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Wammy(Newbie)Newbie
6 Apr 2026

I opened a minor investment account for each of my children with Vanguard as they were under 18 years old at the time (as trustee for the benefit of the child A/C xxx). As its a minor investment account, Vanguard required me to quote my TFN (there is no option to quote the child’s TFN). I have been told by Vanguard that whenever I choose to transfer they shares to the child after he/she turns 18 it will be done through an off market transfer and there will be no CGT so long as the beneficiary stays the same.

In accordance with this I have since received the child’s first tax statement that was sent to me A/C for the child xxx. I have reported the dividends in my tax return.

it appears since then, I have read on this forum that what vanguard has advised me maybe incorrect as I should have reported the dividends under the child’s tax return?

my queries are as follow:

  1. even though I quote my TFN when i set up the minor investment account (as Vanguard has no option to provide child’s TFN) i should have report the dividends under the child’s TFN to show that the investment had and is always for the benefit of the child as he/she is the legal owner so there will be no CGT event when I later transfer these shares to the child after he/she turns 18 by an off market transfer? Is my understanding correct?
  2. If statement 1 is true, then since I have already incorrectly lodge my tax return reporting the dividends, can I now go and amend my tax return to remove the dividends and report it under the child’s TFN? Will ATO allow this?
  3. if Statement 1 is true, when Vanguard provides the dividends and CGT information to the ATO at the end of each financial year which gets auot pre-fill to my tax return on (since its under my TFN as Vanguard does not give option to quote child’s TFN), if i was to report the dividends under the child’s TFN will ATO systems be able to data match and know that I have complied with my tax obligations and have reported the dividends under the child’s TFN if i remove it under my TFN? As I dont want to be contacted by the ATO that I have not complied with my reporting obligations.

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YellowPotato(Taxicorn)Taxicorn
6 Apr 2026

Will there be a CGT event when I transfer shares I held for my children when they were under 18years?

  • "Vanguard required me to quote my TFN (there is no option to quote the child’s TFN)"
  • Yes, your TFN = you are the beneficiary = CGT when transferring to your child


"You dispose of a * CGT asset if a change of ownership occurs from you to another entity, whether because of some act or event or by operation of law. However, a change of ownership does not occur if you stop being the legal owner of the asset but continue to be its beneficial owner."

  • INCOME TAX ASSESSMENT ACT 1997 - SECT 104.10 (2)
  • Change in beneficial owner = CGT


  1. No, there's CGT on transfer because your TFN = you are the beneficial owner
  2. No, your TFN = distributions (the income) are attributed to you
  3. No


Liked by knaresbro
TaxTalk1234(Master)Master
7 Apr 2026

I am afraid I have a different view to YellowPotato.


Using your TFN does not automatically make the ownership yours for CGT purposes, nor for dividend declaration purposes. The Vanguard investment account is specifically setup with you as trustee on your children's behalf so prima facie, the investment is legally your children's. HOWEVER, whether the investment is beneficially your children's depends on a number of factors, including what was done with the dividend income. Was it placed in a bank account in your children's name (or in your name as trustee for them), or were they given it to spend, or was it used for yourself or in a manner which you directed? (even if it was for costs for the kids). You need to determine whether the investment would be considered beneficially yours or theirs. The fact that you declared the dividends in your tax return can be considered indicative, but not conclusive as you can argue that you made a mistake.


If it is beneficially as well as legally theirs - no CGT on transfer and yes, you have declared the dividends incorrectly and will need to amend (and lodge an objection for the years that extend beyond the available amendment period). Note that the taxation of income of minors over $416 is very high, so there may be a decent amount of back tax and interest if the dividends (plus some other income such as interest) were over this amount unless the initial investment was from funds that arose from an inheritance or from their own efforts such as part-time work.


If beneficially yours - CGT on transfer, but no need to change past treatment of dividends.


This link is good reading on this topic: Children's share investments | Australian Taxation Office

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