Tax File Number application in Australia

Are you embarking on your journey into the great Australian workforce? Do you wish to be paid legally? Would you like some form of superannuation so you can rest your bones with confidence come retirement?

Excellent choice – in that case, you’ll need yourself a Tax File Number.

In this guide, we’ll delve into why having a TFN is crucial and walk you through the step-by-step process of applying for one.

Why You Need a Tax File Number (TFN)

Obtaining a Tax File Number is virtually nonnegotiable – you’re going to need one.

Unless, of course, you plan to eke out a living as an incredibly hardy and resourceful hermit, foraging for meals and engaging solely in cash jobs.
Didn’t think so, so let’s get down to the nuts and bolts. First up, why exactly do you need one?

Legality and compliance

This is the heart of it. Your Tax File Number is a unique identifier issued by the Australian Taxation Office and is essential for anyone earning income in Australia.

It’s no mere bureaucratic formality either – it’s a straight up legal requirement. Whether you’re working as an employee, starting your own business, or earning investment income, having a TFN ensures that you comply with Australian tax laws.

You’re going to want to do that.

Taxation and financial management

Upon receipt, your Tax File Number will be directly linked to your tax records. Without it, you may be subject to higher tax rates, and your employer or payer may be obligated to withhold more tax from your earnings.

Having a Tax File Number ensures that you can file your tax returns accurately and efficiently – good luck trying without one.
Perhaps, more poignantly, you won’t be legally employable at all.

For this reason, most Aussies will obtain their Tax File Number when they apply for their very first job.
As an employer, you should absolutely be asking for one from your new hires, unless you enjoy operating outside of the law. Let’s not do that.

It gets you access to Medicare

Furthermore, having a Tax File Number enables you to access entirely excellent government benefits and services, such as Medicare. Without it, you’re up the creek without a paddle.

Employment and superannuation

Pretty much every reputable employer in Australia require a Tax File Number from their employees. Without it, you may face delays in receiving your salary or encounter administrative hurdles. Additionally, your Tax File Number is crucial for managing your superannuation. Don’t mess around with your nest egg.

Your Tax File Number allows your employer, or yourself as a self employed business owner, to make contributions to your super fund and ensures that you receive the full benefits.

How to apply for a TFN

Now that you understand the genuine and pervasive importance of having a Tax File Number, let’s explore how you can obtain one:

Eligibility

Are you eligible? Most likely, yes.

You can apply for a Tax File Number if you’re am Australian resident for tax purposes. That’s all you need.

Generally, this includes Australian citizens, permanent residents, and certain temporary residents. If you’re unsure about your residency status, the ATO provides guidelines on their website to help you out.

Prepare your identity documents

Papers please!

Before applying for your Tax File Number, make sure you have the necessary identity documents on hand. You’ll typically need:
• Proof of identity (Australian passport, birth certificate, or driver’s license)
• Proof of Australian residency (Australian residents, visa or citizenship certificate)
• Contact details (address and phone number)

It’s easy to apply online or by post

The most convenient way to apply for a Tax File Number is certainly through the Australian Taxation Office’s website. It’s a no brainer.

The online TFN application process is exceptionally straightforward and can be completed in a matter of minutes. Anyone can do it without undue exertion.

Alternatively, you can download the Tax File Number form, fill it out, and mail it to the address provided on the form through a participating post office.
But seriously, just jump on the website. It’s the 21st century.

Processing period

Tick tock. Once you’ve submitted your application, the ATO will process it and send your Tax File Number to the mailing address or email you provided. This typically takes around 10 to 28 days, depending on the method you chose to apply.

When you’re done, they’ll send you an application summary and your unique TFN.

Keep your Tax File Number secure

Your TFN is sensitive information, so it’s crucial to keep it secure. Avoid sharing it unnecessarily and only provide it to trusted parties, such as your employer, financial institution, or tax agent.

There are nefarious agents out there.

Your Australian business number vs TFN

When you’re an employee, or self employed, you’ll certainly need a Tax File Number. When you run a business, you’ll also require an Australian Business Number (ABN). This is processed by business.gov.

So, just make sure yourself and any employees remain inside the chalk lines, less the weight of the law comes to bear on you!