Planning for tax during the year, not just at tax time

Two jobs at once

• The tax-free threshold ($18,200 a year) should only be claimed on the Tax file number declaration for one employer — usually whichever pays you the most. Tick 'no' on the others.
• Even done correctly, having two jobs can still leave you owing tax at year-end. Each employer withholds as if that job were your only income, so the combined income can land in a higher bracket than either employer withheld for on its own.
• The ATO's 'Tax withheld for individuals' calculator can show roughly where you'll land once both incomes are combined, so a bill at tax time isn't a surprise.

Changed employer during the year

• Give your new employer a fresh Tax file number declaration — including the question about a HELP, VSL or other study and training support loan. Miss that, and they won't withhold the extra amount your loan requires, which shows up as a shortfall at tax time.
• A termination payout from your old job is taxed differently depending on what it's made up of: unused annual leave and leave loading, unused long service leave, and any genuine redundancy or employment termination payment (ETP) component each have their own tax treatment and rates, generally lower than your normal marginal rate.
• A genuine redundancy payment has a tax-free component (a base amount plus a set amount for each full year of service, indexed every year) before the ETP rules apply to the rest. Amounts above the ETP cap ($260,000 for 2025–26) are taxed at the top rate plus the Medicare levy.
• Had a PAYG withholding variation in place with your old employer (for example, for a work-related deduction or rental loss)? It doesn't carry over — you'll need a new one with your new employer if you still want it.

ATO: Employment termination payments ↗

Extra income on the side

• Driving for a rideshare app, renting out a room or a property on Airbnb, selling online, content subscriptions, or any other side income is assessable, and almost none of it has tax withheld as it's paid to you.
• Same goes for bank interest, dividends and managed fund or ETF distributions — paid in full, with nothing held back, and taxed at your marginal rate when you lodge.
• A simple habit: whenever this kind of income lands, move a percentage of it (roughly your marginal tax rate) into a separate account you don't touch. It's far less painful than finding the whole amount in one go in July.
• If this becomes a regular, larger part of your income, the ATO may put you onto quarterly PAYG instalments, which spread the tax through the year instead of one lump sum at the end.

No private hospital cover, and your income climbed

The Medicare levy surcharge is based on your income for the whole year, not the rate you were on when you last checked. A bonus, a pay rise, a second job or extra income on the side can tip you over the threshold without you noticing until your return is done — and because it's assessed for the full year, there's no undoing it retrospectively once 30 June has passed.

If your income has gone up and you don't have private hospital cover, it's worth checking the current thresholds before the year ends. See our article on the Medicare levy surcharge for the full detail.

Other situations worth a mid-year check

• A bonus, overtime or a promotion: besides pushing you into a higher tax bracket, if your combined income and concessional super contributions go over $250,000 for the year, the extra super contributions attract an additional 15% tax under Division 293 — easy to trigger with a one-off bonus even if your normal salary is well under that.
• Selling shares, crypto or an investment property: the capital gain is taxed in the year you entered the contract (property) or disposed of the asset (shares, crypto), not the year settlement money actually lands in your account — a sale in June can mean the tax is due the following year with very little time to plan for it.
• Taxable government payments: Paid Parental Leave and most Centrelink payments like JobSeeker are taxable income, but the amount withheld doesn't always match what you'll actually owe once combined with other income earned in the same year.
• Your HELP, VSL or other study and training support loan: the debt is indexed every 1 June, and extra income (including from a new job, a side hustle, or investment income) can push your repayment income over a threshold, or into a higher one, for the first time.

What to actually do about it

• Hit one of these this year? Send us a message rather than waiting for your appointment — a quick estimate mid-year is far more useful than finding out in July.
• Use the ATO's 'Tax withheld for individuals' calculator after any change: new job, second job, or a pay rise.
• Want more withheld to avoid a bill, or less because you expect deductions? A PAYG withholding variation with your employer adjusts it going forward — but it has to be set up again with each new employer.
• Keep a separate account for anything paid to you without tax withheld, and move a percentage across as it arrives.

Quick checklist

• Only one employer has the tax-free threshold ticked on your TFN declaration.
• Every new employer has your current TFN declaration, including your HELP/study loan status.
• A side income or investment income has a 'set aside' habit, not an end-of-year scramble.
• A bonus, redundancy or asset sale this year has been checked against Division 293, the ETP cap, and the Medicare levy surcharge thresholds.
• Anything that's changed gets a quick message to us when it happens, not left for your next appointment.