Two Jobs: Which One Gets the Tax-Free Threshold, and What If You Claim It Twice?
Withholding from two jobs compared with the real yearly tax: claimed once it roughly evens out, claimed twice it leaves a bill. Three worked examples.
By the MoneyBackKit AU team · Updated 28 October 2026 · 3 min read
The tax-free threshold means the first $18,200 of your income each year isn't taxed. When you start a job, the TFN declaration asks whether to claim it. With two jobs you normally claim it from one employer only, usually the one that pays more.
What happens with each choice (2026-27)
| Pay a fortnight (two jobs) | Tax + Medicare due for the year | Withheld, threshold claimed once | Left to pay (− = refund) | Withheld, threshold claimed twice | Left to pay |
|---|---|---|---|---|---|
| $1,500 + $600 | $7,811 | $6,552 | $1,259 | $3,848 | $3,963 |
| $2,200 + $900 | $16,312 | $13,052 | $3,260 | $9,516 | $6,796 |
| $3,000 + $1,200 | $25,464 | $21,788 | $3,676 | $17,732 | $7,732 |
Claimed once, the amount withheld lands close to the real tax. Claimed twice, both employers skip tax on the first part of your pay, and you get a tax bill when you lodge.
Getting it right
- Claim the tax-free threshold from the job that pays more.
- For the second job, tick "no" on the TFN declaration (or the withholding declaration if you change it later).
- If your total income is close to a bracket line, you can ask the second employer to withhold extra.
- If you only earn a little from each job and your total is under $18,200, you can claim it from both.