Anyone here have two jobs?

Hi guys and girls,

Just wondering if anyone here has or had two jobs at anytime?

Been thinking of finding a second job during the day(part time) to save more and reduce debt I currently work afternoons 330-12 am 5-6 days per week.

So any sort of retail job could work out

What sort of tax would I pay on this extra income? Currently make about 55k per year.

I was hoping to find something part time and earn an extra $300 per week after tax..

Also how does this affect borrowing power? Does second job count towards finance?

Thanks

 

I have a day job which I work 5 to 7 times a week. I have a second supermarket job but I only work one evening every so often.. I keep this job so I can keep my discount card So not used at all for income reasons!

Taxwise: during the year it would depend if you elect to claim the tax free thresehold during the year (could be pretty good for cashflow)

The income won't push you into the next tax bracket, so you don't need to worry about that.

If you have the time and the energy.. Go for it! But be on the lookout for signs of burn out!

Edit: Also, income is income. It would count towards finance, but you may need to hold the job for a certain period of time.

 

You will be handing over around 32.5% of your income from your new job to the tax man. I wouldn't advise ticking the tax free threshold as the tax will still be owed, you will just get a nasty surprise come tax time.

32.5% is the tax bracket, but we all know it's more complicated than that depending on a whole heap of other factors.

Here is a toy for you to play around with
http://www.paycalculator.com.au/

 

Hi Johnny

As a general rule yes the second job will contribute towards serviceability for loans.

You mentioned you are currently on $55k and aim to get a second job that clears $300 per week. This will put you in the next tax bracket, so while you'll be taking home more money, it probably won't feel in proportion with how many hours of work you have put in.

You might ponder squirreling some of it away by salary sacrificing into superannuation with a view to using this for investing when there is enough. It is easiest to control the destiny of your fortuntes in super if you are running a Self-Managed Super Fund (a vehicle through which it is possible to acquire property, get loans etc.)

Salary sacrificing in this manner would help reduce your taxable income while simulataneously building a balance in super.

 

Correct me if I'm wrong but he wont hit the next tax bracket until he earns $80k and his new income will be $70k and some pocket change, less any deductions he may have.

So he will pay 32.5c in the dollar to the tax man. Or practically speaking he will be giving about $100 a week of his $300 to the tax man?

 

But setting up a SMSF looks so scary, and time consuming……

 

Johnny - have you considered trying to earn more at existing job? E.g. doing overtime or a course / qualification that will increase your salary?

 

Is it possible that you work for a not for profit organization? If so, your taxable incom e is already reduced due to salary sacrificing.
Yes I have a 2nd job and am paid more than double per hour. It's worth it whether I get some of the excessive tax back or not. Exhausted though. It has a time limit.

 

Do you know anyone you that you can get some cash work from? That would make things easier that tax man is always out to make life difficult!

 

Or you could pay tax like everyone else, rather than expecting everyone else to pick up your tab?

 

Or get a better paying job....Unfortunately I have many interests which all pay handsomely so cumulatively they throw tax scales right out the window even though tax is contributed at the 'right' level for each income stream.

Strategies like salary sacrifice do help as 15% is better than 42% + mediscare.

 

And an honourary role as Moderator at PC?

 

Just add the gross up from each job to check how much tax you should be paying.

 

Salary packaging is excellent. If you have a chance to get a job that offers salary packaging, you can really use it to your advantage by claiming all your restaraunt meals, hotels/accommodation and usually between 9k-15k for mortgage/rent/c.card bills. I find a lot of my colleagues that have it don't take full advantage of it. Anyway, regardless of having salary packaging or not, you are always better off working more, you certianly don't earn less and it helps when you apply for loans.

 

Go to a grave yard and find yourself a name and a date of birth similar to your age . Chances are, the dearly departed hasn't lodged a final tax return.........whoa, Johnny be good.

 

I thought you were a dead ringer for a mate of mine @datto (after she went under the 22 wheeler).

They prolly haven’t updated their status on FB or Tinder etc - cyber stalk the dead for extra credibility.

 

Not exactly because the second job he mentioned he said would in theory be $300 per week AFTER tax, not before tax.

 

Who told you that? No doubt an operator that likes to pretend it is super scary to justify their exorbitant fees.

It is most certainly not scary. Anyway... presuming you use someone trustworthy and knowledgeable, the effort is on their shoulders, not yours.

Keep in mind that you only need to set up one SMSF per lifetime, so you do it once and them injoy the fruits of your labor.

The setup for you would mean choosing a name for your SMSF, setting up a bank account for it and ordering rollovers from your current super fund. Thereafter you get the SMSF records in order for the SMSF tax accountant each financial year end. Not a huge job and certainly worth the effort for being able to access so many more investment options through super.

 

Thanks, Jacqui.

It's already on the 'to do' list, along with sourcing and buying my first IP, and getting some sleep…….