Tax File Number (TFN)

What is a tax file number(TFN)?

A Tax File Number (TFN) is a nine-digit number assigned to individuals to identify them in the Australian tax and superannuation systems. It is a permanent and unique number that remains the same throughout a person’s life, even if they change jobs, names, or move overseas. The structure of a TFN consists of nine digits in a specific format, such as XXX XXX XXX.

TFN serves as a vital identifier for individuals in financial and administrative matters. TFNs play a crucial role in ensuring accurate tax and superannuation contributions.

See our TFN Withholding Tax article for details of the tax withholding that occurs when an employee or investor has not provided their TFN.

Why do you need a TFN?

Having a TFN is essential for various reasons, including:

Getting a job
When you start working in Australia, your employer will request your TFN for taxation purposes. Your TFN enables your employer to accurately withhold the correct amount of tax from your wages, ensuring compliance with taxation laws.

Applying for government benefits
Having a TFN is mandatory if you wish to access government benefits or allowances, such as JobSeeker. Government agencies require your TFN to determine your eligibility and process benefit payments.

Obtaining an Australian business number (ABN)
If you plan to start your own business in Australia, you must obtain an Australian business number (ABN). To apply for an ABN, you must provide your TFN as part of the application process. The TFN serves as a means to link your personal taxation information to your business activities.

Remember, the TFN is confidential information that should be kept secure and not shared indiscriminately. Disclose your TFN only to authorized entities, such as your employer, bank, superannuation fund, and registered tax agents. Protecting your TFN and personal details is crucial in preventing identity theft or fraud.

How to apply for a TFN

The application process for a Tax File Number (TFN) is free. There are no charges or fees associated with obtaining a TFN. This ensures that everyone has equal access to this essential identifier.

Eligibility Criteria

The eligibility criteria for applying for a TFN are quite broad. Individuals of any age can apply for a TFN. However, the application process may vary based on residency status. Australian residents, foreign passport holders, permanent migrants, and temporary visitors may have different application procedures.

When applying for a TFN, you must provide specific identity documents to prove your identity. The tax authority will ask for documents such as a birth certificate, passport, or driver’s license. These documents are essential to ensure that the TFN is allocated to the correct individual and to maintain the integrity of the tax and superannuation systems.

Once you submit your TFN application and the necessary identity documents, you can expect to receive your TFN within 28 days. 

The Australian Taxation Office (ATO) strives to process applications promptly and will send your TFN to the postal address or email address provided in your application, depending on the chosen method of communication.

Where to find your TFN

If you already have a TFN but cannot recall it, there are several places where you can find it. 

For instance:

• on your income tax notice of assessment. This document is typically issued to tax authorities after you have lodged your tax return and provides a summary of your tax assessment, including your TFN.
• letters you receive from the tax authorities, as your TFN might be mentioned in some correspondence. These letters can contain important information related to your tax obligations, and your TFN may be listed for identification purposes.
• payment summary or income statement offered by your employer. This document outlines the details of your income, taxes withheld, and superannuation contributions, including your TFN for reference.
• your superannuation account statement is another place where you can locate your TFN. Superannuation funds must include your TFN on the statement they provide to you, ensuring that your superannuation contributions are accurately linked to your account.

Additionally, if you use a registered tax agent to handle your tax affairs, you can inquire with them to obtain your TFN. They should have access to your TFN details, as they provide professional tax services on your behalf.

Consequences of not having a TFN

Not having a TFN can result in increased tax withholding from your income. Without a TFN, your employer or financial institution can withhold a higher amount of tax from the payments they make to you. Consequently, your take-home pay is reduced, potentially affecting your financial situation.

In addition, not having a TFN can make you ineligible for various government benefits and allowances. Programs such as JobSeeker and other forms of government assistance typically require a TFN for eligibility purposes.

Another consequence of not having a TFN is the inability to lodge your tax returns online. Online tax lodgment provides convenience and efficiency in fulfilling your tax obligations. However, without a TFN, you must file your tax return through other means, which can be more time-consuming and less efficient.

Furthermore, lacking a TFN means you cannot apply for an Australian business number (ABN). You can face challenges establishing and managing your business’s financial and taxation affairs.

Reporting lost or stolen TFNS

If you suspect your TFN has been lost, stolen, or misused, contact the ATO immediately. Reporting the situation promptly allows the ATO to take appropriate measures to protect your identity and prevent any further unauthorized usage of your TFN.