Hi girls. Just re: tax and bank accounts for kids... this is from the ato website


Interest

If a child quotes their date of birth, they are entitled to a threshold of $420 per income year on interest. If they don?t quote their date of birth, the threshold is the same as the adult threshold of $120 per income year.

Where the total interest earned during an income year is $420 or more

* if the child quotes a TFN, the investment body will not withhold pay as you go (PAYG) tax, and
* if the child does not quote a TFN, the investment body will withhold PAYG tax at 46.5%.

This applies to the total interest earned (not just the amount above $420, or the payment period threshold equivalent).

If the child has had PAYG tax deducted, they will need to lodge a return to claim these amounts back from the Tax Office. A child who does not have a TFN will need to get one before they can lodge a return.

In all likelihood they're not going to be earning that kind of interest but if some of you do have stacks of cash and find a high interest acc then... well it's good to know this!

HTH