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 Active Member

    Joined:
    1st Jul, 2015
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    Location:
    Brisbane
    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

    eg
    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. Mike A

    Mike A Well-Known Member

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    if the child was 18 on 30 June 2015 they would be taxed at normal marginal tax rates.