Yahoo Finance Perrottet offers kids up to $49k: How it will work
Dominic Perrottet has promised NSW parents his government will financially contribute to their kids' futures.
NSW Premier Dominic Perrottet has promised a major investment in the future of young people.
If it wins the next election, the Coalition will create savings funds for young people to spend exclusively on housing and education when they turn 18.
Perrottet called it the most significant financial-security investment in NSW history, tipped to cost the government around $850 million over a four-year term.
But where will the money be kept, how will it be invested and what happens if you move states? This is everything we know.
How will the fund work?
Every child aged 10 and under in 2023 in NSW, and every newborn thereafter, will receive a fund with a starting investment of $400.
Parents and carers can make additional payments of up to $1,000 into the accounts, which the government will match to the tune of up to $400 a year.
If parents pay $400 a year extra, the funds will be worth $28,000 by the time a child turns 18, and if they pay the maximum $1,000-a-year top up, the funds could be sitting at an estimated $49,000.
What if you move out of NSW?
A spokesperson from the premier’s office told Yahoo Finance that if a family moved out of NSW, payments would no longer be made by the government and parents would also not be able to make contributions anymore.
Do you have to be an Australian citizen?
Yes. At least one parent will need to be an Australian citizen or permanent resident to gain access to the scheme.
Where will the money be held?
The money will be invested and each child will have an account which is actually a representation of their portion of the pooled investment.
The spokesperson said reporting on the investments would be made public through annual reporting.
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