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  • Your income if you are under 18 years old

    If you are under 18 years old, special rules apply to the income you earn – certain income may be taxed at higher rates.

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    Income tax rates for people under 18

    Special rules apply to income earned by people under 18 years old. If you are under 18 years old, some of your income may be taxed at a higher rate than an individual income tax rates for adults.

    However, you pay the same individual income tax rates as an adult for:

    • all income you receive if you are an 'excepted person' – this may apply if you
      • have finished full-time study and are working full time
      • have disabilities
      • are entitled to a double orphan pension
    • income you receive as 'excepted income' – this includes
      • your employment or business income
      • Centrelink payments
      • income from a deceased person's estate.

    If you aren't an excepted person, you pay a different rate of tax for income that is not excepted income. This rule was introduced to discourage adults from diverting income to their children.

    Savings accounts and shares

    If your child is under 18 years old and they earn income on their savings account, you may need to consider who declares the interest. If they are under 18 and earn income from shares, you may need to lodge a tax return on their behalf.

    Income from a savings account is treated differently to income from children's shares investments.

      Last modified: 30 Jan 2023QC 16509