Child Rebate - 2012 Tax Year 

 
Grange Associates Ltd - 18 April 2012

The child rebate provides that children are not required to pay tax on salary and wages if it is less than $2,340 per annum ($45 per week).

For the 2012 tax year, the rebate is calculated as the lesser of $245.70 or 10.5% of annual income.

Children are eligible for this rebate in any tax year:
- they were 14 or under, or
- were 15, 16 or 17 and still attending school, or
- turned 18 on or after 1 January in the previous tax year and
   continued to attend school (excluding tertiary institutions)

There are two options for claiming the rebate:

No PAYE Deductions

If a child’s salary or wages do not exceed $45 per week, employers are not required to make PAYE deductions from the weekly earnings, and the child is not required to complete a tax code declaration form or file an annual tax return.  This also applies if weekly earnings exceed $45 per week, but annual earnings are not expected to exceed $2,340.

Filing Personal Tax Summary or IR3

If PAYE deductions have been made, the child rebate can still be received by way of requesting a Personal Tax Summary from the IRD or filing an IR3 income tax return with the IRD at the end of the income tax year.

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