Children's share investments

Whose tax file number is quoted when the shares are purchased?

You do not have to quote a tax file number (TFN) when you buy shares. However, if you do not, pay as you go (PAYG) tax will be withheld at 46.5% from the unfranked amount of your dividend income.

There is no PAYG withholding threshold for dividends. The $420 threshold for interest received by a child under 16 does not apply to share investments. If you quote your TFN, you pay taxes on the dividends when you lodge your return.

If the shareholder is the…	quote the TFN of the…
child	child.
parent, as trustee for the child (where there is no formal trust)	parent.
parent as trustee for child (where there is a formal trust)	trust.