5 min read
Teaching teens about tax (without making them hate it)
A simple, AU-specific way to explain gross vs net, the tax-free threshold, TFNs, and what comes out of a first payslip.
Tax is the most expensive thing your teenager will ever pay, and the one school is least likely to explain. A 15-minute conversation now is worth more than any finance class.
Start with one sentence
Gross is what you earn. Net is what lands in your account. The difference is mostly tax, and a bit of super if you earn over the threshold.
That is genuinely it. The rest is detail.
The tax-free threshold (the friendly bit)
In Australia, the first $18,200 you earn in a financial year is tax-free. Most casual teen jobs sit below this, which means the tax withheld on each payslip is usually refunded after they lodge a return.
Show them this on their actual payslip. It is the difference between 'tax is theft' and 'tax has rules I can plan around'.
Three numbers to know on every payslip
Gross pay, tax withheld, and super. PocketGrow's Family Tax screen mirrors this with play money so younger kids see the shape before they ever earn a real wage.
Walk through a play payslip with your teen tonight
Open the Family Tax screen, set a chore rate, and the numbers do the explaining.