My Daughter is 16 and currently is earning under $20K so we lodged with the employer that she is under 16yo and earning under $20K yet they are taxing her @ 41% Why do I need a TFN if she comes under these clauses in her tax?
Your income if you are under 18 years old | Australian Taxation Office (ato.gov.au)
They will require a TFN.
Under 18s get a smaller tax free threshold, this is to stop parents from avoiding tax by hiding Invesment income in their childs name.
If the minor is earning excepted income, then these payments should be taxed the same as an adult.
If you dont provide a TFN, employers are required to withhold at 41%
any excess tax withheld will be refunded when they lodge their Income tax return.
Your income if you are under 18 years old | Australian Taxation Office (ato.gov.au)
They will require a TFN.
Under 18s get a smaller tax free threshold, this is to stop parents from avoiding tax by hiding Invesment income in their childs name.
If the minor is earning excepted income, then these payments should be taxed the same as an adult.
If you dont provide a TFN, employers are required to withhold at 41%
any excess tax withheld will be refunded when they lodge their Income tax return.
Thanks for the reply, so the ATO has given me the incorrect information? I was told it would be lodged as a "[Removed by moderator]" meaning she is claiming that she will not be taxed as she is 16 and earning under $20K? Im so confused. She has been there over a year and they have just only recently started taking tax out of her pay.
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