This guide is for general information purposes only. It does not constitute financial, tax or legal advice.
About Blossom Kids
Blossom Kids allows an individual (Account Holder) to hold units in the Blossom Fund to help save for a nominated child (under 18 years of age) in Australia and New Zealand.
Although the account may include a designation of the minor’s name, or somehow reference the investment as being held for the minor’s benefit, the Account Holder remains the legal owner of the account and the registered unitholder in the Blossom Fund.
The main advantage of Blossom Kids is the simplicity of later switching the investment to the nominated person when they are no longer a minor (and if the product is suitable for them and they agree to the switch).
How the investment is held
Blossom does not recognise whether the investment is held on trust, designated for a child, or otherwise.
This is a matter entirely for the Account Holder. There are various ways people help save for their kids. You should consider seeking your own financial or legal advice.
At the time of establishing the Blossom Kids account, Blossom does not advise on that or collect or assess information about the child or other nominated minor. Blossom does not assess the relationship between the Account Holder and child. The Account Holder could be a parent, guardian, grandparent or have any other connection.
Blossom makes it easier to switch the investment when the time is right.
Blossom investments
Blossom Kids is available for both Blossom Save and Blossom Plus.
The Account Holder must pass the suitability assessment for their chosen investment class. The suitability assessment is only for them. It does not relate to any nominated minor.
Tax responsibility
All income generated from a Blossom Kids account is attributed to the Account Holder. Blossom does not distribute income directly to or for the child, nor does it collect the child’s Tax File Number (TFN) for Australia or Inland Revenue Department Number (IRD number) for New Zealand. As such, the Account Holder is responsible for any tax consequences that arise.
Blossom issues an Attribution Managed investment trust Member Annual Statement (AMMA Statement) to the Account Holder each financial year. This statement reports income, capital gains, and other tax components attributed to the Account Holder for inclusion in their tax return.
Contributions and withdrawals
Funds may be contributed to a Blossom Kids account from a bank account in the name of the Account Holder or the nominated child. The source of the funds does not change the legal ownership or control. While the account may be used to save for the nominated child, the Account Holder retains full legal control and so may withdraw funds to their own bank account.
It is the Account Holder’s choice whether then to transfer withdrawn funds from their own bank account to their child’s bank account.
The source of contributions and the destination of any withdrawals may have tax implications depending on individual circumstances. Account Holders are encouraged to keep appropriate records and seek independent advice.
When the minor turns 18
Units held in a Blossom Kids account may later be switched to an Individual Account in the name of the designated individual, once they are eligible to open an Individual Account (minimum permitted age of 18). This is subject to eligibility (e.g., identity verification), suitability and the switch process in place at that time.
Both the original Account Holder and the new Account Holder must agree at the time of the switch.
It is processed as a redemption of the existing units held by the original Account Holder and a new application for units in the name of the designated individual (now aged 18 or over), funded by the redemption proceeds.
This switch is not a transfer of units between parties. Currently Blossom will not process requests for transfer of the units. Instead, the redemption is used to fund anew investment for the new Account Holder.
This switch will likely have tax consequences for the original Account Holder (as for any other redemption made by them). The specific impact will depend on their individual circumstances Account Holders are encouraged to keep appropriate records and seek independent tax advice.
It is the original Account Holder’s decision when and if to decide to switch. Blossom does not force any switch. They could withdraw their investment before the minor turns 18. The switch could occur any time after the minor turns 18.
If for any reason the nominated minor does not take up the switch, the original Account Holder can withdraw their investment at any time on the usual terms.
Reminder: Seek independent advice
All investors’ circumstances are unique. Blossom does not provide financial, tax or legal advice. Always consider the PDS and TMD for the investment which you are considering. We strongly encourage all Account Holders to consult the Australian Taxation Office (ATO), New Zealand Inland Revenue Department (IRD) or independent legal, financial or tax advisers to understand the implications for them of investing through a Blossom Kids account.
While we don’t provide financial tax or legal advice, if you have questions about how Blossom Kids works, our team is always here to help! Get in touch here.
Document management:
Document owner: BlossomApp Pty Ltd
Approved: Directors (BlossomApp)
Use: GAML compliance BlossomApp
Date updated: 11 July 2025
Location: BlossomApp website
Review: Reviewed periodically
