A second job is not taxed at a higher rate. All your income is added together and taxed at the normal brackets. It feels higher because you can only claim the $18,200 tax-free threshold at one job, so the second job is taxed from the first dollar, and because each employer withholds as though it is your only income.
There is no separate second job tax rate
Australia taxes your total income. Two jobs paying $50,000 and $20,000 are taxed exactly the same as one job paying $70,000. There is no penalty rate for a second employer, and the belief that there is stops a lot of people from taking extra work.
What is different is the withholding, and that is a timing problem rather than a tax problem.
Why the withholding falls short
Every employer withholds using the ATO's tables, which assume the income they are paying you is your only income. If you claim the tax-free threshold with both, each one applies the $18,200 tax-free amount and a share of the lower brackets. Across two employers that allowance is effectively given twice, but you are only entitled to it once.
The result is a shortfall that arrives with your notice of assessment. Here is that shortfall in dollars, at FY2026-27 rates, on the assumption the threshold was claimed at both jobs:
| Main job | Second job | Withheld as two separate jobs | Actually owed on the total | Shortfall |
|---|---|---|---|---|
| $50,000 | $15,000 | $6,270 | $11,295 | $5,025 |
| $60,000 | $20,000 | $9,620 | $16,120 | $6,500 |
| $80,000 | $25,000 | $16,440 | $24,120 | $7,680 |
| $40,000 | $30,000 | $4,764 | $12,920 | $8,156 |
Note the pattern in that last column. The gap is roughly the tax that would have been payable on a second $18,200 of income, which is exactly what you would expect if the threshold has been counted twice.
The fix: claim the threshold once
On the TFN declaration you complete for each employer, you are asked whether you want to claim the tax-free threshold. Answer yes at your highest-paying job only, and no everywhere else. The second employer then withholds from the first dollar, and the total withheld across the year lands much closer to what you actually owe.
Claim it at the higher-paying job rather than the first job you started, because the threshold is worth the same either way but the higher-paying job has the more accurate withholding scale applied to the rest of your income.
When even that is not enough
Claiming the threshold once fixes most of the gap but not all of it, because each employer still applies the lower brackets to the income it pays. If your combined income pushes you into the 37% or 45% bracket while each individual job sits in the 30% band, both employers under-withhold against your real marginal rate.
Two remedies:
- Ask an employer to withhold extra. You can request an additional amount be withheld from each pay using an ATO withholding declaration. This is the simplest way to avoid a bill.
- Set the money aside yourself. If you would rather hold the cash, put your marginal rate on the second job's income into a separate account as it arrives.
The ATO's tax withheld calculator will give you a figure for the extra withholding if you want to be precise about it.
Other things that change with two jobs
- HECS and HELP. Each employer only withholds a study loan amount if your income with them exceeds the threshold. On two jobs of $45,000 each, neither triggers withholding, but your combined $90,000 is well above the $69,528 threshold, so a full repayment of about $3,071 lands at tax time with nothing withheld against it. This is the single most expensive surprise in this area.
- Super. Each employer pays super guarantee separately on what they pay you, so you do get super from both.
- The Medicare levy surcharge. Combined income is what counts, so two jobs can push you over $105,000 even when neither alone would.
- Deductions. Work-related expenses for both jobs are claimable, subject to the usual rules.
Frequently Asked Questions
Is a second job taxed at a higher rate in Australia?
No. All your income is combined and taxed at the ordinary brackets. The second job is taxed from the first dollar because you can only claim the $18,200 tax-free threshold once, which makes the rate on that job look higher than it is.
Should I claim the tax-free threshold on my second job?
Generally no. Claim it at your highest-paying job only. Claiming it at both means too little tax is withheld across the year and you face a bill when you lodge.
How much tax will I pay on a second job?
It depends on your combined income, because the second job sits on top of the first. If your main job pays $60,000 and the second pays $20,000, your total tax and levy rises from $9,620 to $16,120. So the second job costs $6,500 of the $20,000, an average of 32.5% across the slice. That is lower than the 33.5% rate on your next single dollar, because the Low Income Tax Offset stops tapering partway through. Use the calculator with your total income to see the exact figure.
Why do I owe money at tax time with two jobs?
Because each employer withheld as though their pay was your only income. The shortfall is usually close to the tax on one extra tax-free threshold, plus any HECS repayment that neither employer withheld for.
Do I get super from both jobs?
Yes. Each employer pays super guarantee on the ordinary time earnings they pay you, independently of your other employment.
A note on what this is
This guide is general information built from the ATO's published material. It is not tax or financial advice, and it cannot take your circumstances into account. Clearway Apps is not a registered tax agent. Where a decision matters, check it against the ATO page linked in each section or talk to a registered tax agent.