Tax on children
 

For the tax year just ended does anyone know the tax bands for children and what the low income offset is?

Or to put it another way. How much is a child allowed to earn from saving and other non-earned income before they get hit with the stupidly high tax rate?

:)

Re: Tax on children
 

Bump... anyone?

Re: Tax on children
 

This might help

http://www.ato.gov.au/individuals/co...1/002&st=&cy=1

Re: Tax on children
 

A better page I think

http://www.ato.gov.au/individuals/co...tent/20046.htm

Re: Tax on children
 

G'day

Tax is at the same rate regardless of age, adult and child pay on the same scale although most adults own more than many children.

Under $6,000 - No tax,
From $6,001 to $30,000 - 15%
From $30,001 to $75,000 - 30%
From $75,001 to $150,000 - 40%
Above $150,000 - 45%

Re: Tax on children
 

Perfect. Just what I needed.

Thanks
:)

Re: Tax on children
 

Thanks for that Bob, I know those rates apply if the child is employed, however the ATO has a special rate for children to stop adults splitting their savings income with their kids.

Have a look at this.
http://www.ato.gov.au/individuals/co....htm&page=5&H5

Cheers
:)
PS: The karma message I sent was intended for BayWhale (just in case you get a mixed message). I was sending you one anyway. Thanks. :)

Re: Tax on children
 

Hi there,

Just read this thread. If I'm correct the income of a child can be for example interest earned on a savings account.

So if my son has AUD 8.000,-- at an interest rate of 5% his income is AUD 400, which is below the threshold?

This is...if I get it right ;)...so is it? :)

Cheers, Miranda

Re: Tax on children
 

Sounds right to me.

:)

Re: Tax on children
 

Thanks :thumbsup: