Hi Paul, regarding investing for grandchildren, we set up share accounts for them and I was recently shocked to find that above a net annual income of $416, the child is taxed at 66%! Disgraceful, outdated government policy. We are investigating investment bonds to reduce the tax impost. The government should align its policies to present day circumstances.

dividend income stream of

Reply to article

For original story, Click Here.

You mentioned the investment for the grandchild is in trust. Assume the grandparent/s is the trustee, will that not affect their aged pension. I have 4 (soon to be 5) grandkids, and I gift them $1k each, then $90 per quarter, equivalent to a dollar a day. Invested in a range of EFT's vis Superhero, with the funds held as "trustee" for the kids, but I must include dividends etc in my tax return. Whilst you cannot give tax advice, is the "trustee" route tax and Pension effective?

Reply to article

For original story, Click Here.