Rates of Income Tax - Minors

The following rates apply if a minor (a person under age 18 on 30 June):

> is a resident of Australia for the whole financial year, and

> is not an excepted person (1), or

> has no excepted income (2).           

The rates below do not include the Medicare Levy or the Flood Levy.

(1) Ordinary ‘adult’ rates of tax apply to all the income of an excepted person. See below for who is an excepted person.

(2) Excepted net income - that is, excepted income minus deductions relating to that income - is taxed at ordinary ‘adult’ rates.  All other income of a minor who is not an excepted person will be taxed at the higher rates shown below. See below for what is excepted income.

2017/2018, 2018/2019, 2019/2020, 2020/2021 and 2021/2022

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 66% of the excess over $416
Over $1,307	45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

From 1 July 2011 the low-income tax offset will only reduce tax payable on ‘excepted income’.  It cannot be used to reduce tax on ‘eligible income’ for most minors.  The tax-free threshold for ‘eligible income’ is therefore $416.

The LITO restriction does not apply to minors who are excepted persons – see below for definition.  For them the tax-free threshold is $988.

2014/2015, 2015/2016, 2016/2017

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 68% of the excess over $416
Over $1,307	47% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

From 1 July 2011 the low-income tax offset will only reduce tax payable on ‘excepted income’.  It cannot be used to reduce tax on ‘eligible income’ for most minors.  The tax-free threshold for ‘eligible income’ is therefore $416.

The LITO restriction does not apply to minors who are excepted persons – see below for definition.  For them the tax-free threshold is $988.

2013/2014, 2012/2013

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 66% of the excess over $416
Over $1,307	45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

From 1 July 2011 the low income tax offset cannot be used to reduce tax on eligible income for most minors.  The tax-free threshold for this type of income is therefore $416.

The LITO restriction does not apply to minors who are excepted persons – see below for definition.  For them the tax free threshold is $988.

2011/2012

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 66% of the excess over $416
Over $1,307	45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

From 1 July 2011 the low income tax offset cannot be used to reduce tax on eligible income for most minors.  The tax-free threshold for this type of income is therefore $416.

The LITO restriction does not apply to minors who are excepted persons – see below for definition.  For them the tax free threshold is $3333.

2010/2011

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 66% of the excess over $416
Over $1,307	45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $3,333.  This is because the low income tax offset of $1,500 offsets the tax payable on income up to $3,333.

2009/2010

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 66% of the excess over $416
Over $1,307	45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $3,000.  This is because the low income tax offset of $1,350 offsets the tax payable on income up to $3,000.

2008/2009

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 66% of the excess over $416
Over $1,307	45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $2,667.  This is because the low income tax offset of $1,200 offsets the tax payable on income up to $2,667.

2007/2008

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 66% of the excess over $416
Over $1,307	45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $1,666.  This is because the low income tax offset of $750 offsets the tax payable on income up to $1,666.

2006/2007

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,307	Nil + 66% of the excess over $416
Over $1,307	45% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $1,333.  This is because the low income tax offset of $600 offsets the tax payable on income up to $1,333.

2005/2006 and 2004/2005

Eligible Income*	Tax rates
$0 – $416	Nil
$417 – $1,445	Nil + 66% of the excess over $416
Over $1,445	47% of the total amount of income that is not excepted income

* Excludes ‘excepted income’.

The tax-free threshold is $772.  This is because the low income tax offset of $235 offsets the tax payable on income up to $772.

From 2017/2018, 2018/2019, 2019/2020, 2020/2021 and 2021/2022

The following income tax rates apply:

Income*	Tax rates
$0 – $416	32.5%
$417 – $663	$135.20 + 66% on income above $416
Over $663	45% of the total amount of income

* Excluding ‘excepted income’.

Non-residents are not required to pay the Medicare Levy.

There is no tax-free threshold.  The low-income tax offset does not apply.

From 2014/2015, 2015/2016, 2016/2017

The following income tax rates apply:

Income*	Tax rates
$0 – $416	34.5%
$417 – $663	$143.52 + 68% on income above $416
Over $663	47% of the total amount of income

* Excluding ‘excepted income’.

Non-residents are not required to pay the Medicare Levy.

There is no tax-free threshold.  The low-income tax offset does not apply.

From 2012/2013 to 2013/2014

The following income tax rates apply:

Income*	Tax rates
$0 – $416	32.5%
$417 – $663	$135.20 + 66% on income above $416
Over $663	45% of the total amount of income

* Excluding ‘excepted income’.

Non-residents are not required to pay the Medicare Levy.

There is no tax-free threshold.  The low income tax offset does not apply.

From 2006/2007 to 2011/2012

The following income tax rates apply:

Income*	Tax rates
$0 – $416	29%
$417 – $733	$120.66 + 66% on income above $416
Over $733	45% of the total amount of income

* Excluding ‘excepted income’.
 

Non-residents are not required to pay the Medicare Levy.

There is no tax-free threshold.  The low income tax offset does not apply.

2005/2006 and 2004/2005

The following income tax rates apply:

Income*	Tax rates
$0 – $416	29%
$417 – $810	$120.66 + 66% on income above $416
Over $811	47% of the total amount of income

* Excluding ‘excepted income’.

Non-residents are not required to pay the Medicare Levy.

There is no tax-free threshold.  The low income tax offset does not apply.

A prescribed person is one who is:

 

>under 18 on 30 June of the tax year and

>who is not an excepted person

 

In other words, a prescribed person is a minor whose unearned income is taxed at a special rate.

 

A minor is an ‘excepted person’ if on 30 June at year end:

 

> they were

- working full time, or had worked full time for three months or more in              the current year (ignoring full-time work that was followed by full time              study)

- intending to work full time for most or all of the next year, and

- not intending to study full time in the next year.

> they were entitled to a disability support pension or rehabilitation allowance, or someone was entitled to a carer allowance to care for them

> they were permanently blind

> they were disabled and were likely to suffer from that disability permanently or for an extended period

> they were entitled to a double orphan pension and received little or no financial support from relatives, or

> they were unable to work full time because of a permanent mental or physical disability and received little or no financial support from relatives.

 

 

Eligible income is so much of the taxable income that is not ‘excepted income.’

 

‘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 the minor as a result of the death of another person or family breakdown, or income in the form of damages for an injury they suffer

 

> income from their own business

 

> income from a partnership in which they were an active partner

 

> net capital gains from the disposal of any property or investments listed above

 

> income from investment of any of the amounts listed above.