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.
All information is correct at the date of article
publication. Please note we provide the information as a service only. Accordingly, the contents are
not intended as a substitute for specific professional advice and should not be relied upon for that
Back | Print this page