Ann: Change of Director's Interest - M. Stehr, page-2

You might be asking why, would he transfer shares from on trust to another, right??  Well I've tried this before because you can earn interest up-to $416 and pay no tax but they sought of fixed up the loop-hole.  I've transferred the savings for the kids out of their name, also.  I believe that's what he's doing.

https://www.ato.gov.au/individuals/...8s/your-income-if-you-are-under-18-years-old/

Your income if you are under 18 years old

Special rules apply to income earned by people under 18 years old. Under these rules, certain types of income, such as a distribution for a family trust, may be taxed at a higher rate.
mce-anchor
Income tax rates for people under 18

If you are under 18 years old, some of your income may be taxed at a higher rate than an adult.
However, you pay the same individual income tax rates as an adult for:

• all income you receive if you are an 'excepted person' – this may apply if you have finished full-time study and are working full time, have disabilities, or are entitled to a double orphan pension
• income you receive as 'excepted income' – this includes your employment or business income, Centrelink payments and income from a deceased person's estate.

If you are not an excepted person, you pay a different rate of tax for income that is not excepted income. This rule was introduced to discourage adults from diverting income to their children.

Savings accounts and shares

If your child is under 18 years old and they earn income on their savings account, you may need to consider who declares the interest. If they are under 18 and earn income from shares, you may need to lodge a tax return on their behalf.
Income from a savings account is treated differently to income from shares investments.

https://www.ato.gov.au/Individuals/...n-and-under-18s/Children-s-share-investments/

Children's share investments

If your child is under 18 years, and they buy shares, you may need to consider the following:

• Quoting a tax file number
• Declaring dividends
• Lodging a tax return

Income from shares is treated differently to income from interest.

Quoting a tax file number

When you buy shares, you do not have to quote a tax file number (TFN).
If you quote a TFN, you pay taxes on the dividends when you lodge the tax return. If the shareholder is the:

• child, quote the child's TFN
• parent, as trustee for the child and  
  • no formal trust exists, quote the parent's TFN
  • there is a formal trust, quote the trust's TFN.

If you do not quote a TFN, pay as you go (PAYG) tax will be withheld at 47% (from 1 July 2017) from the unfranked amount of your dividend income.
mce-anchor
mce-anchorDeclaring dividends

Whoever rightfully owns and controls the shares declares the dividends and any net capital loss or gain from the sale of shares. You need to consider who:

• provides the money for the shares
• makes share decisions
• spends the dividend income.

If there are large amounts of money or a regular turnover, you might need to examine the ownership of the shares further, including finding more information to work out who should declare the dividends.
mce-anchor
mce-anchorLodging a tax return

If your child owns shares and earns more than $416, you must lodge a tax return on their behalf.
If your child earns $416 or less, you may also want to:

• lodge a tax return on their behalf if too much PAYG tax was withheld
• claim a refund for franking credit by lodging a tax return or completing an Application for refund of franking credit.

If you do not quote a TFN, pay as you go (PAYG) tax will be withheld at 47% (from 1 July 2017) from the unfranked amount of your dividend income.

It really is a big way of cheating the system.. that's why I tried it in the past also.  You can recognize people will eventually catch on.  I'm very glad they changed the rules!!