Every child in NSW will gain a financial head-start under a life-changing Liberal plan to futureproof the finances of generations to come, giving them the best start to life.
This is the most significant financial security investment in NSW history.
Under a re-elected Perrottet Liberal Government, every child in Drummoyne aged 10 and under – and continuing each year with every newborn child – will be eligible for a Kids Future Fund account, which will receive a $400 starting payment from the Government.
Parents and grandparents will be able to contribute to the fund each year, with payments matched by the Government up to $400 per year, with interest also earned over time.
Once the child turns 18 they will be able to withdraw from their fund – which could be worth between $28,000 and $49,000 per child – for education and housing so they can begin to secure their own financial future.
Liberal candidate for Drummoyne, Stephanie Di Pasqua, said this landmark initiative is the first of its kind in Australia and will help provide financial security to an entire generation in Drummoyne.
“This investment will change the lives of children in Drummoyne and across NSW forever” Ms Di Pasqua said.
“It will give generations to come the financial foundation for the rest of their life.”
“By making small investments over time, we will be able to grow the wealth of an entire generation in Drummoyne so they can secure their financial future with education and housing.
“This is a way for families and Government to work together to invest in our next generation.”
“We know that grandparents want the best start in life for their grandchildren.”
“For some kids in Drummoyne, there could be up to six adults contributing to a child’s account, making small investments over time” Ms Di Pasqua said.
The Kids Future Fund:
- Each account will receive an initial $400 contribution provided by the Government when it is created.
- Each year, the child’s parents (or grandparents) will be able to contribute up to $1,000 per year to the account. The Government will match these contributions up to $400 per year until the child turns 18.
- If parents (or grandparents) make a contribution of $400 each year, alongside the Government’s co-contribution, the fund is expected to be around $28,500 by the time the child turns 18.
- If parents (or grandparents) contribute the maximum amount of $1,000 per year, the fund is expected to be around $49,000.
- For families receiving Commonwealth Family Tax Benefit A, the Government will automatically contribute $200 a year to the child’s account without requiring a matched contribution from parents (or grandparents).
- If the parents (or grandparents) also contribute $200 each year, the Government will match this with an additional $200.
- Contributions can be made to the fund after the child turns 18, however the Government will not provide any further matched contributions.
- When the child turns 18 they will be able to draw down on the fund for only two purposes:
- Housing – e.g. a contribution towards purchasing a residential property
- Education – e.g. textbooks and other learning materials, laptops, private tuition fees, micro-credentials, tools required for getting a qualification
- The fund will be open for children aged up to 10 years old (in the 2023 calendar year). From 2024, new accounts will only be created for newborns.
- There are around 974,000 babies and children aged up to 10 years old in NSW in 2023.
- There are around 100,000 babies born in NSW each year.