A tax file number (TFN) is a unique identifier issued by the Australian Taxation Office (ATO) to individuals and entities for tax and superannuation purposes. It is used to manage tax records and information, and is important for lodging tax returns, starting jobs, and accessing government benefits or loans. The TFN is a nine-digit number specific to each taxpayer and is strictly protected by law for authorized tax-related uses only. Key points about TFNs include:
- Individuals, businesses, superannuation funds, partnerships, and trusts can have a TFN.
- If operating a business as a sole trader, one can use their individual TFN; other business types need a separate TFN.
- It is not compulsory but highly recommended to have a TFN as it facilitates tax processing and reduces withholding tax rates.
- The TFN is issued by the ATO, usually within about a month of application and proof of identity.
- TFNs are often used similarly to social security or national insurance numbers but are protected from widespread use.
- Applications can be made online, through participating post offices, or in coordination with government benefits applications.
The TFN should be kept secure and only shared with authorized parties such as employers, banks, or the ATO. If stolen or misused, steps should be taken to report the issue to the ATO for protection.
