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  • Higher tax rates

    If you are under 18, you pay the same income tax rates as an adult for all income you receive if you are an excepted person or for your excepted income.

    If you aren't an excepted person, you pay the following tax rates for any income that is not excepted income.

    On this page:

    If you are a resident

    Table: Tax rates for residents who are under 18

    Income

    Tax rates for 2018–19 income year

    $0 – $416

    Nil

    $417 – $1,307

    Nil plus 66% of the excess over $416

    Over $1,307

    45% of the total amount of income that is not excepted income

    If your taxable income is less than $66,667, you will get the low income tax offset. If your taxable income is less than $126,000, you will also get some of the low and middle income tax offset.

    The amount of the offset depends on your income level and how much tax you have paid throughout the year. However, both of these income tax offsets will only reduce tax payable on excepted income.

    See also:

    If you are a non-resident

    Table: Tax rates for non-residents who are under 18

    Income

    Tax rates for 2018–19 income year

    $0 – $416

    32.5% of the entire amount

    $417 – $663

    $135.20 plus 66% of the excess over $416

    Over $663

    45% of the entire amount

    How income is taxed if you are under 18

    Table: How income of a person under 18 years old is taxed

    If you...

    Then...

    Are an excepted person

    • your excepted net income is taxed at adult rates
    • the low income tax offset and low and middle income tax offset will reduce tax payable on your excepted net income if you are eligible for the offsets
     

    Only have excepted income, such as part-time employment income

    • your excepted net income is taxed at adult rates
    • the low income tax offset and low and middle income tax offset will reduce tax payable on your excepted net income if you are eligible for the offsets
     

    Have some excepted income (such as part-time employment income) and some other income (such as a family trust distribution)

    • your excepted net income is taxed at adult rates
    • your other income (after taking away deductions claimed for that income) will be taxed at higher rates
    • the low income tax offset and low and middle income tax offset will only reduce the tax payable on your excepted net income if you are eligible for the offsets
     

    Only have other income (such as a family trust distribution)

    • your other income (after taking away deductions claimed for that income) will be taxed at higher rates
    • the low income tax offset and low and middle income tax offset will not reduce the tax payable on your income even if you are eligible for the offsets
     

    Example

    Example: Excepted and other income

    Kris is 15 years old. She is an Australian resident and has $19,200 of excepted income and $4,000 in other income.

    The tax payable on her income is:

    • Tax on excepted income

    ($19,200 − $18,200 (tax-free threshold)) × 19%

    = $1,000 × 19%

    = $190.

    • Tax on other income

    $4,000 × 45% = $1,800.

    As Kris’ taxable income is less than $37,000, she is entitled to the maximum low income tax offset for minors of $445 and a maximum low and middle income tax offset for minors of $255 which is a maximum of $700 in available offsets. However, the offsets will only reduce her tax payable on excepted income which is $190. With this offset, Kris will not have to pay tax on her excepted income. The unused offset amounts are not refundable.

    As Kris' other income is over $1,307, the total amount of $4,000 is taxed at 45%.

    The net amount payable for all income by Kris is just the $1,800 tax on other income.

    End of example
      Last modified: 08 Aug 2019QC 16509