Understanding Your Tax File Number (TFN)
A Tax File Number (TFN) is a unique identifier issued by the Australian Taxation Office (ATO). It’s essential for lodging tax returns, accessing government benefits, and ensuring you’re taxed correctly on your income.
Why You Need a TFN
Without a TFN:
- Your employer or financial institutions may withhold tax at the highest rate
Who Can Apply for a TFN?
Individuals who can apply for a TFN include:
- Australian residents
- Working holidaymakers
- Foreign residents with an Australian income source.
How to Apply for a TFN
- You can apply online via the ATO's TFN application page
- Applying for a TFN is free and can usually be done in under 30 minutes
- Once submitted, you’ll receive your TFN by mail within 28 days
Documents Required to Apply for a TFN:
- Australian Residents: Provide proof of identity such as a driver’s licencebirth certificate, or passport
- Foreign Residents: Provide visa details and passport information
- Working Holidaymakers: Provide visa details and passport information
FAQs
Q: Can I work without a TFN?
A: Yes, but your employer may withhold tax at the highest rate until you provide your TFN. Apply for one as soon as possible to avoid overpaying tax.
Q: How long does it take to receive my TFN?
A: You should receive your TFN by mail within 28 days of submitting your application.