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Australia Tax File Number Guide

the Australian Tax File Number. The guide covers: the TFN application (the "TFN for the individuals and the businesses") — the TFN is the unique 9-digit number issued by the ATO to identify the taxpayer; the individual can apply for the TFN online through the ATO website (the "online TFN application" for the Australian resident, the "TFN application for the foreign passport holder" for the temporary visitor); the business can apply for the TFN through the "Business Registration Service" (the "ABR service") as part of the "business registration" process (the "TFN for the company, the trust, the partnership, the sole trader"); the processing time is 28 days for the online application; the TFN declaration (the "TFN declaration to the employer") — the employee must provide the TFN declaration (the "Tax file number declaration" — the "NAT 3092" form) to the employer within 14 days of the commencement of the employment; the declaration includes the TFN, the name, the address, the date of birth, the tax-free threshold claim status, the study and training loan status and the residency status; the employer uses the TFN declaration to calculate the PAYG withholding; the employee who does not provide the TFN declaration must pay the PAYG withholding at the highest marginal rate (the "45% plus the Medicare levy" — the "no-TFN withholding rate"); the TFN withholding for the no-TFN and the no-ABN payments (the "47% withholding") — the payer must withhold 47% from the payment if: (a) the recipient does not provide the TFN (for the "employment, the investment income, the superannuation benefits"), (b) the recipient does not provide the ABN (for the "business and the contractor payments"); the 47% rate includes the 45% top marginal rate plus the 2% Medicare levy; the amount withheld is credited against the recipient's tax liability at the year end.

TFN for Investments and Superannuation

  • TFN for the bank accounts and the investments: The financial institution (the "bank", the "credit union", the "fund manager") may request the TFN for the interest-bearing accounts, the dividend-paying shares and the managed fund investments. The taxpayer who provides the TFN avoids the "TFN withholding tax" at the rate of 47% on the investment income. The TFN provision is optional for the bank accounts — the taxpayer who does not provide the TFN is subject to the TFN withholding on the interest income.
  • TFN for the superannuation fund: The superannuation fund member must provide the TFN to the super fund. The member who provides the TFN: (a) allows the fund to accept the "personal after-tax contributions" (the "non-concessional contributions"), (b) allows the fund to accept the "spouse contributions", (c) allows the fund to accept the "government co-contributions", (d) avoids the "additional tax on the concessional contributions" at the rate of 32% (the "top marginal rate of 47% minus the 15% contributions tax rate").
  • Lost super and the TFN: The ATO uses the TFN to identify the "lost super" and the "unclaimed super" balances. The member who provides the TFN to the ATO can consolidate the multiple super accounts through the "ATO online services" (the "myGov" linked to the ATO).

For the superannuation contributions and the tax treatment, see our Superannuation Guide →.

TFN Security and Replacement

  • Lost or stolen TFN: The taxpayer must report the lost or stolen TFN to the ATO immediately. The ATO can issue the new TFN if the identity fraud is confirmed. The taxpayer can check the credit history through the "credit reporting bodies" (the "Equifax", the "Illion", the "Experian") for the suspicious activity.
  • Finding the TFN: The taxpayer can find the TFN on: (a) the "notice of assessment" from the ATO, (b) the "income statement" (the "payment summary" from the employer), (c) the "superannuation statement" from the super fund, (d) the "ATO online services" through the myGov. The ATO can also reissue the TFN notification through the ATO app or the online services.
  • TFN for the deceased: The legal personal representative (the "executor" or the "administrator") of the deceased estate must apply for the new TFN for the "deceased estate" (the "trust TFN") if the estate continues to earn the income after the date of death. The deceased estate has its own TFN separate from the deceased individual's TFN.

For the non-resident TFN obligations and the withholding requirements, see our Non-Resident Taxation Guide →.