Having two jobs does not put your second income under a separate tax system. What usually causes surprises is how much tax was withheld by each employer during the year.
Second jobs are becoming more common
Some officers pick up secondary employment, casual work, security work, consulting, Defence Reserve work or other side income outside their normal police salary.
Recent Australian Bureau of Statistics data also shows secondary employment is becoming increasingly common. Secondary jobs increased strongly over the year to the June 2026 quarter.
If you earn income from more than one job, it is worth understanding how that income affects your tax return — particularly if you want to avoid an unexpected tax bill.
Do You Pay More Tax Because You Have Two Jobs?
Not exactly.
Australia's income tax system looks at your total taxable income, rather than taxing your second job under a completely separate tax system.
For example, if during the year you earn $90,000 from your police employment and $15,000 from a second job, your tax position is generally based on your combined taxable income.
What can cause confusion is the amount of tax withheld from each employer during the year.
Be Careful With the Tax-Free Threshold
The tax-free threshold is currently $18,200.
According to the ATO, people with more than one payer will generally claim the tax-free threshold from one employer, usually their main employer.
If you claim the threshold from multiple employers when your total income is above the threshold, you may have too little tax withheld during the year. That can result in an unexpected tax bill when you lodge your return.
This is particularly relevant for police officers whose second employment fluctuates throughout the year. For example, you might only work occasional shifts initially but then earn substantially more secondary income than expected.
What About Overtime?
Overtime from your police employer is still employment income.
The amount may already appear in the income information reported to the ATO by your employer. However, increased overtime can push your total taxable income higher than it was in previous years.
That means you should not assume that receiving more tax withheld automatically means you will receive a larger refund. Your final tax result depends on factors including:
- total income
- PAYG tax withheld
- deductible work-related expenses
- investment income
- other employment
- allowances
- Medicare levy considerations
- other applicable offsets and liabilities.
Can You Claim Expenses From Your Second Job?
Potentially — but the normal deduction rules still apply.
Generally, for a work-related expense to be deductible:
- you must have paid for it yourself
- you must not have been reimbursed
- it must directly relate to earning your income
- you need appropriate records where required.
The ATO applies the same basic principles to police work-related expenses. If something is partly private and partly work-related, generally only the work-related portion can be claimed.
Having two jobs does not automatically make normal private expenses deductible.
What If Your Second Income Is Through an ABN?
This requires additional attention.
Income earned as a contractor or sole trader may not have tax automatically withheld in the same way as ordinary salary and wages.
Depending on your circumstances, you could also have obligations relating to:
- business income and expenses
- PAYG instalments
- GST
- record keeping
- superannuation
- business-use assets.
Do not assume that because money was paid into your account without tax being taken out that it is tax-free.
Why Police Officers With Multiple Income Sources Should Review Their Return Carefully
Police returns can already involve areas such as:
- uniforms and protective equipment
- work-related phone usage
- training and education
- professional memberships
- travel in limited circumstances
- equipment
- allowances
- overtime
- investment income.
Add another employment source or side business and the return can become considerably more complicated.
A small withholding mistake during the year can also turn an expected refund into a tax bill.
Have a Second Job? Let PoliceTax Check Your Position
If you are a police officer earning income from more than one source, PoliceTax can review your income, withholding and eligible deductions as part of preparing your return.
Don't guess what you can claim — make sure your return reflects your actual circumstances.
Book your PoliceTax appointment today.