generally, child income for an under 16 year old is not assessed for ftb purposes if they continue to be full time students
FTB is based on the information received from the tax office as to what your taxable incomes are, so it wouldn't show up there. however, if a tip off were set up for income being "hidden", i'm not sure of what would happen as technically you're still earning the money, it's just being given in the name of your children to gain a larger amount of money from the government (FTB) and reduce the tax paid (as the income is being spread over 6 people instead of 2, meaning 6 tax free thresholds and low income offsets instead of 2).
i would make sure you check with ato directly if you can, or an accountant/solicitor/financial advisor to make sure it's going to be a genuine benefit and, if you do it, make sure it's all tied up properly. i have heard of people "hiding" income in the name of their children and being done for fraud (not directly, so i'm not sure of specifics) so you want to make sure everything is legit. there are cases where money paid to children still impacts parents as it had been deemed a way of avoiding tax or gaining a benefit underhandedly kwim?
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I'm going to chat with our accountant when I do the taxes so I'll make sure it's all legit from their point of view, and they are usually pretty good with that sort of thing. I just wanted to make sure that any income my kids had didn't have to go towards daycare expenses, etc.
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