When it comes to taxes, there are a lot of things to take into account. Whether you’re an employee, a business owner, a land owner or a tenant, there will always be tax-related matters to deal with. One of these is your income tax. Another one is your tax file number (TFN).
In this article, let’s get to know more about the tax file number:
Every Australian has a Tax File Number, which is a nine-digit number that serves as your identifier throughout your life for taxation purposes, so you have to protect it. If you change your name, move to a different state, change a job or go overseas and return to Australia, you will need your Tax File Number. You will also need your TFN to make transactions with the Australian Taxation Office as well as with other government agencies.
Specifically, you will need your TFN to perform these government-related transactions:
- lodge a tax return
- fill out a Tax File Number Declaration
- start work or change a job – if you’re working and do not have a TFN, your employer will take 49 percent of your salary in tax.
- apply for HECS-HELP
- if you’re a sole trader – apply for an Australian Business Number (ABN)
- apply for income assistance or support payments
- claim the Family Tax Benefit (FTB)
- make or receive payments under PAYG withholding
Tax File Number Application
You can apply for your TFN at over 460 retail outlets of Australia Post. You can likewise do it online. Just fill out an online form and bring a copy of the application summary together with proof of identity documents at any participating Australia Post outlet. Make sure to do this within 30 days of printing the application summary. Parents or guardians can apply for the TFNs of their kids.
A Tax File Number application can also be done at the Australian Taxation Office. Just get a copy of the form online or call the ATO. If you’re applying for a pension or a government benefit, you can get a form from the Department of Veterans’ Affairs or at Centrelink. The ATO will then send your TFB to the postal address that you’ve indicated in your application form. You can expect this within 28 days after the interview.
Do you have other ideas when it comes to income tax and your tax file number? Share your insights in the comments section.Read More →