Childrens Tax rates for income received on May 30?

Discussion in 'Accounting & Tax' started by redsquash2, 5th Oct, 2015.

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  1. redsquash2

    redsquash2 Member

    1st Jul, 2015
    If a minor turns 18 in the financial year how is the calculation performed when a trust gives money to the person.
    eg 18,000 dollars is given to person 1 day after their 18th birthday of may 30.

    If this is the only income ,
    Is the tax nil or is there a pro rata calculation for the year, at children's rates.

    My reading from the ATO website would result in zero tax paid if this was the only income,but I am not completely sure even though it seems straight forward

    Resident tax rates for minors on eligible income 2014-15
    Eligible income
    Resident tax rate
    $0 to $416 Nil
    $417 to $1,307 66% of excess over $416 (1)
    Over $1,307 47% of the entire amount of eligible income

    Thanks in advance
  2. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent Business Member

    24th Jun, 2015
    Melbourne VIC
    if the child was 18 on 30 June 2015 they would be taxed at normal marginal tax rates.