What is a Tax File Number and Do I Need One?

Everything you need to know about Tax File Numbers 💲 

You might have heard about a Tax File Number (TFN), but do you know what it is, how it works and why you need one?  

In Australia we pay taxes and this money goes towards our health system, education and community facilities (think like roads, local parks, welfare and more).  

But if you’re not sure how they work, we are here to explain what it is, why you need one, how to apply for one and how to access it. 

What is a Tax File Number? 

A TFN is your personal reference number in the Australian tax and superannuation system. 

Think of it like a student number, but for the Australian Tax Office (ATO).  

It helps keep track of your income and the tax you pay. 

Do I need a TFN and if so, why? 

You will need to apply for a TFN once you start making money, whether this is a casual job, part-time, full-time or even a side hustle. 

You also need a TFN to apply for government benefits and/or allowances, online tax returns and ABN applications. 

Without a TFN, your employer will withhold more tax from the payments they make you (salary, wages etc). They’ll also take tax from your pay at the highest rate – aka they will take a lot of money from your pay check so it’s worth getting your TFN before you start working. 

How do I apply for a TFN? 

Applying for a TFN is free and is yours for life, even if you change jobs, move or even change your name. 

You can apply for a TFN at any age, but you must be 15 years or older and have an Australian passport if you want to apply online through the myID app. 

Otherwise, you will have to apply at either Australia post, at a services Australia centre, or by post using the paper form. If you are applying through via a manual method (aka going to the post office), you will need to have printed copies of your proof of identity (ID) with the same address you have listed on your application. 

Head to the ATO website for more information on how to apply for a TFN.  

And don’t forget: it can take 28 days to process your application so make sure you do this early if you’re waiting to start a job! 

Do I need a TFN as an International student? 

If you are an international student planning to work in Australia and/or receive government benefits, you will need a TFN. 

For international students planning to work in Australia, you will have to apply through the paper form. And you should also check if you have permission to work in Australia. 

Where to find your TFN. 

Once you have applied for your TFN, you will receive it as a letter to your selected postal address within 28 days of applying. We would recommend you keep this letter somewhere you’ll remember. 

You can also find your TFN in the ATO app.  

Once you have a TFN make sure whenever you start working you fill out a tax file number declaration. This tells the government how much tax they should be taking off you.  

 

If you’re in the process of getting your TFN, then congratulations! This is one of the first steps to life as an adult 🎉 

For more information on Tax File Numbers, head to the ATO website. 

This article does not constitute personal financial advice. Before acting on any information in this article, you should consider your money goals and financial situation to ensure it’s appropriate to you.