off the money I would have paid in tax so yeah.

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