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What to Watch Out for When Lodging a Tax Return with Multiple Income Sources

Many people work two jobs, freelance on the side, or earn extra from investments and rental properties. For international students and young professionals, it’s especially normal to juggle casual work while studying.


But while multiple income sources mean more money in your pocket, they also make tax time more complex. Small mistakes, like forgetting a casual job or incorrectly claiming deductions, can lead to ATO penalties, delays, or even a smaller refund than you deserve.


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Here’s a practical guide on what to watch out for when lodging a tax return with multiple income sources and how to get it right.



1. Forgetting Secondary Income


Even if you only worked a casual job for a few weeks, the ATO still expects you to declare that income. Thanks to data-matching, they know what your employers, banks, and investment platforms have reported.


What to be careful about:


  • Always declare all income, even if it’s small.

  • Double-check casual or part-time jobs that you may have left months ago.

  • Not declaring can trigger a tax audit and penalties.



2. Overlapping PAYG Summaries and Income Statements


Each employer you work for provides a PAYG summary or income statement. These are usually pre-filled in your MyGov ATO account but don’t assume they’re always correct or final. Employers sometimes update late.


What to be careful about:


  • Wait until all your employers mark their income statements as “tax ready.”

  • Cross-check figures with your pay slips.

  • Don’t lodge early just because one employer’s statement appears ready.



3. Not Reporting Bank Interest or Dividends


Many people forget about income from bank accounts, shares, or managed funds. Even if you earn just a few dollars in interest, the ATO will see it in their system.


What to be careful about:


  • Include all bank accounts, even joint ones.

  • Report dividends, even if they were automatically reinvested.

  • Double-check ATO pre-fill, but don’t rely on it completely.



4. Claiming Deductions Twice


When you have multiple jobs or income streams, it’s easy to get confused about deductions. For example, you might use the same laptop for both freelance work and a part-time job.


What to be careful about:


  • Don’t claim the full cost twice.

  • Keep receipts and track which expenses belong to which income stream.

  • Use a method like the ATO’s fixed-rate for work-from-home expenses to simplify.



5. Tax-Free Threshold Mistakes


This is one of the biggest pitfalls for people with multiple jobs. The tax-free threshold means the first $18,200 of your income isn’t taxed

but you can only claim it with one employer.


What to be careful about:


  • Tick the tax-free threshold box only for your main job.

  • If you claim it with two employers, you’ll underpay tax and face a bill later.

  • If you’re unsure, stick to claiming with the job that pays you the most.



6. Self-Employment or Side Hustle Income


Do you drive Uber on weekends? Sell items online? Freelance as a designer or tutor? All of that counts as taxable income.

What to be careful about:


  • Declare gig economy and freelance income.

  • Keep detailed records of income and related expenses.

  • If you earn more than $75,000 per year from self-employment, you must register for GST.



7. Rental or Investment Property Income


If you earn rental income, it must be reported. Property investors can claim deductions (like repairs, maintenance, interest on loans), but rules are strict.


What to be careful about:


  • Differentiate between repairs (deductible immediately) and capital improvements (depreciated over time).

  • Declare rental bonds kept as income.

  • Keep all receipts for property-related expenses.



Tips to Get It Right


✅ Gather all documents before you start (income statements, bank summaries, investment records).

✅ Keep a log of work-related expenses tied to each job.

✅ Use the ATO’s pre-fill as a guide, not a complete record.

✅ Lodge with a registered tax agent like Precent to ensure accuracy.



FAQs

Do I need to declare income from overseas if I worked abroad for part of the year?

Yes, if you’re considered an Australian tax resident, you must declare worldwide income.

What happens if I forget to declare a small income source?

The ATO’s data-matching will flag it. You may receive an amended notice and penalties.

Can I split deductions between different jobs?

Yes! but you must be clear on which expense relates to which income. If shared, apportion fairly (e.g., laptop use split by hours worked).


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