How to set up a super account for your child

The sooner someone starts saving for retirement, the more money they’ll have in their post-working life. So if you want to help your children get a head start, you can consider setting up a superannuation account for them.

Australia allows minors to have super accounts, but their parents or legal guardians must sign all the documents.

The rules depend on whether your children are employed or not:

  • If minors work for more than 30 hours a week, their employer must pay super equivalent to 10.5% of their earnings – even if they’re casual workers. (Before July 2022, there was also a minimum earnings threshold of $450 per month, but this was removed.)

  • You or your children may voluntarily contribute towards a super account. But if your children aren’t employed or running their own businesses, the contributions are not tax-deductible and do not qualify for the government co-payment.

To set up a super account for your child, follow these three steps:

1. Choose the right fund

Not all funds accept minors, so check that first. Then, you can consider whether the fund:

  • Has built-in features geared towards young people’s changing circumstances for when they complete their studies and start working full time

  • Accommodates the First Home Super Saver Scheme. You or your child can voluntarily contribute up to $15,000 per year, and up to $50,000 in total across multiple years, to your child’s super account as part of this scheme.

You may create a self-managed super fund for your child, but you, or their legal guardian, must act as a trustee on your child’s behalf.

2. Sign up for the fund

Once you’ve selected a fund, you can sign up directly and start contributing. If your child is working, their employer can pay into the super account you created.

Something else you can sign up your children for is FLX. The FLX app can help children save and manage their money by letting them set a goal. They can transfer money and track their progress until they reach that goal. They can also track their spending when they use the FLX prepaid card to make purchases.

3. Teach your children the rules

The amounts you may contribute to a super account while enjoying special tax concessions are limited to:

·       $27,500 per year, before tax

·       $110,000 per year, after tax

So if you and your child are contributing separately, the combined contributions may not exceed these limits to avoid the extra tax.

There are some exceptions to these limits. For example, if your child inherited money they might be eligible to contribute up to three years’ contributions ($330,000) as a single lump sum.

Once the super account is created, your children can’t access the money before they turn 60, except in very limited cases like the First Home Super Save scheme.

Teach your children to start saving by using the savings feature in the FLX App. FLX is linked to your Flexischools account, so you can instantly transfer money from your Flexischools wallet to your child’s FLX account.  Learn more about FLX here.

This is general advice. Read the PDSs & TMDs at before deciding if FLX is right for you. The FLX Services & Flexischools are provided by InLoop Pty Ltd ABN 27 114 508 771 AFSL 471558 (trading as Flexischools). The FLX Prepaid Mastercard is issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131 pursuant to license by Mastercard Asia/Pacific Pte. Ltd.


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