Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
hashleigh84(Initiate)Initiate
21 Nov 2022

If i have purchased shares in trust of my minor child (not a formal trust) which i plan to transfer her once shes 18 in an off market transfer.


Does she have to put the dividends into her tax return to avoid the CGT ?

or can i put them into my return and still avoid the CGT ?


the money is purely hers i do no spend or touch the income, but put the money in for her.


please advise which tax return i should be putting them in to avoid the CGT once shes 18.


1,942 views
4 replies
1,942 views
4 replies

Most helpful response

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
22 Nov 2022

You need to:

  1. apply for a trust TFN, even though it is an informal trust
  2. quote the trust TFN to the broker, and share registries
  3. declare dividends in the trust tax return - show beneficiary under legal disability

Then shares can be transferred at age 18 with no change of beneficial ownership = no CGT.

All replies

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
22 Nov 2022

You need to:

  1. apply for a trust TFN, even though it is an informal trust
  2. quote the trust TFN to the broker, and share registries
  3. declare dividends in the trust tax return - show beneficiary under legal disability

Then shares can be transferred at age 18 with no change of beneficial ownership = no CGT.

hashleigh84(Initiate)Initiate
22 Nov 2022

Hi I have done step 1 and step 2....(got my 7 year old a TFN)


There is no Formal Trust setup, its just a brokerage account "in trust for"- therefor NO trust tax return.


Question is should I be putting this in her Personal tax return?


or is mine an option?

hashleigh84(Initiate)Initiate
23 Nov 2022

Oh wow i have never heard this information before? Is this kind of a legal "loophole" to avoid the minors high tax rates?

ive never heard this one before :-)


Featured articles

How to work out your tax residency

15 Apr 2026 · 8 min read time

Crypto and your taxes

4 Dec 2023 · 9 min read time

Top liked users

  1. Taxduck

    (Taxicorn)

    1272 likes

  2. Bruce4Tax

    (Taxicorn)

    1115 likes

  3. YellowPotato

    (Taxicorn)

    338 likes

  4. Ken_Oath

    (Master)

    199 likes

  5. knaresbro

    (Devotee)

    141 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    3395contributions

  2. Taxduck

    (Taxicorn)

    2812contributions

  3. YellowPotato

    (Taxicorn)

    883contributions

  4. knaresbro

    (Devotee)

    295contributions

  5. TobyJDodd

    (Devotee)

    176contributions

Loading
Holding shares in trust for Minor | ATO Community