Saving / Bank Account For Baby


	Saving / bank account for baby boney bream [17 Posts] Submitted by boney bream on January 7, 2012 - 4:28pm. Joined: 30/10/2011 Hello, I was thinking about opening an account for our 4 month old daughter as a place to hide away some spare cash. What are the rules/difficulties in regards to interest earned ect. Can this be tax free up to say 50k??? Can anyone recommend an outstanding account to set up for our princess? thanks login or register to post comments Shape [908 Posts] January 7, 2012 - 5:23pm Joined: 24/09/2010 I dont think tax is payable for any of the kids/youth saving accounts.... Regards Michael Michael Chan ----- Finance (Mortgage/Commercial) Broker---- Michael@Shapehomeloans.com.au \| 1300 SH LOAN \| 1300 74 5626 \| Fax: 02 8212 8909\| Same Bank. Better Rates. Served With A Passion. Terryw [12322 Posts] January 7, 2012 - 5:27pm Joined: 01/01/2002 Kids can only earn around $416 in passive income and then they are taxed at penalty rates. Regards Terryw Shape [908 Posts] January 7, 2012 - 5:34pm Joined: 24/09/2010 Terryw wrote: Kids can only earn around $416 in passive income and then they are taxed at penalty rates. dame...didn't know that- that sort of sucks...$416 is nothing :( Michael Chan ----- Finance (Mortgage/Commercial) Broker---- Michael@Shapehomeloans.com.au \| 1300 SH LOAN \| 1300 74 5626 \| Fax: 02 8212 8909\| Same Bank. Better Rates. Served With A Passion. Terryw [12322 Posts] January 7, 2012 - 5:37pm Joined: 01/01/2002 Otherwise everyone would be saving tax by putting stuff in the names of their kids. A few years ago it was up to $2,666 with the low income tax rebate, but they scrapped that. Regards Terryw Shape [908 Posts] January 7, 2012 - 5:44pm Joined: 24/09/2010 yea i could see that loophole happening. But most kids online savers are like 1% if that....so didn't see much benefit using the loophole if the rate of return is so low. Michael Chan ----- Finance (Mortgage/Commercial) Broker---- Michael@Shapehomeloans.com.au \| 1300 SH LOAN \| 1300 74 5626 \| Fax: 02 8212 8909\| Same Bank. Better Rates. Served With A Passion. Paullie [210 Posts] January 7, 2012 - 5:58pm Joined: 14/03/2009 I scrapped my kids online savers a year ago. Now I place their funds in our offset and keep a record of their savings. Performance Training Centre Perth http://www.ptcperth.com.au boney bream [17 Posts] January 7, 2012 - 6:04pm Joined: 30/10/2011 Thanks for your replies. So, if the account was 4% interest I can only put in about 10k before the interest will be too high. Terryw [12322 Posts] January 7, 2012 - 7:19pm Joined: 01/01/2002 The main problem was people distributing income from discretionary trusts to children. Imagine before a family with 10 kids = $26,660 in tax free income each year. see the rates herer http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/20046.htm&page=5&H5 Regards Terryw Terryw [12322 Posts] January 7, 2012 - 7:26pm Joined: 01/01/2002 Children could have earned up to $3,334 in the 2010-11 income year with no tax Regards Terryw Previous Topic GST included within rental payments Next Topic Asset protection	User login Username: * Password: * Register Forgotten your password? Investing Resources Active forum topics Good time to buy USD ? Author: Rowan MCcole [8 replies] Who can I trust? : US Property Investing Author: avest50 [0 replies] more topics Activity Feed Recent blog posts Secure the right loan for your investment Author: Property Investing News [2 comments] Home lending approvals increase slightly Author: Property Investing News [0 comments] more Join Our Facebook Community Featured Investing Resource Register Your Copy Who's online There are currently 1 user and 83 guests online. Online users javidan Social Media Today's Tip Nothing down deals are common... but finding a nothing down deal that makes money can be quite tricky <more>