Superannuation co-contribution scheme for low income earners (under about $56k/year) is paid automatically into your super account as long as the super account has your tax file number. Deposit $1000 into your super account and the government will top it up with $500 or a total of $1,500. $1,500 deposited per year at 7% per annum over 10 years will compound to $23,000 at the end of year 10 on total contributions of $10,000.
For the ATO children working need to be excepted persons or have excepted income to be taxed at normal tax rates. Excepted persons or people with excepted income, pay tax at the same rate as an Adult ie the normal tax rate – otherwise, there are effectively penalty tax rates for kids ‘working’ which is in fact parents distributing income.
When can kids start working in Victoria:
- There is a minimum age of 11 years for children delivering newspapers and advertising material, or making deliveries for a registered pharmacist.
- In other types of work, there is a minimum age of 13 years for employment in industries other than entertainment.
- There is no minimum age for children working in a family business.
- Despite popular opinion, 14 years and 9 months is not the minimum age of employment – to be employed without a permit, a child must be 15 years.