From 1 April 2012 the tax credit for children was withdrawn and replaced with a limited income exemption for children. The main change was that employers and schedular payment payers are now required to deduct tax from the payments they make to children regardless of their level of income. As this happened during the year there was a transitional process where some payers could continue to not make deductions until 31 March 2013.
Under the new limited income exemption, a school child does not need to pay tax on income of less than $2,340 which would not ordinarily be taxed before they were paid.
You may need to pay tax on any income you have received that hasn't already had tax taken out of it.
Read this information if you:
This could be:
If all your income for the tax year had tax taken out before it was paid to you, you will not qualify for the income exemption. However, you may want to check if you need to file a tax return or receive a personal tax summary for any other reason.
A payment of pocket money (an allowance) from your parent, caregiver or immediate relative is unlikely to need to be taxed if it is a basic living allowance or gift.
It is likely that tax hasn't been taken out of any payment you received if you:
Read about the 3 situations where you may not have had tax taken out of your income
The exemption applies. This income is tax-exempt and is not included in an income tax return or personal tax summary.
You may be required to file a tax return or receive a personal tax summary for another reason. Check if you need to file a return. You do not need to include exempt income.
The exemption doesn't apply. You are required to file an income tax return and include all your income.
You'll need to include both your untaxed income and any income you received with tax taken out during the year. Don't include any payment you received from a parent, caregiver or immediate relative as a living allowance or gift.
You may claim a tax credit for any tax paid on your behalf by an interest or dividend payer, your employer or a person that paid you schedular payments
The exemption doesn't apply to this income.
During the 2013 tax year the person you worked for:
You do not have to file a return because of this income alone. However, if you do file a tax return or receive a personal tax summary for another reason you will need to include this income. It is likely that you will have tax to pay as tax will be assessed on these amounts.
For 2014 and future tax years your employer will deduct tax from your earnings so you may not need to file a return or receive a personal tax summary. If you are paid $200 or more of schedular payments then you must file a tax return.