According to the interpretation of Children’s exempt income from IR3G, if for the tax year you 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.
If you receive income that has not had tax taken out before you receive it eg. worked around the home of a neighbour or family friend, and that work was not part of a business that they carry on, and your total income from these sources is less than $2,340 for the tax year, this income is exempt from tax and is not included in your return. You are not required to file a return just because you earn this type of income. If you earn $2,340 or more, the exemption does not apply and you will need to file a return and pay tax on all the income, not just the amount that exceeds the exemption.
At the same time, if there is a family business, the expenditure of $2,340/person (children’s wages) can be used as a deduction for business income. However, if this part of the annual income exceeds $2,340, you need to file all income and pay taxes.
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