I understand the law around minor's income - taxed at 66% over $416pa unless excepted income or excepted person, in which case normal adult rates on that income. However I cannot find in MyTax where to record how much of the income is excepted income (ie is subject to adult (ie lower) rates). This is question A1 on the paper tax return and is mandatory on the paper return if under 18. If left blank on paper return all income is taxed at the higher rate (or so the paper return says). Bizarrely, in My Tax there is no A1 equivalent, rather it just defaults to "all of your income will be taxed at normal rates" which it now seems means not the normal minor rate (ie higher rate) but rather the lower adult rate - despite MyTax knowing the child's age, and knowing that the only income is very likely not "excepted" income (bank interest and managed funds). This appears to have been a problem since the introduction of MyTax, with the exception of 17-18 year. 21/22 is the first year where this makes any practical difference for my kids, and I am trying to amend their returns as they have received a refund when they should have had a liability. The portion of MyTax where it reads "all income will be taxed at normal [sic] rates" does not allow for amendment.
Where in MyTax is the entry for the equivalent of A1 on the paper return? Am I not seeing it because I have not selected a particular option at step 3 of the MyTax return? I have doublechecked step 3 and all of the relevant boxes are checked correctly. I would much rather amend online than have to send in a snailmail.
I also note that this probably means that many minors with unearned income have probably been paying too little tax ever since MyTax in 2016 - due to poor MyTax programming - but as that is not my kids' case (other than 21/22, which I'm fixing), that's ATO's problem to address.
1,318 views
5 replies