What Is a TFN and Why Do You Need One?
Navigate essential Australian financial and administrative systems. Understand this key identifier, its importance, and how to manage it securely.
A Tax File Number (TFN) is a unique nine-digit identifier issued by the Australian Taxation Office (ATO) to individuals and entities for taxation and superannuation purposes. This number is fundamental for engaging with Australia’s financial systems. It serves as a personal reference number within Australia’s tax and superannuation frameworks, streamlining interactions with government agencies and financial institutions.
Understanding Your TFN
Your TFN is a permanent number assigned to you for life. It remains unchanged even if your name changes, you move within Australia, or you relocate overseas. Its primary purpose is to identify individuals for tax and superannuation accounts, helping the ATO accurately record and track your tax-related transactions and ensuring the integrity and security of the taxation system.
When a TFN is Required
Providing your TFN is necessary in several specific situations to ensure proper tax treatment and access to various services. Failing to provide a TFN in these scenarios can lead to higher tax deductions, potentially at the maximum rate, and may delay the processing of government payments or access to services.
Starting a new job (for income tax withholding).
Lodging an income tax return with the ATO.
Applying for government benefits or payments (e.g., from Services Australia/Centrelink).
Opening a bank account or making investments (to avoid higher withholding tax rates).
Enrolling in higher education and applying for HECS-HELP or FEE-HELP loans.
Dealing with superannuation funds (receiving contributions and managing your account).
How to Obtain a TFN
For Australian Residents
Australian residents can apply for a TFN at any age, and the application is free.
The fastest method for those aged 15 or older with an Australian passport is to apply online through myGovID, which involves setting up an account and verifying your identity.
Alternatively, apply at a participating Australia Post outlet by completing an online form, printing the summary, and attending an interview within 30 days. Bring your application summary and original proof of identity documents, such as a birth certificate, passport, or driver’s license, to the interview for verification.
Centrelink customers can apply in person at a Services Australia centre by completing a paper form and providing original identity documents.
For those unable to use other methods, applying by post involves ordering a paper form, completing it, and mailing it with certified copies of your identity documents.
Regardless of the method, you generally receive your TFN by mail within 28 days after the ATO receives your completed application and required identity documents.
For Foreign Passport Holders or Temporary Visitors
Foreign passport holders, permanent migrants, and temporary visitors in Australia with a valid work rights visa can apply for a TFN online using the Individual Auto Registration (IAR) system. This online application typically takes about 20 minutes. You will need to provide personal details, including your passport or travel document number, country of origin, names as they appear on your passport, date of birth, and an Australian postal address. The system checks your details with the Department of Home Affairs. If you do not have a valid work rights visa or cannot use the IAR system, you may need to use the paper TFN application form for individuals living outside Australia (NAT 2628), which is detailed in the next section.
For People Living Outside Australia
Individuals living outside Australia who earn income from an Australian source may need to apply for a TFN. For foreign residents for tax purposes, the application process requires completing a paper form: “Tax file number – application or enquiry for individuals living outside Australia” (NAT 2628). This form can be downloaded from the ATO website or requested by phone. Once completed, mail the form along with certified copies of original proof of identity documents to the address specified. Send certified copies rather than original documents, as originals may not be returned.
Using and Protecting Your TFN
Once obtained, your TFN should be provided to authorized entities such as your employer, bank, financial institutions, superannuation fund, and the ATO when required. For example, employers need your TFN to correctly process your income and tax withholdings. Financial institutions also request it to apply the correct tax rate to interest earned on bank accounts or investments, preventing higher withholding taxes.
Be cautious about when and to whom you provide your TFN. Never provide it as general identification or to unverified callers, emails, or text messages. The ATO will not ask for sensitive details like your TFN through unsolicited communications.
Safeguarding your TFN is important to prevent identity theft and fraud. Keep documentation containing your TFN secure, either physically locked away or digitally encrypted. Regularly monitor your financial and superannuation accounts for any unusual or unauthorized activity. If you suspect your TFN has been compromised, contact the Australian Taxation Office immediately by calling their Client Identity Support Centre to report the issue and seek guidance.