The Complete Guide to Your Tax File Number (TFN)
A Tax File Number (TFN) is your unique personal reference number in the Australian tax and superannuation systems. It's essential for anyone who plans to work, study, or manage their finances in Australia. This guide explains what a TFN is, why you need one, and how to apply for it safely and for free.
What is a Tax File Number (TFN)?
Your TFN is a 9-digit number issued by the Australian Taxation Office (ATO) to individuals and organisations. Think of it as your lifelong financial identity in Australia—you keep the same TFN for your entire life, even if you change your name, jobs, or move interstate.
Key things to know:
- It is free to apply for.
- It is not a form of identification (like a driver's licence).
- You should keep it secure to prevent identity theft.
Why You Need a TFN
Providing your TFN to your employer and other organisations is not strictly mandatory, but there are significant financial disadvantages if you don't.
1. Higher Tax Withholding
If you don't give your TFN to your employer, they are required by law to withhold tax from your pay at the highest marginal rate (47%), plus the Medicare Levy. This is much higher than the usual rates.
2. Lodge Your Tax Return
You need a TFN to lodge your tax return online through myGov or with a tax agent.
3. Access Government Benefits
You need a TFN to apply for any government benefits or payments.
4. Open a Bank Account
While not compulsory, banks will require your TFN to open an interest-bearing account. Without it, they must withhold tax from any interest you earn at the highest rate.
5. Superannuation
You need a TFN so your employer can pay superannuation (super) into your account. It also helps you keep track of your super and prevent lost accounts.
Who Can Apply for a TFN?
- Australian citizens
- Permanent migrants
- Temporary visitors (including working holiday makers and international students)
- Foreign persons who need to report Australian-sourced income
How to Apply for a TFN
The application process depends on your circumstances. It is always free.
1. For Australian Citizens and Permanent Residents:
You can apply for a TFN online through the ATO. The process is quick and your TFN will be mailed to you within 28 days.
Requirements:
- Be at least 15 years old.
- Have an Australian passport or another acceptable proof of identity document (e.g., driver's licence, Medicare card, birth certificate).
2. For Overseas Visitors (Working Holiday Makers, International Students):
You must use the specific online application for foreign passport holders. This is designed for people on temporary visas.
Requirements:
- A valid foreign passport.
- A valid visa for Australia.
3. For Individuals Living Outside Australia:
If you need a TFN but are not currently in Australia (e.g., you earn income from Australian investments), you will need to complete a paper application form, which requires certification of your identity documents.
Protecting Your TFN: Security is Key
Your TFN is sensitive information. You must protect it to avoid identity theft and tax fraud.
- Memorise it: Do not carry your TFN in your wallet or phone.
- Be Selective: Only give your TFN to authorised entities like your employer, your bank, your super fund, or your tax agent.
- Secure Communication: Never send your TFN via email or text message.
- Beware of Scams: The ATO will never contact you via email, SMS, or social media demanding your TFN or threatening immediate arrest. These are scams.
What to Do If You Lose Your TFN
If you have lost or forgotten your TFN, don't apply for a new one. You can only ever have one TFN.
How to find a lost TFN:
- Check your income tax notice of assessment or any correspondence from the ATO.
- Ask your employer or your super fund (they may have it on record).
- Call the ATO's personal tax enquiries line (13 28 61) and answer some security questions to have it confirmed.
- Find it in your ATO online account via myGov.
TFN vs. ABN: What's the Difference?
It's crucial not to confuse a TFN with an ABN (Australian Business Number).
TFN (Tax File Number):
For individuals to manage their personal tax affairs (e.g., as an employee).
ABN (Australian Business Number):
For businesses (including sole traders) to conduct business activities like invoicing.
If you are a sole trader, you will have both a TFN (for your personal tax) and an ABN (for your business dealings).
FAQs About Tax File Numbers
Q: How long does it take to get a TFN?
A: It typically takes up to 28 days for the ATO to process your application and mail your TFN to your nominated address.
Q: Is there a fee to apply for a TFN?
A: No. Applying for a TFN is completely free through the official ATO channels. Be wary of third-party websites that charge a fee—they are unnecessary.
Q: Can I start work without a TFN?
A: Yes, you can. Give your employer a TFN declaration form and state that you have applied for one. You must provide them with the number within 28 days. Until you do, they will withhold tax at the highest rate.
Q: What if my personal details change?
A: You must update your details with the ATO as soon as possible if you change your name, address, or gender. You can do this easily through your myGov account linked to the ATO.
Q: Can a TFN be cancelled?
A: Your TFN is for life. It will not be cancelled, even if you don't use it for a long time.