Minor tax rates

1 July 2019 – 30 June 2020

Eligible taxable income or unearned income derived by a minor (i.e. a child under age 18) is subject to special tax rates. The low income tax offset and new low and middle income tax offset cannot be used to reduce tax payable on unearned income.

Eligible taxable income

Tax payable

Up to $416

Nil

 

 

$417 – $1,307

Greater of:

l  66% of excess over $416 or

l  difference between tax payable at ordinary tax rates on whole of taxable income and tax on taxable income other than the eligible taxable income at ordinary tax rates

Above $1,307

45%* of eligible taxable income

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