Your Kids Account is theirs, so any tax owed is theirs too. If your child receives more than $200 NZD in a year from income that hasn’t already been taxed (i.e. tax is deducted from your interest on savings, so NOT included in the $200 threshold), they will need to file an IR3 form - or you’ll need to on their behalf. Any dividends they receive through Hatch will be counted to that total.
Just like an individual Hatch account, if a child hits the threshold of $50,000 NZD invested overseas, they’ll fall under the FIF rules. They’ll also be a very well financially set up child, so a little tax calculation shouldn’t put you off (and you can get Hatch to do the FIF calculations for you)!
💡 Note: Your tax obligations and those of your children are unique - if you're unsure, we recommend you seek professional tax advice. Your tax situations may change over time; it’s your responsibility to keep up to date with changes.