Author Topic: Children busking  (Read 1731 times)

chouchouu

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Children busking
« on: January 27, 2020, 12:54:01 AM »
So my daughter recently started busking, she has only busked three times but has made quite a bit from it. I did some googling and it seems that busking falls under a "hobby" so she doesn't need an abn. Would her earnings be considered "excepted income" from the ATO? Does anybody know how this would work? She is only seven, so I was thinking of letting her earnings accumulate for a while in her bank account until she is older before investing it. I thought shares and other stuff might be a bit too abstract at this age, plus the headache of filling out her tax, what do you think?

MrThatsDifferent

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Re: Children busking
« Reply #1 on: January 27, 2020, 01:09:13 AM »
Honestly, knowing what I know now, I wish someone had taken the time to teach me and really help me to understand money, saving and investing. If I had a kid in your situation, I would start a: 1/2 is yours to do what you want, 1/4 we put in a HISA, and 1/4 we invest in an index fund. Id take the time to show her how the world works, even at 7. Aussie tax returns are insanely easy. She could build a nice little nest egg for herself. Maybe you could do a yearly matching on her bday or something? Have fun with it and she will too.

marty998

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Re: Children busking
« Reply #2 on: January 27, 2020, 02:46:01 AM »
Honestly, knowing what I know now, I wish someone had taken the time to teach me and really help me to understand money, saving and investing. If I had a kid in your situation, I would start a: 1/2 is yours to do what you want, 1/4 we put in a HISA, and 1/4 we invest in an index fund. Id take the time to show her how the world works, even at 7. Aussie tax returns are insanely easy. She could build a nice little nest egg for herself. Maybe you could do a yearly matching on her bday or something? Have fun with it and she will too.

The problem here is if she invests the earnings in the name of the kid it might fall under the punitive tax rates levied against minors for unearned income.

If you want to keep it in cash for her, the best place is probably your mortgage offset account. Keep a spreadsheet record of the interest you save, and add it to "her" total.

MrThatsDifferent

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Re: Children busking
« Reply #3 on: January 27, 2020, 05:08:20 AM »
Honestly, knowing what I know now, I wish someone had taken the time to teach me and really help me to understand money, saving and investing. If I had a kid in your situation, I would start a: 1/2 is yours to do what you want, 1/4 we put in a HISA, and 1/4 we invest in an index fund. Id take the time to show her how the world works, even at 7. Aussie tax returns are insanely easy. She could build a nice little nest egg for herself. Maybe you could do a yearly matching on her bday or something? Have fun with it and she will too.

The problem here is if she invests the earnings in the name of the kid it might fall under the punitive tax rates levied against minors for unearned income.

If you want to keep it in cash for her, the best place is probably your mortgage offset account. Keep a spreadsheet record of the interest you save, and add it to "her" total.

Good point and great solution

chouchouu

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Re: Children busking
« Reply #4 on: January 27, 2020, 12:45:41 PM »
Honestly, knowing what I know now, I wish someone had taken the time to teach me and really help me to understand money, saving and investing. If I had a kid in your situation, I would start a: 1/2 is yours to do what you want, 1/4 we put in a HISA, and 1/4 we invest in an index fund. Id take the time to show her how the world works, even at 7. Aussie tax returns are insanely easy. She could build a nice little nest egg for herself. Maybe you could do a yearly matching on her bday or something? Have fun with it and she will too.

I used to do matching when they were younger but they're pretty good savers now and the amount she can get from busking is already much more than a seven year old needs. Yesterday she played for about 20 minutes and got $97, then she had a break and played for a little more until she got over a hundred. She was absolutely raking it in and now I don't need to beg her to practice anymore.

chouchouu

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Re: Children busking
« Reply #5 on: January 27, 2020, 12:48:20 PM »
Honestly, knowing what I know now, I wish someone had taken the time to teach me and really help me to understand money, saving and investing. If I had a kid in your situation, I would start a: 1/2 is yours to do what you want, 1/4 we put in a HISA, and 1/4 we invest in an index fund. Id take the time to show her how the world works, even at 7. Aussie tax returns are insanely easy. She could build a nice little nest egg for herself. Maybe you could do a yearly matching on her bday or something? Have fun with it and she will too.

The problem here is if she invests the earnings in the name of the kid it might fall under the punitive tax rates levied against minors for unearned income.

If you want to keep it in cash for her, the best place is probably your mortgage offset account. Keep a spreadsheet record of the interest you save, and add it to "her" total.

I don't have a mortgage but I guess I could buy shares on her behalf.