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Income Tax Act 2007

Income - Exempt income

CW 55BB: Minors' income, to limited extent

You could also call this:

“Tax exemption on some income for young people under certain conditions”

If you’re under 15 years old, or under 18 and go to a registered school, or under 19 and still in school after turning 18, this law might apply to you. It’s about some of your income being exempt from tax.

You don’t have to pay tax on some of your income if it’s less than $2,340 in a tax year. But this only applies to certain types of income. It doesn’t include money you get from a job where your employer takes out tax, money you earn from investments, money you get as a beneficiary, or income that’s already exempt or excluded from tax for other reasons.

This law is part of the Income Tax Act 2007. It’s designed to give young people like you a bit of a break when you’re earning small amounts of money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4514504.

Topics:
Money and consumer rights > Taxes
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“Partners in a partnership may have tax-free income from partnership rules”

Part C Income
Exempt income

CW 55BBMinors' income, to limited extent

  1. This section applies for a tax year to a person, other than an absentee, when the person is—

  2. younger than 15:
    1. younger than 18, and attends a registered school as defined in section 10(1) of the Education and Training Act 2020:
      1. younger than 19, and—
        1. was a person to whom paragraph (b) applied during the previous tax year; and
          1. turned 18 on or after 1 January in that previous tax year; and
            1. continues to attend a school of a kind referred to in paragraph (b).

            2. An amount of income derived by the person in the tax year is exempt income if—

            3. the income is none of—
              1. a PAYE income payment from which the person's employer is required to withhold tax under the PAYE rules:
                1. resident passive income:
                  1. non-resident passive income:
                    1. beneficiary income:
                      1. excluded income:
                        1. exempt income under another provision; and
                        2. the person derives in the tax year a total amount of income meeting the requirements of paragraph (a) that is less than $2,340.

                          Notes
                          • Section CW 55BB: inserted, on (applying for the 2012–13 and later tax years), by section 4(1) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
                          • Section CW 55BB(1)(b): replaced, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                          • Section CW 55BB(2)(a)(i): replaced (with effect on 29 May 2012 and applying for the 2012–13 and later tax years), on , by section 17(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                          • Section CW 55BB(2)(a)(iiib): inserted (with effect on 29 May 2012), on , by section 20(1) (and see section 20(3) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                          • Section CW 55BB list of defined terms beneficiary income: inserted (with effect on 29 May 2012), on , by section 20(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                          • Section CW 55BB list of defined terms employer: inserted (with effect on 29 May 2012), on , by section 17(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                          • Section CW 55BB list of defined terms PAYE rules: inserted (with effect on 29 May 2012), on , by section 17(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
                          • Section CW 55BB list of defined terms tax: inserted (with effect on 29 May 2012), on , by section 17(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).