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.
If they hit the threshold of $50,000 NZD invested overseas, they’ll also fall under the FIF rules (get more info here). They’ll also be a very well set up child, so a little tax calculation shouldn’t put you off!
Opening Kids Accounts
- Does Hatch have Kids Accounts or portfolios?
- Who can open a Kids Account?
- How do you open a Kids Account?
- How many Kids Accounts can I create?
- Can I move money/shares from my account to my Kids Account?
- How do I create a Kids Account if I don't have a New Zealand birth certificate or guardianship order?
Using a Kids Account
- Who will manage my Kids Accounts?
- Who can deposit money into a Kids Account?
- How do I withdraw money from my Kids Accounts?
- Can children get $10 NZD top-ups for referrals?
- What will happen to my Kids Accounts when my child turns 18?