Christmas is now upon us and with so much time spent away from loved ones this year we all want to invest and help our families more than ever. For Grandparents financially helping adult children and wanting to leave a lasting legacy for their grandkids, here is our Christmas Clever Investment Advice for you!

Giving your kids a financial head start is something we would all like to do but how easy is it? Well, Stockbrokers allow adult investors to set up an account with a designation to the child!

Minors are not legally allowed to own assets in Australia however they can beneficially own assets. When they turn 18 the shares can then be transferred to their name and because there is no change in the beneficiary of the shares the transfer is likely to have zero capital gains tax implications. They can then use their tax-free allowance of $18,200 to sell some of the shares they accumulated since childhood OR if they are as savvy as you, continue to pay into the investment until that rainy day comes around.

The tax-free annual threshold for minors is $416. The parent or grandparent can buy shares periodically and assuming none are sold and that dividends are below $416; no tax is payable year to year. Investing in growth-based stocks that pay minimal dividends you could have as much as $41,600 in the minors account before any tax is payable, assuming a 1% dividend.

If you would like to know more about how we can help you invest in your family, please get in touch on 03 5975 0488.

Wishing You a Merry Christmas


The Team at SJS Accounting Strategies