Second Job Tax in Australia: Why Extra Income Is Withheld Higher

Published March 2026 Last updated March 2026

Last reviewed:

Primary tax-year context: Current Australian tax settings

This article is general information only. We maintain pages using primary-source checks and date-based reviews. See editorial policy.

Second JobPAYGIncome Tax

General information only.

A second job is not taxed under a separate “second job tax rate”. Your final tax is calculated on total taxable income across all jobs.

Why withholding can feel higher

  • You usually claim the tax-free threshold from one employer only
  • The second employer withholds using “no threshold” settings
  • Combined income can push part of your income into higher marginal brackets

This is withholding design, not a penalty rate. Your tax return reconciles over- or under-withholding.

Sources

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