Under 18 year old individuals working as employees have special rules that apply to the income they earn. Certain income may be taxed at higher rates. If you are under 18 years old, some of your income may be taxed at a higher rate than an individual’s 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 are a resident – Tax rates for residents who are under 18
| Income | Tax rates for 2020–21 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 some of the low income tax offset
If you aren’t an excepted person, you pay a different rate of tax for income that is not excepted income. This rule reinforces the need for education at a child’s early secondary schooling years.
For further information, please contact us & we’ll be happy to answer any question you may have on the topic.