Dom hoses down fears border kids could miss out on cash fund

Dominic Perrottet announced a revolutionary plan to give every NSW child a state-managed savings account — now we know exactly how much it will cost.

Children born in NSW’s border communities will not miss out on government-run savings accounts.

The government moved to hose down fears that families living on the border could miss out if they crossed state lines to have their child, after Premier Dominic Perrottet declared the policy would only apply to children born in NSW.

The Telegraph understands provisions will be made in the policy to ensure any children who are born overseas or in a neighbouring state but who usually live in NSW will be eligible for a cash fund.

Residents in border communities like Tweed, Albury and Queanbeyan frequently give birth in interstate hospitals as they are bigger and closer than regional hospitals.

When asked if a child has to be born in NSW to access Mr Perrottet’s signature election policy, Mr Perrottet said “Yes”.

Nichole Overall is the member for Monaro. Picture: Supplied

Nationals Monaro MP Nichole Overall moved to reassure families in her electorate that their children will be eligible regardless of the Premier’s comments.

“The policy appears not to apply to children born outside — given many in our cross-border community end up birthing in Canberra … can you confirm whether we will be eligible?” one user wrote to Ms Overall on social media.

“As it stands, it appears my three will miss out, despite living in NSW most of their life.”

Ms Overall’s response went against what the Premier said: “Totally understand, as long as you reside in NSW, you are eligible for the Kids Future Fund.”

The same day Mr Perrottet also revealed the ambitious policy will cost $525m for the year 2041 at the height of its cost.

Every child under the age of 10 will have the option of a Treasury-managed savings fund – with a seven per cent interest rate – where a re-elected Coalition will deposit $400 initially and match parent contributions up to $400 every year after that until the child turns 18.

After the first year, the scheme will extend to every newborn if the Coalition secures a win on March 25.

But on Tuesday the Premier revealed taxpayers will be lugged with a half a billion dollar bill only after the state’s unfunded superannuation liabilities are paid off.

NSW Premier Dominic Perrottet’s kids future fund will blow a $525m hole in the state’s budget, it can be revealed. Picture: Flavio Brancaleone

“So the cost of this program is $800 million over four years … at the height of the cost to the budget is $525 million a year, but that’s in 2041 and importantly, that’s at a time when the state’s unfunded superannuation liabilities can fully paid off.”

Mr Perrottet said 2041 will see the biggest number of people in the program.

NSW Premier Dominic Perrottet/ Picture: Jeremy Piper

“These accounts will set up our children (for a) much brighter,” he said.

The revelations come as the government announced students in Year 11 and 12 will be taught financial literacy in an expansion of a program catering to Kindergarten to Year 10 students.

The expanded financial literacy program will help teach children how to use their kids future fund to support their housing and education costs when they turn 18.

If the current government is re-elected, the challenge will be expanded to include students in Years 11 and 12 courtesy of a partnership with Chartered Accountants Australia and New Zealand, and will be updated to teach children how to make the most of their Kids Future Fund account.

Kids in younger years will get taste of the adult world of budget balancing, banking, paying tax, superannuation and investing.

For older students, the suite of curriculum-aligned topics will include cryptocurrency, financial cyber security, business planning, paying wages and tax law.