Minor Trading Account

[christine11]

Hi all,

I've been wanting to buy some shares with money I have saved up however I am only 15. I could get my parents to open an account on my behalf but then It will be taxed at a higher rate. If I just put down my birth year as 1990 when register for say an E*Trade account and put my own TFN in will it work or will they check with the Tax Office and / or linked bank account for my age?

Thanks in advance for your help.

 

[Whiskers]

Hi Christene

I wouldn't apply using a false date of birth or name etc. That could get you into a lot of trouble for fraud etc.

You can earn a certain amount of income without paying tax or even having to lodge a tax return. Have a read through the link to the ATO.

I'd suggest you discuss it with your parents/guardian and if you go ahead, have one of them act as your trustee until you are 18.

From an income tax perspective you can limit your tax while you are under 18 by;

1. making sure all your proper expenses are claimed if you earn more than the minimum threshold and need to lodge a tax return, and
2. planning to invest in more longer term investments that you can sell for profit after you are 18 and when you will then be subject to a $6,000 tax free threshold instead of $416.

Hope that helps.

http://www.ato.gov.au/individuals/content.asp?doc=/content/20046.htm&page=5&H5

 

[tech/a]

You wont make enough to be taxed.
Well unless your Paris Hilton!

 

[awg]

many companies do not allow minors to own their shares.

BHP for instance.

You need a TFN, or dividends will be taxed (withheld) at the highest rate.

You will need to lodge a tax return, if franking credits are issued (most Oz shares).

 

[xice]

there are much easier ways to break the law....agree with above.

 

[nunthewiser]

Hi all,

I've been wanting to buy some shares with money I have saved up however I am only 15. I could get my parents to open an account on my behalf but then It will be taxed at a higher rate. If I just put down my birth year as 1990 when register for say an E*Trade account and put my own TFN in will it work or will they check with the Tax Office and / or linked bank account for my age?

Thanks in advance for your help.

For a start you need the appropriate identification to open an Etrade account which is to be certified by a JP or similar due to new anti laundering/anti terrorism hooplah they brang in . same as commsec actually with ALL new accounts not linked to existing ones.

 

[bluelabel]

It seems like you may have difficulties trading at your age from the responses above. I think the ASX has a schools trading competition. Practice on there till you are 'legal', research more and then hit the market with the knowledge you have gained.

 

[christine11]

Thanks everyone for all your help I'm going to go with a trust account.