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Do I have to include my child’s income on my tax return in Australia?

In Australia, you generally do not need to include your child's income on your tax return. Each individual, including children, is responsible for lodging their own tax return if they have taxable income.

Taxation of Children's Income in Australia

1. Children's Income: If your child has income from a job, investments, or other sources exceeding the tax-free threshold ($18,200 per year as of 1 July 2022), they are required to lodge their own tax return.

2. Parental Responsibilities: As a parent, you are responsible for ensuring your child's tax obligations are met, but their income is not combined with yours on your tax return.

3. Exceptions: There are specific circumstances, such as interest income above a certain threshold from money given by a parent, where special tax rules may apply. These are less common and typically relate to specific financial arrangements.

If your child needs to lodge a tax return, they can do so online through the Australian Taxation Office (ATO) website or seek assistance from a registered tax agent if necessary. It's important to ensure they comply with tax obligations to avoid penalties and maintain good financial practices.

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Law Firm's Insights
8 February 2022
SYDNEY
Mills Oakley
HARPER
Highlights
1. These proceedings relate to parenting of the children, who were born in 2007 and 2012. 2. The father was born in City MM, Country F, and is aged 46. He is presently employed as a professional at G Company. The mother was born in City QQ, Country F, and is presently aged 42. She works in allied health. 3. When the trial commenced, the father sought an order for sole parental responsibility and for permission to relocate with the children to the UK. 4. The mother has denied the father's allegations of abuse, neglect, or financial problems during their marriage, and has argued that he has been unwilling to engage in parenting responsibilities or reduce his alcohol consumption. 5. From March 2018 onwards, the father states the parties had frequent arguments during which he encouraged her to undertake more parenting responsibilities, reduce her drinking, and find a job. 6. In July 2019, the mother had attended upon Dr T for a psychiatric assessment, and was informed that she did not have borderline personality disorder despite the father's continuous assertions to the contrary. 7. On 29 June 2019, the father returned to Australia and discontinued proceedings against his previous employer.
Judgment
Beginning with the text in bold, the beginning of the text states that the father has sole parental responsibility for Y (born 2007) and X (born 2012). The letter goes on to state that the father shall: -provide the mother with, and keep her advised of, the names and addresses of the children's treating doctors; -inform the mother in writing as soon as practical of any specialist medical appointments including appointments with any dentist, optometrist, psychologist, psychiatrist, counsellor or therapist (specialist medical consultant) in relation to either of the children; and -ensure that the mother is provided with a copy of any report by any such specialist medical consultant in relation to the children, within 14 days of the father's receipt of the report. The text then goes on to state that unless otherwise agreed between the parties in writing, the parties are at liberty to depart the jurisdiction of Australia for the purpose of holidaying with the children if: -the travel occurs during their time with children during school holidays; -the travel takes place in accordance with all health guidelines and directives of federal or state governments relating to Covid-19 virus or any other health risk; -the children remain in the care of the travelling parent for the duration of the holiday; -the travelling parent provides the non-travelling parent: -three (3) months' notice of the intended travel; -evidence of paid return airfares/tickets for the children and for themselves; -evidence of travel insurance for themselves and for the children for a period; and -an itinerary for travel, including addresses where they will be staying, is provided. If either party fails to comply with an order given by a court then that party must do all things necessary to list E Town Property for sale. The mother must nominate three agents who will act on her behalf, and one will be chosen by father. If father fails to comply with orders given by court he must pay $182 thousand into law practice trust account set up by mother before he can have any contact with children
Legislation
1.Evidence Act 1995 (Cth) s 144
2.Family Law Act 1975 (Cth) Pt VIII, ss 10G, 60CA, 60CC, 61DA, 62B, 65DA, 65DAA(1), 65DAB, 75, 79, 80, 81, 90XT(1)(a), 106A, 117, 117B
3.Family Law (Superannuation) Regulations 2001 (Cth) Pt 6
4.1980 Hague Convention on the Civil Aspects of International Child Abduction
Other FAQs You may Interested In
1. Do I need to pay taxes if I transfer money from abroad to Australia?2. Do international students need to file taxes in Australia?3. Do foreigners pay tax in Australia?4. In Sydney, Australia. The other parent has taken the children and is refusing to return them. What should I do?5. What is not counted as income in Australia?