Answer
A Tax File Number (TFN) is a unique identifier issued by the Australian Taxation Office (ATO) to individuals and businesses for tax purposes. It is used to track income, tax payments and superannuation contributions.
Why Do You Need a TFN?
Having a TFN is not legally compulsory, but not providing one can leave you worse off. For example:
- Your employer must withhold tax at the highest rate (currently 47%).
- You may not be able to apply for government benefits such as Centrelink payments.
- Your super fund may deduct extra tax from your contributions.
- You may face delays when lodging your tax return.
How to Apply for a TFN
Applying for a TFN is free and can be done in several ways:
- Online through the ATO website.
- At an Australia Post outlet, by lodging an application with proof of identity.
- By mail, if you are unable to apply in person.
What If an Employee Does Not Provide a TFN?
If an employee does not provide a TFN, the employer must follow certain steps, including withholding tax at the highest rate. For more detail, see our related FAQ: What Do I Do If My Employee Has No Tax File Number?
More Information
For further detail, visit the ATO: Tax File Number page.
