GRANDPARENTS will have the opportunity to give their grandchildren a financial head start in life if the NSW Coalition is re-elected on Saturday.
Premier Dominic Perrottet said through the Kids Future Fund, grandparents would be able to partner with parents to make contributions to their children’s future.
“For some kids in NSW, there could be up to six adults contributing to their fund, making small investments over time to grow their wealth and help secure their financial future,” he said.
Each account would receive an initial $400 contribution provided by the government when created.
Each year, the child’s parents (or grandparents) would be able to contribute up to $1000 per year to the account.
The government would match these contributions up to $400 per year until the child turned 18.
If parents (or grandparents) make a contribution of $400 each year, alongside the government’s co-contribution, the fund is expected to be around $28,500 by the time the child turns 18.
However, if they contribute the the maximum amount of $1000 per year, the fund is expected to be around $49,000.
For families receiving Commonwealth Family Tax Benefit A, the government will automatically contribute $200 a year to the child’s account without requiring a matched contribution from parents (or grandparents).
If the parents (or grandparents) also contribute $200 each year, the government will match this with an additional $200.
Contributions can be made to the fund after the child turns 18, however the Government will not provide any further matched contributions.
When the child turns 18, they will be able to draw down on the fund for only two purposes: housing and education.
