Teen casual job - family SMSF or other super option?

All the cool kids are into space

 

My oldest completed her first tax return this year after starting casual employment in June, and received a partial co-contribution from the ATO for a smallish regular voluntary contribution since setting up her first super fund in Dec 2020. It's been a a great motivator to continue to contribute a small amount each fortnight and get the full $500 next year.

The entire process has been a great oppertunity for her to start learning about savings, returns, compounding, fees, asset allocation, cap weighted low cost index funds - particulary when we looked through the indexes to some of the larger holdings in both the Australian and international (US) indexes.

 

We're looking at doing the same, too. She's already had a quick lesson on the idea of compounding interest, and her shares dividends are set up with DRP. When it's explained as "you'll be getting money for free" it's usually a good motivator

 

I think it was kind of fortunuate that she only got a partial contribution this year. There was clearly excitment when it came through, but then immedidate motivation to undertand how she could get the full amount next year Where's that next mountain to climb again?

 

Careful. You may train the lass too well and none would like this to be the result.

 

Just one small cog in a much larger wheel of shepherding a minor into young adulthood.

 

Second tax return completed with daughter 1.

Thank you franking credits.

Thank you government super contribution.

Big, big thank you to awesome local small business for her employment.

 

Actually bold section is incorrect unless the child works more than 30 hours in a week.

From 1 July 2022, you will need to pay super for your employees who are under 18 years old if they work more than 30 hours for you in a week.

Changes to super for under-18s

Something else for the government to fix I guess.