paul strongly advocates for the establishment of the Tasmanian Child Endowment Fund. This scheme would seed fund a savings account for every Tasmanian child at birth. The goal would be to narrow the socio-economic wealth gap and offer all children a fair opportunity to build wealth over time.

Administered by the state, each child’s account would grow over time in a tax-free and administrate-fee-free account, and could be topped up via various strategies over 18 years. Maturing upon the young person turning 18, the accumulated funds could help pay for education, housing or life start-up costs.

Based on similar funds operating around the world, the Tasmanian Child Endowment Fund would incorporate some or all of the following features:

• Every child born on or after the commencement date would receive a $3000 government voucher, invested in a tax-free account.
• Low income families (earning less than 100% of the Henderson Poverty Line) would receive a designated top up at birth.
• Resources would be dedicated to ensure no family and no child misses out.
• Government could top up yearly if the State Budget is favorable, with top up contributions decreasing as family income increases- with no additional contributions for families earning 250% above the Henderson Poverty Line. This would ensure top-ups are targeted at low income families.
• Matched dollar for dollar contributions for low income families up to an annual limit could be explored.
• Parents, family and friends can contribute to the child’s fund up to an annual and life time limit.
• The account balances would not be considered when determining eligibility for government benefits.
• The account matures when the child turns 18.
• Money can be used for a tightly tied list of approved uses, with no mechanism to cash out for other spending.
• Any leftover funds can be transferred to account holder’s superannuation fund.

Tasmania consistently records between 5,700 and 6,000 births annually. A $3000 voucher for each of the 6000 newborns would be an annual investment of $18m. Noting that Singapore invests $10,000 at birth for every child.

The benefits of the scheme would include:

• Provides young adults with a nest egg for education, training, housing, business start up or other investments that provide long-term gains.
• Seeks to address socio-economic wealth inequality, break intergenerational poverty, and promote economic mobility.
• Encourages savings habits.

Po: Could local government areas incentivize families to relocate to their region by offering a “top up” to their children’s endowment funds?

Inspired by:

• UK Child Trust Fund (2002-2011).
• Canada’s Education Savings Grant (CESG)
• Singapore’s Child Development Account (CDA)