Parents hiding cash in kids accounts
Article by Mozo
With many people looking for ways to save a bit of cash during this difficult period, the Tax Office has urged people to resist the temptation to stash money away in children’s bank accounts.
According to the group, a growing number of Aussies are setting up these accounts in an effort to put some of their cash out of reach of the tax man.
However, the Herald Sun notes that while the account might be in a little one’s name, in the eyes of the law the money in it still belongs to the parent if the child makes no contributions to the balance.
“It seems most likely that a child’s account will attract notice if large amounts are deposited or withdrawn. Most kids are not going to build huge bank deposits with their pocket money,” the paper explained.
For those who are looking to make their money go further without falling foul of the law, the Advertiser has urged people to look into online savings accounts, many of which are offering some high-interest savings deals at the moment.