Can I open an ASX share account in my child's name?

No. Minors cannot enter into a binding contract, so they cannot legally hold shares directly on the ASX. The standard workaround is a bare trust structure where a parent acts as trustee. The shares are held for the child's benefit, and legal ownership transfers when they turn 18.

What is the tax rate on investment income for kids in Australia?

For the 2024-25 financial year, unearned income (dividends, distributions, capital gains) up to $416 is taxed at ordinary marginal rates, which is usually nil. Income from $417 to $1,307 is taxed at 66%. Above $1,307, the entire amount is taxed at 45% plus the Medicare levy. This is known as the minors tax.

Does Sharesies have a proper kids account?

Yes. Sharesies offers a dedicated Kids plan for $2 per month. It uses a bare trust structure where the parent registers but the child is the account holder. It covers $500 in buy/sell orders and $1,000 in auto-invest per month. Sharesies uses a custodian model, not CHESS sponsorship.

Is Raiz Kids a CHESS-sponsored account?

No. Raiz Kids operates under a custodian model, meaning the underlying ETFs are held in Raiz's name on behalf of your child, not directly on the ASX register. This is standard for micro-investing platforms. Raiz charges a $5.50 monthly fee and bundles all trading costs into that fee.

Can I use CommSec Pocket to invest for my child?

CommSec Pocket does not support kids or minor accounts. You can open a standard account in your own name and invest in ASX ETFs from $50 with trades from $2, but the assets remain legally yours. For a proper bare trust structure, consider Sharesies, Raiz Kids, Stockspot, or Vanguard Personal Investor.

What happens to a bare trust account when my child turns 18?

Legal ownership of the assets transfers to the child at age 18. Some platforms handle this as a straightforward account conversion. Others may require you to sell the holdings and re-buy in the child's name. It is worth checking the platform's transfer process before you open the account to avoid unexpected selling costs.

Guide · micro investing

How to invest for your kids in Australia: minor accounts, trust setups, and which platforms support them

What an Australian 'kids account' actually means, how it's structured legally, what tax issues to watch, and which platforms make it easy.

By Investmatch Research Team · Last updated 15 May 2026

Why can't you just open an ASX account for your child?

Under Australian law, minors cannot enter into a binding contract. That means a child cannot legally hold shares in their own name on the ASX. If you want to invest for your kids, you need a structure that puts an adult in the legal driver's seat while keeping the economic benefit with the child.

The most common setup is a bare trust, also called a parent-as-trustee arrangement. You (the parent) open an account as trustee for your child. The assets belong to the child in equity, but you control the buying and selling until they turn 18. At that point, legal ownership transfers to them.

There is a tax catch. Unearned income for minors (dividends, distributions, capital gains) is taxed at penalty rates once it exceeds $416 per financial year. Above that threshold, the rate jumps to 66% for non-employment income under the ATO's minors tax rules. So you need to think about how much you invest and what type of assets you hold.

What 'Kids Account' actually means on different platforms

Not every platform that says "kids account" works the same way. Some are genuine bare trust structures. Others are just a parent's account with a nickname.

Sharesies: a true minor account

Sharesies has a proper kids account (AS-008 = true). You register as the parent, but the child is the account holder. The account is held under a bare trust structure. It costs $2 per month on the Kids plan, which covers $500 in buy/sell orders and $1,000 in auto-invest orders per month. If you exceed those limits, pay-as-you-go kicks in at 1.9% per trade (capped at $6 for ASX trades).

Sharesies is a custodian model, not CHESS sponsored. That means the shares are held in Sharesies' name on your child's behalf, not directly on the ASX register. You get fractional shares on both ASX and US markets, and auto-invest can spread across multiple assets. DRP is supported.

Raiz Kids: round-up investing for under-18s

Raiz Invest offers Raiz Kids as a dedicated minor account (AS-008 = true). It works as a custodian model. You can't buy individual ASX shares or US stocks. Instead, Raiz invests into pre-built ETF portfolios using round-ups from your everyday spending, one-off deposits, or recurring transfers.

The monthly fee is $5.50 (the standard Raiz plan). There is no brokerage on trades, because execution costs are bundled into the management fee. Raiz Kids supports fractional units in the underlying ETFs and auto-invest with portfolio rebalancing. It does not offer DRP, but distributions are automatically reinvested into the portfolio anyway.

CommSec Pocket: no minor account

CommSec Pocket does not support kids or minor accounts (AS-008 = false). You can open a standard account in your own name and invest in a selection of ASX ETFs from $50, with trades from $2. But there is no bare trust structure available. If you want to invest for a child here, the assets remain legally yours.

Stockspot: managed portfolios for kids

Stockspot offers kids accounts (AS-008 = true) within its managed portfolio service. It is CHESS sponsored, so the ETFs are held on the ASX register in your child's name (with you as trustee). The minimum investment is $1,000. The monthly fee is 1% of the portfolio balance (all-inclusive, no brokerage). Auto-invest is available with weighted rebalancing. DRP is supported.

Vanguard Personal Investor: kids account available

Vanguard Personal Investor supports kids accounts (AS-008 = true) under a custodian model. You can buy Vanguard ETFs with $0 brokerage (sells cost $9 flat). Non-Vanguard ASX shares cost $9 each way. The minimum initial investment is $200. There is no monthly platform fee. Auto-invest is supported across multiple assets. DRP is not offered, but distributions can be reinvested manually.

Tax planning: staying under the $416 threshold

The $416 threshold is the key number. If your child's unearned income stays at or below $416 in a financial year, it is taxed at ordinary marginal rates (which usually means tax-free if they have no other income). Between $417 and $1,307, the rate is 66%. Above $1,307, the entire amount is taxed at 45% plus the Medicare levy.

Practical strategies include:

Investing in growth assets (low-dividend shares or ETFs) to keep distributions minimal.
Using AMIT cost base adjustments to reduce taxable distributions from ETFs.
Keeping the portfolio small enough that dividends and distributions stay under $416.
Considering insurance bonds (not covered here) as an alternative with a 30% corporate tax rate.

How to set up a kids investment account: a checklist

Choose your structure. For most families, a bare trust (parent as trustee) is the simplest option. You will need the child's TFN and your own TFN.
Pick a platform that supports minor accounts. Check AS-008 = true. Sharesies, Raiz Kids, Stockspot, and Vanguard Personal Investor all qualify. CommSec Pocket and Spaceship Voyager do not.
Open the account in your name as trustee. You will provide your ID and the child's details. The account will be labelled "[Your Name] as trustee for [Child's Name]".
Link a bank account. Deposits come from your bank account. Withdrawals go back to you as trustee.
Fund and invest. Start small. Monitor the $416 threshold each financial year. If you exceed it, you will need to lodge a tax return for the child.
Plan the handover. When the child turns 18, legal ownership transfers. Some platforms make this straightforward; others require you to sell and re-buy. Check the platform's process in advance.