Tax Rules for Children: What Every Parent Should Know (June 25 Tax Update)

Relevant For:

Parents and guardians of children under 18 who earn income or hold savings.

Key Points:

• Children under 18 are taxed differently to adults unless they earn “excepted” income (e.g. wages).
• Minor tax rates apply: earnings over $416 may be taxed up to 66% or 45%.
• Interest over $420 may be taxed at 47% unless a TFN is provided.
• Children can apply for a TFN at any age – useful for refunds or bank compliance.
• If income is genuinely your child’s, they may need to lodge a return; otherwise, it might be yours to declare.

Full Article:

As a parent or guardian, it’s vital to understand how tax rules affect your child’s income, whether from a bank account, shares or part-time work. Helping them get it right early not only avoids penalties, but, also builds sound financial habits for the future.

When Tax Applies to Your Child’s Money