02/12/2025
How to Declare Minor Children’s Income
This depends on who the ATO considers the true owner of the income.
If you (the parent or guardian) provide the funds, control how they’re used, and spend the earnings, the ATO generally treats the income as yours and it must be declared on your tax return.
Your child may need their own tax return if:
the income is genuinely theirs and tax has been withheld (e.g., bank interest or dividends without a TFN),
you want to claim a refund for withheld tax,
they own shares and their dividend income (plus any other declarable income) is more than $416,
or if their non-excepted income exceeds $416.
Even if income is $416 or less, a return can still be lodged to claim withheld tax or franking credits.
Understanding where the money originally comes from is crucial.
Helping your child manage their early finances — and handling tax correctly — sets them up for a strong financial future.
Read more in our latest blog — click the link below.
https://news.jimsbookkeeping.com.au/.../how-to-declare.../
