ATO tax bill warning

By Romeo Caporaso in his recent interview for 7 News.

How to reduce your tax debt if you work two jobs

If you work two jobs, you may risk ending with a tax debt at the end of the year. This is because your employer withholds tax from your pay based on the assumption that you only have one job. If you earn more than the tax-free threshold from all of your jobs combined, you may end up owing tax to the Australian Tax Office (ATO).

Read our interview on 7News about it as well.

Here are a few tips to help you reduce your tax debt if you work two jobs:

• Claim the tax-free threshold from one employer only: When you start a new job, you will be asked to complete a tax file number declaration form. On this form, you will need to choose whether or not you want to claim the tax-free threshold from your new employer. If you are already claiming the tax-free threshold from another employer, you should choose not to claim it from your new employer. This will ensure that more tax is withheld from your paychecks, which will help to reduce your tax debt at the end of the year.
• Ask your employer to withhold more tax: If you are still worried about owing tax at the end of the year, you can ask your employer to withhold more tax from your paychecks. You can do this by completing a PAYG withholding variation application. This form can be found on the ATO website.
• Make tax payments throughout the year: If you know that you are going to owe taxes at the end of the year, you can make tax payments throughout the year. This will help to reduce the amount of tax that you owe in one lump sum. You can make tax payments online through the ATO website or by mail.

If you do end up with a tax debt, the ATO has a number of repayment options available. You can find out more about these options on the ATO website.

By following these tips, you can help to reduce your chances of having a tax debt at the end of the year.

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