Tax implications of investments in children's namesl

We have 2 young children under 3 and they currently have basic bank accounts with a few thousand dollars in them. We top this up regularly with "pocket money". We were thinking of investing their money in some basic managed share funds and just letting it look after themselves until they need a home deposit one day.
My questions are
1. If I don't want the kids to know about the accounts til they are well over 18, do I have to put the accounts in my name instead of theirs?
2. If the income from the accounts reaches a tax threshold, what happens then?

I assume investing in kids names would be a tax rort loophole that probably has rules associated. Would love to hear from anyonr who knows what the basic options are for investing for the kids.

Our overall goal is simple - the best way to put some money aside for them each month in some form of investment and hopefully give it to them in 25yrs as their own home deposit that they didn't know existed.

Cheers!

 

If you're after a tax advantaged savings consider insurance bonds - minimum 10 yr term but 0% tax. You can keep adding to it but not withdraw until 10 yrs has lapsed otherwise you're up for tax.

Kids have a relatively low tax threshod then pay the top rate.

 

If you don't want them to know about it then it cannot be in their names. You could consider a trust relationship - you as trustee for them or trustee for a discretionary trust. Factor in set up and running costs

Tax free threshold is just $416 and then the tax rate jumps to 66%

Alternatively just use the money to pay down your non deductible debt and lend them money when they reach 18 - more control.

 

I remember looking into this as well, and the general advice was best way to help your kids out is to pay off as much of your mortgage as possible so you can help them out later