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Work out your tax code

Question 4c

If you work over 20 hours a week, earn under $9,880, and do not receive working for families tax credits, choose one of the following options.

If you are ... and ... then ...

younger than 15, or under 18

still at school - see "Definitions" below

your tax code is M as you will be entitled to the tax credit for children - see "Definitions" below.

Write M in the circle under question 2 of the Tax code declaration (IR330) form, then give the completed form to your employer. Make sure you complete questions 1-4 of the IR330.

You can download an IR330 or complete it online - go to "Forms and guides".

younger than 19

still at school - see "Definitions" below, and turned 18 on or after 1 January in the previous tax year

you have a choice of M or ML tax codes as you will be entitled to the tax credit for children or the under $9880 rebate (but not both) - see "Definitions" below.

Write M or ML in the circle under question 2 of the Tax code declaration (IR330) form, then give the completed form to your employer. Make sure you complete questions 1-4 of the IR330.

You can download an IR330 or complete it online - go to "Forms and guides".

older than 15

not at school - see "Definitions" below

your tax code is ML.

Write ML in the circle under question 2 of the Tax code declaration (IR330) form, then give the completed form to your employer. Make sure you complete questions 1-4 of the IR330.

You can download an IR330 or complete it online - go to "Forms and guides".


Definitions

Tax credits for children (formerly child rebate)

You can get a tax credit of $351 each year. That means that if you have filled in an IR330, your boss should reduce your PAYE by $6.75 each week.

If you earned less than $9,880 and left school part-way through the year, you can claim either the tax credit for children (by using the M tax code) or the under $9,880 rebate (by using the ML tax code), whichever is larger. You can't claim both.

At school

This includes primary or secondary schools (whether state or private), an integrated school, or a school providing special education.

 

Example

Megan is 18 and goes to high school. In October she starts a part-time job working after school and weekends. Megan works for 22 hours a week and will earn $6,000 between October and March in this tax year.

Megan chooses the M tax code, and receives the tax credit for children.

Find out more about special tax codes.

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Note

We've provided this decision tree to help you work out your tax code. We welcome your feedback on how useful you found it.

 


Date published: 01 Jul 2008

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