Friday, January 28, 2011

A person's a person, no matter how small.

Dr Seuss...again!

Our little person is fast approaching the second anniversary of her birth.  Turning two is a significant milestone on many fronts…
  • She is no longer an infant and now requires her own seat on a plane
  • She has enough teeth in her head to warrant an introduction to a dentist
  • She has her own passport, bank account and tax file number
Yes, that’s right…a tax file number!

Clearly the Secretary to the Treasury, Dr Ken Henry missed something in his 2010 Australian tax review.

The Big Four, to which they are affectionately referred, all keenly market ‘fee free’ bank accounts for children.  They blatantly encourage the upcoming generation to save and budget, all the while conning their parents, in the hope that one day these kids will turn into adults looking for hefty mortgages.

As parents, we wanted to secure the short one’s educational future by establishing our own fund by opening one of these ‘fee free’, high interest bank accounts for children.  Into this account we deposited the ‘baby bonus’ and have continued to feather the nest egg with weekly deposits.

Until…the short one was hit with a hefty tax bill…directly swiped out of the account! No warning, no explanation, no way!

Upon further investigations, we have discovered this tax will continue to be debited from the account each and every month until we provide the bank with a tax file number. The bank personnel were less than interested in the fact that their recalcitrant TFN-withholding customer was less than two years old!  We were told in no uncertain terms…no TFN…no tax-free threshold!

So…back to where we started…the short one will very soon be the proud owner of her very own TFN, alongside her own passport, library card, medicare card, bank card…

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