A tax file number (TFN) is your unique identifier. It is issued by the Australian Taxation Office (ATO) to any individual, company, Superannuation fund, partnership or trust who pays tax.
Your employer will give you a tax declaration form to fill out when you start work. Make sure you include your TFN and so they pay tax to the ATO on your behalf.
Tip: You should apply for a Tax File Number within the first two weeks of landing in Australia or you won’t be able to do it online.
Why do you need a Tax File Number?
It is illegal to work in paid employment without paying income tax. You can still get a job without having a Tax File Number, but tax will be deducted from your income at the maximum rate. This can be claimed back when you submit a tax return, but it is a lot more work. If you don’t supply your TFN within 28 days of starting a new job, you’ll be taxed at 47%.
How to apply for a Tax File Number (TFN)?
You cannot apply for a TFN until you set foot in Australia, so do it as soon as you land!
If you have a foreign passport you do not need to go to the post office for an interview, you just apply online with all of the information you prepared from the below checklist.
Foreign passport holders, permanent migrants, and temporary visitors apply using this TFN Application.
TFN Application Checklist
Checklist of documents to prepare before you apply
- Passport or travel document number
- Country of origin of your passport or travel document (the nationality country on your visa)
- Your names (exactly as they are printed on your passport or travel document) and any other names you are known by
- Date of birth (exactly as printed on your passport or travel document)
- Your spouse details
- Postal addresses (your postal address must be in Australia). This is the address where your TFN is sent to you as a letter.
- Contact details (phone number and email address)
Tip: It can take anywhere between 10-28 days to get your TFN, so make sure if you use a hostel address that you are there to receive your letter.
Postal address options:
It starts to get tricky if you decide to travel before working because you need an address for all of your essentials, such as a bank account, Superannuation and Medicare card. You will also need to supply an address when you apply for a job.
It is important to talk to your hostel, Airbnb or wherever you’re staying about temporarily using their address. It is also important you are staying there for two or more weeks at a time, in case your TFN takes the full 28 days to arrive. Make sure you use my postal method combining forwarding services, electronic statements and physical addresses to cover all your bases.
Tip: If you use a forwarding service make sure you read their reviews and/or even give them a call to see what they are like before sending your TFN number to them.
Using your visa company:
A visa company will provide you with an address when you use them to apply for your TFN. This is usually part of a ‘Work Essential Package’ that lets you pay for the setup of your TFN, Super, and bank account before you leave. Make sure you get your company to apply as soon as you arrive because it can take between 1-28 days to arrive. They should email you the number as soon as they get it.
Next.. TAX
Once you have your TFN, read my step-by-step instructions on how to use it right, keep it safe and what services you need to link it to for your Tax return.
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