Your first job


Starting your first job is one of life’s most exciting times.  While you are enjoying the freedom of financial independence, it is crucial to develop good money management skills to keep you on a solid financial footing.

Get a tax number

When you start a job you must give your employer your tax file number and your bank account details.  You must do this so your employer can pay you.  You must register yourself with the Inland Revenue Department so that you are provided with your personal income tax number.  You can contact the Department on 2296 2296 or

Do I have to pay tax?

The Table below presents the tax rates for basis year 2016.


Depending on your income and whether you decide to opt for a single, married or parent rate, your employer will deduct from your wage or salary the income tax owed and your social security contribution.  This means you will receive a wage or salary that is net of income tax and social security contributions paid).  You can use this calculator to calculate the income tax you should pay .

In the second quarter of a new year your employer will provide you with a form titled ‘FS3’.  This form will show the total income you received in the previous year – including fringe benefits, allowances, etc. – and the income tax and social security contributions you paid during the course of the year.

If you are employed with more than one employer, you will receive such an FS3 form from each employer. 

You are to submit your income tax form by not later than 30th June (this will be your year of assessment i.e.2016).  You submit an income tax form only if your level of income for the base year (the year before the year of assessment i.e. 2015) you are submitting your income tax return has changed from that of the year previous (i.e. 2014) to the current base year.

It is important that you submit this form in time as you will otherwise be subject to high interest fines. 

If you have an e-id Authentication (e-ID) you click here  and register with IR Services on-Line where in you can submit your income tax form and pay any tax arrears on-line.


Check your payslip

It is important to check your payslip to see you are getting the right pay.  Employers do make mistakes.

Watch your spending

While you may be thrilled by the purchase power of your wage because of your first job, make sure that your spending does not exceed your  income.

Start saving for your retirement egg nest

Getting married, having a first child, buying a house, retiring – may all seem a long way off.  Probably your immediate priority would be to buy a car. 

Before you do so make it a habit to save part of your income every month.  Regular saving is an excellent habit to get into. The earlier you start saving, the more money you will have to meet your various financial goals during the rest of your working life and in retirement.

You may wish to consider taking out a private retirement pension plan – they are now available on the market - so that you start preparing for your retirement – far away as it may seem to be.  It is never too early to start planning for your retirement. Think of the day you headed off to kindergarten with your parents' hoping to prepare you for success in a world that seemed years away - suddenly you are there.  Likewise, you need to prepare for your retirement well in advance.  Thanks to the power of compound interest, the earlier you start saving the faster your savings will grow.

Create a budget

Budgeting involves making a list of all your expenses, and comparing it against your cash inflows.  Use the following budget calculator to record all of your incomings and outgoings, which give a breakdown of where your spending goes each week, month or year. 

Once you have a clear idea of your budget, work out a fixed amount that you can save each month and stick to it.


Last updated: Sep 07, 2016