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  1. #1
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    Default Kids bank accounts??

    It's been mentioned on here and have been told by a few people that you can have an account for your child that isn't linked to or considered your own for taxation and centrelink purposes.
    Is this really so? What banks offer such an account?

    I've got my kids a catalogue run so they can earn their own pocket money but from my understanding it will be considered my income as it will be paid into an account that i am linked to.

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    I'm interested in finding out more about this also...

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    Hmm I not sure to be honest. My kids have their own acc's. When my dd started working i was told her money didn't affect my payments until she turned 16. The system has since changed so i would check with centrelink.

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    We have an account set up for each of our girls, but it is in no way linked with our personal accounts.
    I don't know exactly how it works with tax etc, but I do know there are limits as to how much we can put in in a month/year all up which I suspect has something to do with the whole tax side of things.

    It's a children's account through BankWest.

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    I'm not 100% sure, but DS1 has an account with Bank West...the Kids Bonus Saver account. It's not associated with mine in any way, except that I transfer money in fortnightly from my account.
    I don't know if that's the same thing, though.

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    yep you certainly can, not sure what bank account it is called but investment wise you can set up an account in the name of a minor called a trust and act as the trustee to this account. There are still capitol gains to be considered for the minors,but it is not considered your money per say - you are simply the trustee.

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    oh and I think the parents/trustees pay the tax on the interest earnt but not 100% sure.

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    yep you certainly can, not sure what bank account it is called but investment wise you can set up an account in the name of a minor called a trust and act as the trustee to this account. There are still capitol gains to be considered for the minors,but it is not considered your money per say - you are simply the trustee.
    This is the setup i have now but for centrelink purposes the money is still considered mine. I'm pretty sure the interest earnt on the accounts was passed on to the ATO as well and considered mine.

    I want an acount that is just the kids because it's genuinely going to be just their money.

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    really? I am not sure of all the details, but I work for a financial adviser and we have quite a few clients who have investements for their kids and isn't considered an income or asset with c.link.

    They are not with bank though, they are investments with like MLC, colonial first state etc. There named like this "Parent A and Parent B ATF <Child A and Child B Investment Fund/Trust Fund>". The children do not have TFN.

    I will ask the boss tomorrow technically what struture is it and let you know if you like. Then you could make enquiries about setting one up maybe?

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    really? I am not sure of all the details, but I work for a financial adviser and we have quite a few clients who have investements for their kids and isn't considered an income or asset with c.link.

    They are not with bank though, they are investments with like MLC, colonial first state etc. There named like this "Parent A and Parent B ATF <Child A and Child B Investment Fund/Trust Fund>". The children do not have TFN.

    I will ask the boss tomorrow technically what struture is it and let you know if you like. Then you could make enquiries about setting one up maybe?
    That would be great if you could ask. Thanks heaps

    I bank with a credit union. I just had a look at a statement. It states that i'm the account owner and am trustee for the kids.


 

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