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  • Work out if you receive excepted income

    Even if you aren't an excepted person, some of your income may be excepted income. This means it is taxed at the same rates as if you were an adult. This may apply to your employment or business income, Centrelink payments and income from a deceased person's estate.

    Your 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 you as a result of the death of another person or family breakdown, or income in the form of damages for an injury you suffer
    • income from your own business
    • income from a partnership in which you were an active partner.

    It also includes:

    • net capital gains from the disposal of any property or investments listed above
    • income from the investment of any of the amounts listed above.

    If you have excepted income

    If you have excepted income:

    • your excepted net income (that is, excepted income minus deductions relating to that income)
      • is taxed at the same rates as an adult's net income
      • any tax payable is reduced by any low income tax offset or low and middle income tax offset you are eligible for.
       

    For any other income you receive:

    • you are taxed at a higher rate
    • any tax payable is not reduced by the low income tax offset or low and middle income tax offset.

    If you don't have excepted income

    If you don't have any excepted income, all your income is taxed at the higher tax rates.

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      Last modified: 08 Aug 2019QC 16509