Why You Might Owe More Tax Than You Think

If you worked more than one job this year, there is a fair chance your tax return won’t land quite the way you expect and we’d rather warn you now than surprise you at the end.

Every Australian gets one tax-free threshold: the first $18,200 you earn each year, on which no tax is payable. When you start a job, your employer asks whether you’d like to claim it. The problem begins when you answer ‘yes’ to two employers at the same time.

Each employer then withholds tax as though they’re the only one paying you effectively applying the tax-free threshold twice. Your take-home pay looks healthy through the year. But you’re only entitled to that $18,200 once. When we add both incomes together at year end, the tax actually owed is higher than the amount withheld, and that gap becomes a bill.

This catches people out even when the jobs don’t overlap. A common example: you finish one job, receive a holiday pay payout, then start somewhere new straight away. For a short window, both employers are applying the threshold giving you two tax-free thresholds for the same period.

There is a second trap. Your second wage stacks on top of your first, which can push that income into a higher tax bracket than either employer accounted for. Again, not enough tax comes out along the way.

The fix is simple going forward: if you’re juggling two jobs, claim the tax-free threshold on only one, ideally the higher-paying role and let the second withhold at the full rate. Each pay may be a little lighter, but you’re far less likely to face a surprise bill at tax time.

If you’ve had more than one employer this year or you’re about to start a second job, it’s worth a quick conversation with us before you lodge your return. Get in touch and we’ll make sure there are no surprises.

t: +61 7 3177 4120
e: advisors@hksrussell.com

Posted on July 13, 2026 by Charisse Russell - Articles