Contributed by: Naomi Smith, Tax Partner at Nexia Australia
The income tax payable on the income of a minor (an individual aged under 18) is subject to special rules. These rules were introduced to discourage income-splitting by diverting income to children, but are not confined to situations where income-splitting is involved.
Under these rules, 'unearned income' of minors over a certain level is taxed at the highest marginal rate of tax. The rules apply to income (including capital gains) derived by a minor directly or through a trust. If the minor is an Australian tax resident, the special rules do not apply if the relevant
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial
Web page updated on 28 Aug 2024 11:42