How tax applies if you're under 18 years old
Special rules apply and you pay tax on certain income types at a higher rate on income you receive if you're under 18 years old. This rule was introduced to discourage adults from diverting income to their children.
If you aren't an excepted person or receiving excepted income, you pay tax on that income as below depending on your residency.
You pay the same individual income tax rates as an adult if you're an excepted person and receive excepted income.
If you are a resident
|
Income |
Tax rates |
|---|---|
|
$0 – $416 |
Nil |
|
$417 – $1,307 |
Nil plus 66% of the excess over $416 |
|
Over $1,307 |
45% of the total amount of the income that is not excepted income |
|
Income |
Tax rates |
|---|---|
|
$0 – $416 |
Nil |
|
$417 – $1,307 |
Nil plus 66% of the excess over $416 |
|
Over $1,307 |
45% of the total amount of the income that is not excepted income |
If you are a non-resident
|
Income |
Tax rates |
|---|---|
|
$0 – $416 |
30% of the entire amount |
|
$417 – $713 |
$124.80 plus 66% of the excess over $416 |
|
Over $713 |
45% of the entire amount |
|
Income |
Tax rates |
|---|---|
|
$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
|
If you... |
Then... |
|---|---|
|
Are an excepted person |
your excepted net income is taxed at the same individual income tax rates as an adult |
|
Only have excepted income, such as part-time employment income |
your excepted net income is taxed at the same individual income tax rates as an adult |
|
Have some excepted income (such as part-time employment income) and some other income (such as a family trust distribution) |
|
|
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 |
To check the individual tax rates of an adult, see: