Give your kids & grandkids a financial head start for life

Golden Goose Gifting

It’s an easy way to regularly gift small amounts to a child’s superannuation account.

Mike talks about his grandkids and Golden Goose Gifting

What are the benefits of Golden Goose Gifting?

There are four key benefits that make Golden Goose Gifting an attractive way to help:
  1. 1The money is secure in a super account – the child won't be tempted to prematurely access the funds.
  2. 2The money is professionally managed.
  3. 3Super is a concessionally taxed investment method.
  4. 4Golden Goose Gifting harnesses the power of long-term compound interest to have a potentially life-changing impact.

The amazing power of compound interest and Golden Goose Gifting

Example: If you...
gifted $40 per month
for 20 years then stopped
at a rate of return of 6.8%
...your gift of $9,600 could grow to:
Inflation has not been taken into account.
Click here for more information on how we work this out.

Our CEO Andrew, talks about the origins of Golden Goose Gifting

How much does it cost?

One of the great advantages of gifting to a child’s super fund is the cost-effectiveness.
There is no fee to gift to the child’s super account. The only fees that apply are the normal fees for the super fund account;
  • There are zero fees for balances under $1,000.
  • Balances between $1,000 and $5,000 receive a 50% discount to the weekly admin fee.
  • Once the balance grows above $5,000, our main fees are a weekly admin fee of $1.50 per week and 0.99% of the account balance p.a.

Compared to...

Compared to other intergenerational wealth transfer methods, such as setting up a family trust (which has annual tax returns and annual accountants fees), using super is a very low-cost alternative.
For more information about our fees, click here.

How to get started

Setting up an account is easy.
  1. 1Open an account for the child, and add yourself as a gifter to their account. Start here
  2. 2Apply for a Tax File Number (TFN) for the child and add it to their account (even babies can get a TFN).
  3. 3Transfer to their new account via BPAY, or recurring BPAYs – we’ll send you all the details. You can set up recurring transfers, and can stop and start at any time.

Gifting to super vs a bank account

Opening a child’s superannuation account has many benefits that a normal savings account doesn’t:
  • A bank account in the child’s name may require the child to do a tax return each year depending on the amount of interest earned (ATO child tax under 18’s).
  • A bank account in your name but for the child, could mean any interest is taxed at your marginal rate.
  • Traditionally returns earned from bank accounts are less volatile than super funds, which are professionally invested in a range of asset classes. However, bank accounts could also provide a lower return.
  • A super fund in the child’s name does not require the child to do a tax return. Also, the investment return in the super account is taxed concessionally, compared to earnings outside super.
  • With a super account, the child won’t be tempted to prematurely access the funds. This maximises the time your gift is compounding, allowing your gift to grow into a potentially life-changing amount.

Who is Student Super?

Student Super is an APRA regulated super fund that specialises in superannuation for young Australians.
Typically our members are high school and university students. The fund has been built around their specific needs.

When they graduate

The brand changes name to “Professional Super” (professionalsuper.com.au). The fund stays the same, but the Professional Super website has educational resources that are designed for young adults in the work place - like using super to save tax effectively for a first home!

An additional advantage of Golden Goose Gifting

As the child becomes a teen and starts their first job, they will already be set up with a super fund that can help them learn about super and get organised for their first job.

Student Super accounts are professionally managed

All Student Super accounts are professionally managed. Members’ money is invested in Macquarie funds and Westpac cash management accounts.
The super fund is regulated by APRA and under the stewardship of an independent trustee (Sargon) and Custodian (Australian Executor Trustees).

Our delivery partners

Investment strategy

Student Super primarily uses a diversified, low-cost index investment strategy.
The investment options change as the account balance grows. Balances under $1,500 are invested in the cash option, protected from market volatility. Balances between $1,500-$4,999 are invested in our Growth investment option. Balances above $5,000 can choose between three options managed by Macquarie; Balanced, Growth or High Growth.

Got a question?

What is Golden Goose Gifting?
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How does it work?
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How much can you contribute?
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What does this mean for my tax?
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How does the ATO treat gifts to super?
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My parents want to gift to my kid's account – how do I accept their gift?
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How do I add, change or cancel gifting amounts?
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How can I check if my child has recieved their gifts?
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Are there minimum commitments?
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More questions – we're here to help

I’m Despina from the Member Services Team at Student Super. My team can answer any questions about Golden Goose Gifting. Give our team a call on 1300 646 960 or chat with us online.

Be part of the growing community of Australians setting up their kid's future.

HOW WE WORK OUT THE “COMPOUND INTEREST GRAPH”
Assumptions
The graph above is based on future projections and is illustrative of the effects of compound interest. The projection assumes continuous contributions of $40 per month for 20 years with no breaks. The rate of return is 6.8% which is based on the 10 year return for Growth funds per Chant West, as at 31 July 2018. Investment earnings are added monthly. Student Super invests balances under $1,500 in the cash option, and balances above $1,500 in the Growth investment option. Performance is net of tax and investment earnings are added monthly. Fees are deducted before investment earnings and are deducted monthly. Balances below $1,000 are charged zero fees, balances between $1,000 and $4,999 are charged $39 p.a. and 0.99% of the account balance and balances above $5,000 are charged $78 p.a. and 0.99% of the account balance. See our fees page or the Student Super PDS for more information. Investment returns in the projection are taken to be consistent and are not reflective of Student Super’s investment performance or future investment performance. Inflation has not been taken into consideration.