Interest and Childrens Bank accounts

(last updated 22/04/2014)

Related Posts:

Interest earned on a child's savings account may in some circumstances be treated as income of the parent rather than the child. ATO guidelines are as follows:

"whose money is it?":
  • If the money in the account really belongs to the parent, interest is included in the parents' tax return.
  • If the money in the account is made up of money the child has received as birthday or Christmas gifts, pocket money or from odd jobs, than the money in the account will be treated as if it belongs to the child.
Note that a child can earn up to $1750 tax free. All passive income over that amount is taxed at the highest marginal rate. Wages and other "earned" income is taxed at normal rates.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:
For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

Copyright 2014. My Tax Zone.