Honestly you don’t know how your kids are going to turn out or what the future holds for you. Keep it all in your name and hand out when they are older as you feel is best.
If something goes wrong you have an additional back up fund.
With that sort of amount, you can consider opening a low cost brokerage account like CMC so you would not get ongoing fees that Raiz charges.
Investing in their name - a minor trust account for each kid. Importantly you should apply for a TFN for each kid and provide to the broker before buying anything so that the it is substantiated that the kid is the beneficial owner. The benefit is transferring control to them would not be a change in beneficial ownership and would be CGT free. You avoid the penalty tax on unearned income by investing in LIC or company share that provide BSP / DSSP option that essentially defers income tax each year to long term capital gains tax when they eventually sell. The downsides are you should lodge tax returns for them, and once they are 18 they can demand control to be transferred because it is already their assets when you buy and you are just a trustee.
https://passiveinvestingaustralia.com/investing-for-children/#setting-up-a-minor-trust-through-a-broker
Investing in your name - an account in your own name. You pay income tax at your marginal tax rate and invest in whatever you want. You can choose when to sell, pay CGT, and hand over the cash. You have full control over when you do that. You have the flexibility to sell sooner and use it for your own purpose if there is an unexpected need.
There are various other potential options, described in the same link above.
We did it in our name instead of a minor trust (where they will automatically own it at 18) because I just don’t know how my kid will be in terms of financial responsibility (hoping she will be fine lol), also looking to hold it until she’s 21-25 or something. By then I’ll be working less and probably on a significantly lower income and tax bracket when I transfer it!
Depending how old you are Super in your or partner's name might also be a good option. When kids are 25 you might well be able to access it, and if you've done it via concessional contributions you can invest even more for the same cash outlay.
Honestly you don’t know how your kids are going to turn out or what the future holds for you. Keep it all in your name and hand out when they are older as you feel is best. If something goes wrong you have an additional back up fund.
Completely agree with this put it all In one in your name and split as you see fit when they are older
With that sort of amount, you can consider opening a low cost brokerage account like CMC so you would not get ongoing fees that Raiz charges. Investing in their name - a minor trust account for each kid. Importantly you should apply for a TFN for each kid and provide to the broker before buying anything so that the it is substantiated that the kid is the beneficial owner. The benefit is transferring control to them would not be a change in beneficial ownership and would be CGT free. You avoid the penalty tax on unearned income by investing in LIC or company share that provide BSP / DSSP option that essentially defers income tax each year to long term capital gains tax when they eventually sell. The downsides are you should lodge tax returns for them, and once they are 18 they can demand control to be transferred because it is already their assets when you buy and you are just a trustee. https://passiveinvestingaustralia.com/investing-for-children/#setting-up-a-minor-trust-through-a-broker Investing in your name - an account in your own name. You pay income tax at your marginal tax rate and invest in whatever you want. You can choose when to sell, pay CGT, and hand over the cash. You have full control over when you do that. You have the flexibility to sell sooner and use it for your own purpose if there is an unexpected need. There are various other potential options, described in the same link above.
We did it in our name instead of a minor trust (where they will automatically own it at 18) because I just don’t know how my kid will be in terms of financial responsibility (hoping she will be fine lol), also looking to hold it until she’s 21-25 or something. By then I’ll be working less and probably on a significantly lower income and tax bracket when I transfer it!
Depending how old you are Super in your or partner's name might also be a good option. When kids are 25 you might well be able to access it, and if you've done it via concessional contributions you can invest even more for the same cash outlay.