Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
57even(Newbie)Newbie
9 Oct 2023

Hi. My daughter is under 16 years old and has a high interest savings account in her own name. She does not work or have any other source of income other than gifts from family members. This year, my daughter is on track to earn more than $420 in interest. If the bank apply the TFN exemption code for children under 16, will that prevent any withholding tax being taken out, or even with the TFN exemption code will the bank be required to deduct withholding tax from her interest earnings once she earns over the $420 threshold?

1,828 views
1 replies
1,828 views
1 replies

Most helpful response

Most helpful reply

TeddyATO(Community Support)Community Support
10 Oct 2023

Hello @57even,


Normally you will discuss this with the bank in question. If you are going to use an exemption reason for not withholding then they will have forms you will need to fill out. This should be done sooner rather than later to make sure that everything is in place for the end of tax year information transfer the banks do. Many banks if not prompted just withhold as it will be corrected in tax returns.

All replies

Most helpful reply

TeddyATO(Community Support)Community Support
10 Oct 2023

Hello @57even,


Normally you will discuss this with the bank in question. If you are going to use an exemption reason for not withholding then they will have forms you will need to fill out. This should be done sooner rather than later to make sure that everything is in place for the end of tax year information transfer the banks do. Many banks if not prompted just withhold as it will be corrected in tax returns.

Liked by 57even

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3114 likes

  2. Taxduck

    (Taxicorn)

    2132 likes

  3. PayrollDeanne

    (Taxicorn)

    862 likes

  4. YellowPotato

    (Taxicorn)

    559 likes

  5. knaresbro

    (Devotee)

    374 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    9671contributions

  2. Taxduck

    (Taxicorn)

    4848contributions

  3. PayrollDeanne

    (Taxicorn)

    2075contributions

  4. YellowPotato

    (Taxicorn)

    1404contributions

  5. YEP

    (Devotee)

    836contributions

Loading
Child TFN exemption code | ATO Community