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Investing is one of the most powerful ways to give a child a financial head start.
Whether you’re putting aside a gift for a newborn or teaching your teenager how the share market works, this guide will help you navigate the options, tax rules and best practices involved in investing for kids in Australia and building long-term wealth for the next generation.
Children have one of the greatest financial advantages on their side: time. By starting to invest for them early, you can harness the power of compounding returns and teach them valuable money lessons along the way. Investing for kids isn’t just about future financial security, it’s also a chance to build financial literacy, discipline and a sense of ownership from a young age.
There’s no one-size-fits-all approach to investing for kids. Each of the following options has its own mix of costs, tax rules and how much control you keep – so it’s worth understanding what suits your family’s goals.
Once you’ve set up an account for your child, you’ll choose what to invest in. This can be as simple or as involved as you like.
A kid’s investment portfolio doesn’t need to be complex. One approach is to use a simple mix of investments that grow steadily over time – and can evolve as your child gets older. You might:
As a general guide, investment risk can fall into one of two buckets:
Your asset allocation will likely shift as your children get older and their priorities change.
With a Betashares Direct Kids Account, you can build a portfolio using:
Whether you’re investing a few dollars a month or gifting a one-off sum, it’s the long-term mindset – not the dollar amount – that makes the difference.
When investing for kids, the single most powerful force on your side is time.
Time unlocks the potential of compounding: earning returns on your returns. Even small, regular investments can grow substantially over time.
As a hypothetical example, imagine investing $5,000 at birth and achieving a 9% average annual return. By age 18, that one-off investment could grow to over $23,500 – without you adding another cent.
Or alternatively, consider what happens if you invest $100 a month from birth to age 18. With an average 9% annual return, could grow to over $53,600 – 40% more than your total contribution over that same time.
Consistency is key to long-term investing, and one of the easiest ways to stay consistent is through dollar-cost averaging (DCA) – investing a fixed amount at regular intervals, regardless of market conditions.
DCA strategies can help smooth out volatility and remove the pressure of trying to time the market. And as we saw in the previous examples, it can leave you better off than just investing a lump sum.
Even small, consistent contributions over time can significantly boost your child’s financial future.
To make regular investing easier, Betashares Direct offers Auto-invest. You can set up automatic contributions into up to five Betashares ETFs for your child, making it easy to build discipline into your investing routine.
Refer to the PDS for information on interest retained by Betashares on cash balances and Portfolio fees.
You can also use our Kids Account calculator to see how your regular contributions could grow over time.
Keeping fees low is especially important when investing for kids, since small differences compound over time.
Management costs (MERs) are charged as a percentage of your investment but finding ways to minimise them is key. Even a 1% difference in annual fees can lead to significantly different outcomes over decades.
Let’s assume the following:
Investor A pays 1% more in fees than Investor B. After 40 years:
Another cost to take into consideration is brokerage. For every investment that you make, you could incur brokerage fees depending on the investment platform.
However, with Betashares Direct, you can invest for your child brokerage-free with as little as $10 in all ETFs and 350+ shares traded on the ASX. In addition, if you place a dollar-based market order, you can invest the exact amount you want with no rounding or wastage.
This allows your money to work for your child straight away and reap the benefits of compounding for the full amount you have available to invest, rather than waiting to purchase whole units.
The less you pay in fees, the more of your child’s money stays invested and growing. This is why choosing a low-fee platform matters when investing for kids.
Minors can’t legally own investments outright, so parents or guardians typically invest on their behalf. This has tax implications, especially around beneficial ownership. Betashares is not a tax adviser. This information should not be construed or relied on as tax advice and investors should obtain professional, independent tax advice before making an investment decision.
If the investment is for the child’s benefit, then the child is the beneficial owner. If so, investment income should be declared in their name.
If their income exceeds $416 a year, special tax rules for minors apply. Under these rules, income between $417 and $1,307 attracts a tax rate of 66%, and any income above $1,307 is taxed at a rate of 45% (i.e. no Medicare levy applied). However, income under $416 is not subject to income tax. There is no requirement to lodge a tax return for children with income below this threshold, but parents may still choose to do so to claim back any tax withheld on investment income or franking credits.
A common concern when investing for kids is how to handle the handover when they reach adulthood.
If the child has always been the beneficial owner, investments can often be transferred into their name at 18 or older without triggering CGT. Keeping good records helps support this, including:
The best way to do this is to set up a separate bank account in the child’s name (with the parent as trustee) for receiving gifts, dividends or income. This helps clearly demonstrate beneficial ownership.
Teaching kids about investing is about more than returns. It can build confidence, independence and financial literacy that lasts a lifetime.
Make money lessons meaningful – and fun.
One way to grow a child’s investment account is through gifting. Grandparents, godparents, aunts and uncles often want to give meaningful contributions, and investing offers a lasting alternative to toys or cash.
These can be one-off gifts or regular transfers. Be sure to document the source of the funds and confirm that they’re intended for the child.
If large amounts are gifted - for example, $100,000 or more - and the resulting investment income is significant, it could be taxed at high rates under the special tax rules for minors. In these cases, it’s worth speaking to a tax adviser about the best structure for managing the investment and minimising tax.
Investing for your child is more than a financial decision. It’s a long-term gift that teaches resilience, planning and the power of small actions over time.
With the right structure, strategy and support, you can help set your children up for a future of financial confidence – and give them the resources to shape their own future.
Open a Betashares Direct Kids Account today and set them up for life.
Betashares Capital Limited (ABN 78 139 566 868, AFSL 341181) is the issuer of Betashares Invest, being the IDPS-like scheme available through the Betashares Direct platform. Before opening an account or making an investment decision, read the Product Disclosure Statement and the Target Market Determination for Betashares Invest, available at www.betashares.com.au/direct or by contacting Customer Support by email at [email protected]or by phone on 1300 487 577, to consider whether the product is right for you. Betashares is not a tax adviser. This information should not be construed or relied on as tax advice and investors should obtain professional, independent tax advice before making an investment decision.
Investing is one of the most powerful money lessons you can pass on to your child, and the earlier it starts, the better.
While many kids are taught to save, few learn how to make their money grow. Investing often feels too complex or too adult – something they’ll 'figure out later'. But by then, the chance to build good habits early, or benefit from compounding, may have already passed.
This guide offers practical ways to make investing part of everyday life. Not as a lesson, but as something your child can grow into with confidence.
Children form their core money habits as early as age seven1, according to researchers from the University of Cambridge.
At that age, many already understand concepts like saving, planning and making trade-offs, based on what they see and hear at home. They’re noticing how you talk about money, how you spend it and when you say things like “We can’t afford that.” But most children don’t learn how to make their own money grow until much later, often after it could have made a real difference.
Teaching kids about investing early helps them:
A familiarity with investing is one of the most valuable skills you can pass on – and the earlier it starts, the more natural it becomes.
By age seven, most children have already formed key money habits, including how they think about saving, spending and planning for the future.
At this stage, it’s less about dollars and cents and more about building the right mindset. Focus on simple, hands-on experiences that make growth, patience and trade-offs feel fun and meaningful.
Try this:
As children grow, investing becomes a way to express their identity and gain independence. This is a great time to connect investing to their goals and values.
As they begin to earn their own money or plan for life after school, teenagers are more ready to understand goals, trade-offs and even risk. They may be forming strong opinions, so investing can become a powerful way to connect with what matters to them, whether that’s saving for a car, supporting sustainable companies or building independence.
Try this:
Your children are already learning from you how you handle money. The way you plan, talk about goals, weigh decisions; they’re taking it all in. When it comes to investing, you don’t need a perfect script. You just need to bring them into the picture.
That might mean having a chat over dinner about which company they think will grow in the next decade. Turning part of a birthday gift into an investment and checking in on it together over time. Or investing alongside them when they reach a savings milestone.
These small, real-life moments help investing feel familiar – not abstract or intimidating. Over time, it can become part of how they see the world, and how they shape their own future.
Looking for simple ways to bring investing to life? These tools can help you get started and stay on track.
You don’t need to be an expert. Just showing up and having the conversation is what matters most.
Explore the Betashares Kids Account or use the calculator to begin your child’s investing journey.
Investing for your child is more than a nice idea – it could be one of the most important financial decisions you make. A small amount invested early could have decades to grow, to help pay for education, a first car or even a house deposit one day.
However, children under 18 can’t own shares or ETFs in their own name. This means their investment account needs to be set up differently. Here’s how a Betashares Direct Kids Account works, from trust structures and tax rules to what happens when the child turns 18.
Importantly, this article should not be construed or relied on as tax advice and investors should obtain professional, independent tax advice before making an investment decision.
When you open a Kids Account on Betashares Direct, you're setting up what’s commonly referred to as an informal trust. That means you (the adult) are the trustee while your child is the beneficiary.
That last part is important: you don’t have to transfer the investments when your child turns 18. The decision – and the timing – is up to you.
Tax matters – especially when investing for someone under 18.
Because the investments in a Kids Account are held in your name as the trustee under the informal trust structure, you should consider providing your Tax File Number (TFN) when setting up the account. If you don’t, the ATO requires that a 47% withholding tax be applied to the investment income.
Other than the withholding tax matter, you might consider setting up a TFN for your child as there is no minimum age to do so, if you're planning to declare the investment income in their name (see below).
It’s important to consider who owns and uses the funds in relation to a Kids Account to determine who is liable for income tax:
Just keep in mind that if you declare investment income in your child’s name, they’ll be taxed under special rules for minors. The tax-free threshold is lower than it is for adults, and higher tax rates can apply once investment income adds up. But if you’re investing small amounts or focusing on long-term capital growth rather than income, the impact can be minimal.
First things first, there’s no automatic transfer when your child becomes an adult. You can choose to hand over control whenever the time feels right.
To do that, your child will need to open their own individual account on Betashares Direct. Then, you can arrange an ‘in-specie transfer’ – meaning the investments are moved over to the account held in the child’s individual name without having to be sold.
This can happen without triggering capital gains tax (CGT), as long as the trust arrangement for your child is preserved. There are a few conditions to consider (noting this is not an exhaustive list):
If the applicable requirements are met, the transfer should be CGT-free. If not, the ATO may treat it as a ‘disposal’ of assets, and CGT could apply. We suggest you speak to your tax adviser about your personal circumstances to determine if CGT will apply to such a transfer.
For many families, a kid’s investing account – structured as an ‘informal trust’ – can be a simple way to invest on behalf of a child.
But in some cases, families may consider setting up a ‘formal trust’ (usually set up as a family or discretionary trust). These require formal trust documentation to set up, come with more administration and are usually used as part of broader estate planning or family wealth structures.
The following table offers a comparison of the two formats.
Unless you already have a formal trust in place, need tax flexibility across multiple beneficiaries or have other specific requirements, a Kids Account that is an ‘informal trust’ can often be a more simple and straightforward option.
A Kids Account on Betashares Direct can be a simple, low-cost way to invest for your child. It provides a structure that can help to ease the administration burden (including when it comes to tax), as well as control over when to transfer assets to the child after they turn 18, so the account works for you today and for them in the years ahead.
Open an account in minutes, with low fees and a range of investment options designed for long-term growth.
Learn more and open a Kids Account on Betashares Direct.
As the cost of independence rises, early investing gives your child a meaningful head start, and you a quiet sense of progress.
When you imagine your child at 18, 25 or 30, what do you see?
Maybe it’s them moving into their own place, studying something they love or simply having the freedom to choose their next step with confidence.
But flexibility takes planning, and many of the milestones once associated with adulthood now come with a significant financial hurdle.
A high HECS debt is no longer uncommon, median weekly rents recently topped $650 a week1 and house prices in Australia’s largest cities have almost doubled2 in the past 10 years. That may be why, according to Mozo, more than 60% of first-home buyers in Australia now receive some form of financial help from their parents, with the average gift in 2025 over $74,0003.
One way to shift that dynamic is by investing early. Whether or not you plan to help your child with a house deposit, having an investment fund for them can be a way to quietly build a future buffer, giving your child a gift when they need it most.
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The case for starting early
You don’t need a finance degree or a large income to invest for your child. What you need is time – and consistency.
That’s because of compounding: the snowball effect where your investment earns returns, and then those returns earn returns of their own. It’s one of the most powerful forces in long-term investing, and the earlier you begin, the more powerful it becomes.
To really understand the benefits of investing early, it helps to look at how small, consistent contributions can grow over time. Here’s what that could look like, assuming an annual return of 8.65% (the 10-year annualised return of the S&P/ASX 200)4:
These are modest investment amounts but, when given time to grow, can open up real opportunities, while reducing the future financial pressure on both you and your child.
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More than a deposit: the gift of opportunity
For some young Australians, the first big expense won’t be a mortgage – it might be life itself.
A full-time degree without time to work. A gap year spent volunteering. An internship that opens the right doors. Or simply a chance to move out and start fresh.
These experiences can shape who your child becomes, but they often come with a cost.
Early investing can help fund these moments (or at least reduce the financial strain). A financial head start might allow your child to say yes to the things that matter, without relying on credit cards or loans – one of the most practical benefits of investing early.
Building a mindset, not just a balance
Perhaps most importantly, investing for your child can help them understand how to build and maintain their own wealth over their lifetime.
When you invest on behalf of your child, you’re not just building their portfolio. You’re shaping how they think about money, how to plan ahead and the importance of consistency. Both you and your child may even learn how to ride out market uncertainty – especially if your money will be invested for a long time.
These are habits that extend well beyond finances.
It’s well documented that a child who grows up financially literate is more likely to have healthy financial behaviours later in life and to see money as a tool for freedom, not stress. That mindset is often fostered by parents who involve their children in the money decisions of the household and, when done well, can last longer than the money itself.
The quiet benefits of investing early
There are many benefits of investing early, financial and beyond. Many people assume investing for kids is only for the wealthy or financially savvy. In reality, it’s never been easier to start small and start early.
With a Betashares Direct Kids Account, you can begin with as little as $10 or as much as you like. Choose from a range of diversified ETFs or Betashares Managed Portfolios, set up automatic contributions and let compounding do the rest.
As the cost of independence continues to rise, early investing can offer something subtle but significant: a financial head start that grows quietly in the background. It won’t solve every challenge your child will face – but it can ease a few of them, and widen the path ahead.
Sometimes, that’s all it takes to make a meaningful difference.
Sources:
2 Michael Yardney’s Property Update
3 Australian Property Investor Magazine
4 10-year annualised return of the S&P/ASX 200
Investing on behalf of a child can be a powerful way to build long-term wealth for your child’s future. However, doing so effectively – and with proper regard to Australian tax law – requires a clear understanding of ownership structures, reporting obligations and ATO expectations.
In Australia, many investments for children are held in the name of a parent or guardian, but for the child’s benefit. These arrangements are often referred to as informal trusts. While simple to set up, they come with specific tax implications that are often misunderstood, especially when it comes to ownership, income and capital gains tax.
This guide explains how informal trusts work, what the ATO looks for and how to manage tax and compliance with confidence as your child’s investments grow.
Please note this information is general in nature only and should not be relied on as tax advice. Investors should consider obtaining professional tax advice before making an investment decision.
Before diving into how tax works for children’s investments, it’s important to understand how CGT applies to investors in Australia. CGT is the tax you pay when you sell an investment, like shares or ETFs, for more than you paid (e.g. the cost at which you acquired the investment). The difference between the purchase price (called the ‘cost base’) and the sale price is the capital gain. Your cost base is typically your purchase price adjusted by things such as any returns of capital since you have held the shares or ETFs.
If you hold the investment for less than 12 months, the full capital gain is added to your taxable income. But if you’ve held the investment for more than 12 months, you may be eligible for a 50% CGT discount. This means you only pay tax on half the gain.
For example, say you bought $5,000 worth of units in an ETF and sold it five years later for $9,000. That’s a capital gain of $4,000. Because you held the investment for more than 12 months, you only need to pay tax on $2,000 of that gain. If your marginal tax rate is 32%, your CGT bill on the sale of the investment would be $640 - or 32% of $2,000.
Understanding how CGT works can help you make better long-term decisions, including how and when to transfer investments to your child.
An informal trust is a simple way for parents to invest on behalf of their child without setting up a formal legal structure. The investments are held in the parent’s name, but the child is the ‘beneficial’ owner, meaning they’re entitled to the earnings and value.
It’s a common approach for families wanting to build wealth for a child without the complexity of having to establish and administer a formal trust.
One of the biggest potential benefits of a trust arrangement is how CGT is handled when you want to transfer the funds to the child at any point after they turn 18.
As long as your child has always been the beneficial owner, you can generally transfer the investments into their name (through an ‘in-specie’ transfer) without triggering a CGT event. In other words, no tax is payable at the time of transfer, either by you or by your child.
Instead, your child takes on the original cost base and acquisition date for the investment - the amount you paid when you bought the investment. This means no CGT is triggered at the time of transfer from the trust to the child’s individual account (after they turn 18 years of age). If your child sells the investment in the future for more than the purchase price, CGT will be payable on the gain.
With an informal trust, the investment account is held in the parent’s name.
But if the investments are held for the child’s benefit, the child is the beneficial owner, i.e. the one who earns the income and ‘owns’ any capital growth.
For tax purposes, the ATO cares most about beneficial ownership. That’s what determines who should pay tax on income and whether the investment can be transferred tax-free after the child turns 18.
One of the most important requirements for this to occur is to be able to show that your child has been the beneficial owner since the acquisition of the relevant investment(s). The ATO considers several factors when assessing this, including where the funds to acquire the investment came from, who made investment decisions, and where any income earned from the investment was paid to (and by or for whom it was spent).
They also look at the intent and documentation around any gift or trust arrangement. For substantial amounts or more active trading, the ATO could apply additional scrutiny.
The source of the money used to invest plays a big role in deciding who the ATO sees as the beneficial owner of the relevant investment:
When setting up an investment account for your child, you’ll need to quote your Tax File Number (TFN). This tells the ATO who the legal owner of the investment is and helps avoid unnecessary withholding tax. However, depending on the source of funds, there are different rules on who will be taxed on the income.
It’s more straightforward than it sounds. Here’s how to choose the correct TFN based on who beneficially owns the investment.
If the investment is genuinely for your child’s benefit, and the money came from them or was clearly gifted to them, you should consider including the income received from the investment on your child’s tax return.
To lodge a tax return, you need to obtain a TFN for your child. There is no minimum age to get a TFN. Parents or guardians can apply on behalf of a child, including babies, by completing a paper form through the ATO.
If the funds you’re investing haven’t been formally gifted to your child, they’re still considered yours for tax purposes. This means the income should be declared under your TFN, even if (for example) the account is set up to help teach your child about investing.
This may apply if you plan to:
In either case, transferring the assets or cash to your child may trigger a CGT liability for you at the time of transfer.
If a TFN is not provided, the ATO requires that 47% tax be withheld from income derived from the investment.
Tip: If your goal is to invest on your child’s behalf and transfer the investment to them in the future without triggering CGT, it is important to ensure you keep clear records regarding the investment.
If your child earns income from investments, like dividends or capital gains, that income usually needs to be reported to the ATO. The person who benefits from the investment (the beneficial owner) is responsible for declaring it. So, if the investment is held for your child, the income should generally be declared in their name, not yours.
Children under 18 are taxed differently to adults when it comes to investment income. The first $416 they earn from investments each year is tax-free. After that, higher tax rates apply, up to 66% and then 45%, depending on how much they earn. These special rules are designed to prevent the shifting of income into a child’s name to pay less tax.
If your child earns more than $416 in a year from investments, they’ll need to lodge a tax return. Even if they earn less than that, it can still be worth lodging to claim back any tax withheld or franking credits.
It’s worth noting that these tax rates only apply to passive income like investments held on behalf of a child. If your child has a job, that income is taxed at normal rates and is subject to the standard tax-free threshold.
One of the biggest benefits of using an informal trust is what happens after your child turns 18.
As mentioned earlier, if they’ve always been the beneficial owner, you can generally transfer the investments into their name without triggering CGT.
The transfer, also known as an ‘in-specie’ transfer, is completed off-market (for listed or exchange-traded investments) and no tax is payable by you or your child. They also inherit the original cost base, which means any future capital gains (or losses) are based on what you originally paid to acquire the investment, not the value when you transfer the investment to your child.
Keeping good records helps ensure this process runs smoothly.
To establish beneficial ownership and ensure a smooth transfer, maintain thorough documentation, including:
Keeping clear records and separating finances can help ensure your child’s investments get the right tax treatment – and make it easier to provide supporting documentation for any CGT exemptions that may apply later on.
A few small missteps can create tax issues or affect your ability to transfer investments to your child without attracting CGT later on.
Avoiding these simple mistakes helps keep things on track and ensures the correct tax treatment in the long term.
The intent and documentation around gift or trust arrangements are also closely examined. For substantial amounts or regular trading, additional regulatory scrutiny may apply to determine beneficial ownership.
Investing for your child through an informal trust can be a simple and effective way to build long-term wealth, but it does require a clear understanding of tax rules and ATO expectations.
Clearly documenting beneficial ownership, using the correct TFN, reporting income properly and avoiding common pitfalls can help you stay compliant and ensure the correct tax treatment of investments in the long term.
For more complex arrangements or larger investments, it may be worth seeking advice from a qualified and registered tax adviser.
A Betashares Direct Kids account is an account opened and operated by an individual (adult) on behalf of a person under the age of 18. It is structured as an informal trust, which allows the adult (as the trustee) to hold investments on behalf of a child (as the beneficiary).
Any adult (aged 18 years or older) can open a Kids account, such as a parent, grandparent, other relative or family friend.
You do not need an existing Betashares Direct account before opening a Kids account.
Each Betashares Direct Kids Account allows for only one beneficiary. If you would like to invest for multiple children, you will need to open a separate Kids Account for each child.
It is simple to set up additional accounts at the time you create your first Kids Account. As the trustee, you can easily switch between your Kids Accounts once you are logged in.
You'll need to provide the child's name and date of birth, as well as your own details as the trustee.
Please note you will not be able to update these details yourself once you’ve created the account. To make changes, you’ll need to contact our Customer Support team.
As the account holder (being the trustee), you are the owner of the investments held in the account and should provide your TFN to ensure the correct amount of tax is withheld on any investment income.
If no TFN is provided, we’ll need to deduct tax on any income at the highest marginal rate plus the Medicare levy.
Please note this is not tax advice, and we recommend consulting with your tax adviser.
Regardless of whether you, as the account holder (being the trustee of an informal trust), provide your TFN for withholding tax purposes on a Kids account, you will still need to choose to declare the investment income earned via the account to the ATO under your tax return or the child’s tax return.
For the child to retain ownership of the investments held in your Kids account, you may consider declaring it under the child’s TFN. Alternatively, you may choose to declare investment income in your name. If you decide to do this, the child may not be considered the beneficial owner of the investments.
Coming soon:
To help make tax time easier, we will be releasing a tax management tool before the end of the financial year that gives you the choice to provide the child’s TFN so that the investment income can be declared under the child’s name. This will automatically pre-fill the information in your child’s tax returns each financial year.
Australian residents can apply for a TFN at any age for free.
If the child is 15 years or older and has an Australian passport, they can apply for a TFN online. If the child is under 15 years old, or does not have an Australian passport, they can apply for a TFN at Australia Post, a Services Australia centre or by post.
To find out more information, visit the Australian Taxation Office website. (https://www.ato.gov.au/individuals-and-families/tax-file-number/apply-for-a-tfn)
With a Kids account, you (as the account owner) hold investments on behalf of the named child. The bank account you link to the Kids Account (being the bank account any withdrawals will be paid to) should be held in the same name as the beneficial owner of those investments. The bank account to which you make any withdrawals to could affect the beneficial ownership of the investments and who is liable for tax on any income or capital gains.
For more information, please refer to Tax and investing for children: A guide for Australian parents. Please note this is not tax advice, and we recommend consulting with your tax adviser.
At any time after your child turns 18, you can choose to transfer the assets in the Kids Account to the beneficiary. There are no obligations to transfer the investments to them, and you can continue to hold and operate the account if preferred.
To transfer investments from the Kids Account to your child, they first need to open an investment account in their own name. Once the account is set up, you can initiate an ‘off-market transfer’ of the investments from the Kids Account to the account held in their name.
Whether a capital gains tax (CGT) event occurs when transferring assets depends on how the Kids Account has been operated and managed. Generally, if the beneficial owner remains the same, there will be no CGT event, meaning your child will take on the original cost base and acquisition date for the investment. The tax considerations can be complex, so we recommend consulting with a tax professional for advice specific to your situation.
Please note this is not tax advice, and we recommend consulting with your tax adviser.
You can invest in more than 450 ETFs traded on the ASX, and more than 400 listed shares. You can also invest in Managed Portfolios built and managed by our investing experts.
Yes. You can transfer holdings from another account to your Kids account by logging in and submitting a ‘Transfer request’. To ensure the transfer runs smoothly, check the beneficiary’s name is correct and matches across both accounts.
If you are transferring from another account where the child is the beneficial owner, generally there should be no CGT event. However, if there is a change in beneficial ownership, e.g. a transfer from your personal account to your Kids account, a CGT event will be triggered.
Please note this is not tax advice, and we recommend consulting with your tax adviser.
Some adults may prefer to invest in their own name on behalf of a child for tax purposes. You can do this when opening a Kids account by providing your own TFN and declaring the investment income in your tax return. In such circumstances, the child will no longer be considered the beneficial owner of the investments. However, you should consider the potential tax implications of this decision.
For more information, please refer to Tax and investing for children: A guide for Australian parents. Please note this is not tax advice, and we recommend consulting with your tax adviser.
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