Keep more from second job under National

Income from a second job will be taxed at a lower rate under National, leader Don Brash has promised.

He told the party's campaign launch in Auckland yesterday that National would set the default tax rate on secondary work at less than 20c in the dollar, although he did not reveal what the actual rate would be.

Employers generally tax secondary work at 33c in the dollar.

Dr Brash will today unveil National's $3.9 billion-a-year tax-cut plan, and the secondary tax move has been the only hint on it contents.

He told the launch those who took on a second job often found their tax being collected at a very high rate, with the onus falling on them to collect a refund.

"That in itself is a major disincentive to getting ahead, and often the result is that they end up not getting their refund."

He said the tax on secondary employment would be less than 20c in the dollar unless the taxpayer asked - in anticipation of a higher tax obligation - for collection to be at a nominated higher rate.

National finance spokesman John Key said many people were unwittingly paying extra tax on secondary work and did not know they could claim it back.