Income of individuals under the age of 18

Income of minors

A minor is a person who is under 18 years of age. Special rules apply to the income of minors.

Under these rules, certain types of income received by minors may be taxed at higher rates.

However, minors who are Australian residents do not have to lodge a tax return if they earn less than $3,334 in the 2010-11 income year. This is because the low income tax offset of $1,500 offsets the tax payable on income less than $3,334.

From 1 July 2011, minors (children under 18 years of age) will no longer receive the low income tax offset to reduce tax payable on their unearned income - for example, distributions from discretionary trusts, dividends, interest, rent, royalties and other income from property. For more information, read Low income tax offset - changes for minors.