Your Tax File Number

A Tax File Number (TFN) is a nine digit number provided by the Australian Taxation Office (ATO) that identifies every taxpaying individual for taxation purposes.

Do I need a TFN?

You do not have to provide a Tax File Number (TFN) if you are under 18 and earn less than $6,000 a year or receive certain Centrelink benefits. However, if you earn over $6,000 and do not quote a TFN, your employer must withhold 48.5% for tax from any salary payment – the highest marginal rate, including Medicare levy (currently 1.5%).

If this is more tax than you should have paid, then you can get this money back at the end of the financial year, but do you really want to wait until then? So if you’re earning significant money, or you’re over 18, it makes sense to apply for a TFN. 

How do I get a TFN?

To get a TFN you need to complete an application form, which is available from the Australian Taxation Office (ATO), the ATO web site at www.ato.gov.au, a post office or from a tax agent (a career adviser can help you apply for one, and sometimes an employer may give you the application form). Proof of identity may be required. The ATO then sends you a notice advising you of your TFN. You can only hold one. When you receive your TFN from the Government ensure you keep the papers in a safe place, or give them to your parents or a guardian for safekeeping.

When do I use a TFN?

A TFN should be quoted:

• at the start of a new job
• on your tax return
• on other documents lodged with the ATO
• when discussing your taxation affairs with the ATO
• when opening a bank account or Term Deposit
• when acquiring shares in a public company or units in a managed fund.

You quote your TFN to ensure too much tax is not deducted from your pay.