Community matters—28 April

The Australian Government provides regular updates to the community on the development and progress of programs and services for Norfolk Island.

Do you have or want a second job? Here is some helpful information from the Australian Tax Office.

From discussions with the Administrator Eric Hutchinson and Mayor Robin Adams, the Department has sought advice from the Australian Taxation Office (ATO) to clarify tax arrangements in circumstances where people may wish to have a second job.

When you lodge your tax return, all your income is lumped together and taxed at the applicable rate.

Norfolk Island residents are entitled to a tax-free threshold of $18,200. This means that the first $18,200 of your yearly income isn't taxed. 

You can claim the tax-free threshold from your employer/s to reduce the amount of tax that is withheld from your pay during the year.

If your income from all sources for the year, including government payments, will be less than $18,200, and you have multiple jobs you can claim the tax-free threshold from each employer.

If your total income for the year will be more than $18,200 you can only claim the threshold from one employer at a time. This should be the employer who pays you the most. Your second employer is then required to withhold tax at the higher, ‘no tax-free threshold’ rate. The same applies if you have three jobs or more. This reduces the likelihood of you having a tax debt at the end of the financial year, when your income is lumped together.

To ensure you are not disadvantaged by having too much or not enough tax withheld when you have multiple jobs, you can apply for a withholding variation by completing a PAYG withholding variation application for Norfolk Island (NAT 2036NI). You should only complete this form if you are certain of the income amounts you will receive during the year.

An application has to be lodged each year, as it is only valid to 30 June. The form will be available on the ATO's website shortly for applications for the 2018–19 financial year.

If you would like further information you can call the Australian Tax Office free of charge. Please don't add the +61 area code before the number as this will incur a fee. The number for workers to call is 13 28 61 and the number for businesses to call is 13 28 66. You can also check the Australian Tax Office website at www.ato.gov.au/Norfolkisland.