We know parents and carers work hard to do their best by their kids and set them up for the future. We want to make it easier.
That’s why a re-elected Liberal and Nationals Government will introduce the Kids Future Fund.
A life-changing Liberal and Nationals plan to futureproof the finances of generations to come, giving them the best start to life.
HOW IT WORKS
Every child born in NSW would be eligible for a Kids Future Fund account managed by the NSW Government
Each account would be seeded with a deposit from the NSW Government of $400 per child.
Parents and grandparents can contribute up to $1000 to the account per ear with a matched contribution from the Government up to $400 per year.
Like our kids, the account will grow over time from investment returns.
When the child turns 18, they can withdraw money from the fund to invest in their education or use towards buying a home.
“This is a way for families and Government to work together to invest in the next generation – from their first steps to their first home and first career.”
Paul Toole, Deputy Premier and Leader of the NSW Nationals
WHO IS ELIGIBLE
In normal operation of the scheme, children born in NSW, with at least one parent being a permanent resident or citizen.
In the first year of the scheme, eligibility will be open to children aged up to 10, in the calendar year 2023.
WHAT ABOUT FAMILIES LIVING IN BORDER COMMUNITIES
We recognise some border families may give birth just over the border.
Guidelines for the Funds will ensure children born to NSW parents in non-NSW hospitals will still be eligible for the program.
WHO CAN CONTRIBUTE
Every year a child’s parents or grandparents can contribute up to $1000 a year to a child’s account.
The Government will match these contributions up to $400 per year.
Families receiving Family Tax Benefit A will get an automatic $200 contribution to their child’s fund each year and are still eligible to get a further $200 with a matching contribution.
WHAT HAPPENS TO THE MONEY THAT FAMILIES CONTRIBUTE
All money will be pooled in a special deposit account to be invested.
HOW MUCH MONEY WOULD BE IN THE FUND BY THE TIME A CHILD TURNS 18
If parents 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.
If parents contribute the maximum amount of $1,000 per year, the fund is expected to be around $49,000.
“By making small investments over time, we will be able to grow the wealth of our children so they can secure their financial future through education and housing.”
HOW CAN THE MONEY BE USED
- A contribution towards purchasing residential property in NSW
- A contribution towards purchasing land zoned residential in NSW
Government approved education providers and prescribed learning materials and associated costs such as:
- Textbooks and other prescribed learning materials
- Private tuition fees
- Tools required for getting a qualification
WILL RECIPIENTS HAVE TO PROVIDE EVIDENCE OF THE INTENDED PURPOSE OF THE SPENDING
Guidelines will be created that will outline the requirements that will need to be met in order to draw money out of the fund.
CAN YOU KEEP YOUR FUND ONCE YOU TURN 18
If the fund is not drawn down at 18 families can continue to make contributions to the account, and interest will continue to accrue.
However, the NSW Government will not contribute further to the account.
Individuals may choose to hold their funds in reserve and use them later in life, for example further their education or re-skill.
DO YOU HAVE TO WITHDRAW ALL OF THE MONEY AT ONCE
Money will not have to be withdrawn all at once. The remaining funds can continue to grow.
WHAT IF A CHILD MOVES INTERSTATE OR OVERSEAS
If a family moves interstate or overseas, parents will not be able to make contributions and contributions will not be made by the NSW Government.
These children will be able to call on whatever amount of money is in their name upon turning 18. Interest can still be earned on whatever contributions were made before moving interstate or overseas.