Income of individuals under the age of 18

Income which is not covered by the special rules

Even though a minor may not be an excepted person, ordinary rates of tax still apply to certain types of income. Such income is called excepted income.

Excepted income includes:

• employment income
• taxable pensions or payments from Centrelink or the Department of Veterans' Affairs
• compensation, superannuation or pension fund benefits
• income from a deceased person's estate
• income from property transferred to the minor as a result of the death of another person or family breakdown, or income in the form of damages for an injury they suffer
• income from their own business
• income from a partnership in which they were an active partner
• net capital gains from the disposal of any property or investments listed above
• income from the investment of any of the amounts listed above.

Excepted net income (that is, excepted income minus deductions relating to that income) is taxed at ordinary rates. The low income tax offset will only reduce tax payable on excepted net income.

All other income of a minor who is not an excepted person will be taxed at higher rates. The low income tax offset will not reduce tax payable on this income.