• Your income if you are under 18 years old

    Special rules apply to income earned by people under 18 years old. Under these rules, certain types of income, such as a distribution for a family trust, may be taxed at a higher rate.

    Income tax rates for people under 18

    If you are under 18 years old, some of your income may be taxed at a higher rate than an adult.

    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, or are entitled to a double orphan pension
    • income you receive as 'excepted income' – this includes your employment or business income, Centrelink payments and income from a deceased person's estate.

    If you are not 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.

    See also:

    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 shares investments.

    See also:

    Next step:

    Work out if you're an excepted person

    If you are an excepted person, all your income is taxed at the same rate as if you were an adult. This may apply to you if you are a minor and you:

    • have finished full-time study and are working full time
    • have disabilities
    • are entitled to a double orphan pension.

    On this page:

    Full time worker

    You are considered to be an excepted person if all of the following apply on the last day of the relevant income year (30 June):

    • you were working full time, or had worked full time for a total of three months or more in that income year
    • you are, in the following income year, both
      • intending to work full time for most or all of it
      • not intending to study full time.

    When you are working out how long you had worked full time, ignore the periods of full-time work you did before your full-time study.

    Person with a disability

    You are an excepted person for the relevant income year if you were either:

    • the main beneficiary of a special disability trust
    • on the last day of the income year (30 June), either
      • entitled to a disability support pension or someone was entitled to a carer allowance to care for you on the last day of the income year
      • certified permanently blind
      • disabled and likely to suffer from that disability permanently or for an extended period
      • unable to work full time because of a permanent mental or physical disability and you received little or no financial support from relatives.

    Person with a double orphan pension

    You are an excepted person for the income year if on the last day of the income year, you were entitled to a double orphan pension and you received little or no financial support from relatives.

    If you are an excepted person

    If you are an excepted person, you pay the ordinary income tax rates, as listed in Individual income tax rates, on all your income.

    If you are not an excepted person

    If you are not an excepted person, you need to work out if you receive any excepted income. This income will be taxed in the same way as income an adult receives.

    Next step:

      Last modified: 14 Sep 2017QC 16509