Money tips

Is it worth getting a second job?

Bringing in more income is a sure-fire way to cut your debt. But is it worth it? Here are the things you need to consider when looking for a second job.

  • Make sure the hours don’t interfere with your main job. This also includes factoring in the time it takes to get ready and get to each job.
  • Make sure there’s still time for family and getting your household chores done. Life still has to happen too.
  • Make sure it pays enough. There are minimum wage laws in NZ if you’re seeking a job but if your income is coming from something you’re producing yourself, be sure to calculate what it’s costing you in labour per hour and price your products accordingly.
  • Be wary of fatigue. Once you’re underway with your second job, you will be more tired but be careful this doesn’t reach unhealthy levels. Lack of sleep can cause serious health issues including high blood pressure, increased susceptibility to illnesses, weight gain and depression.

How does secondary tax work?

Our tax rate is progressive so no matter how many jobs you have, you pay the same amount of tax on all of them at the rate of whatever tax bracket you fall into. These are:

Up to $14,000 – 10.5% tax

$14,001 – $48,000 – 17.5%

$48,001 – $70,000 – 30%

Over $70,001 – 33%

Use the flowchart on the tax code declaration form (IR330) to guide you to the right tax code.

What if I’ve been paying too much tax?

We’re lucky in New Zealand that for the most part, our tax and PAYE system is designed so that most workers pay the correct amount of tax. But it’s not flawless and can be a bit more complicated when you have to factor in things like KiwiSaver, student loan repayments and child support payments. You may also find you overpay your tax when your income crosses a threshold. If you think you’ve overpaid your tax you can either file a tax return or request a Personal tax Summary from the IRD, or do it the easy way and apply through MyTax. In our experience, 9 out of 10 people who apply with us are owed a tax refund and on average it’s around $500!