Definition
A Tax File Number (TFN) is a unique nine‑digit identifier issued by the Australian Taxation Office (ATO) to individuals and entities for the purpose of administering tax and related government services.
Overview
The TFN is used to track an individual's or organization's tax obligations and entitlements, including income tax withholding, superannuation contributions, and government benefits. It is required for employment, lodging tax returns, applying for certain government allowances, and for financial institutions when reporting interest or dividends. The number is confidential and is protected under Australian privacy legislation; it must not be disclosed publicly without consent.
Etymology/Origin
The term “Tax File Number” derives from its function as a file reference for tax records. The ATO introduced the TFN system in 1993 to replace the previous tax reference numbers and to streamline tax administration.
Characteristics
- Format: Nine digits, e.g., 123 456 789, without any letters or special characters.
- Issuance: Allocated by the ATO to Australian residents, temporary residents, and some non‑resident entities that have Australian tax obligations. Applications can be made online, by post, or through authorized agents.
- Usage: Required for:
- Employment (to ensure correct PAYG withholding).
- Lodging individual tax returns.
- Superannuation fund contributions.
- Certain government benefits and rebates (e.g., Family Tax Benefit).
- Financial transactions where the ATO must be notified of income, such as interest, dividends, and capital gains.
- Privacy: The TFN is protected under the Privacy Act 1988 and the Taxation Administration Act 1953. Unauthorized disclosure can result in penalties.
- Validity: The number remains the same throughout a person’s life; it does not change on relocation, name change, or marital status change.
Related Topics
- Australian Taxation Office (ATO)
- PAYG (Pay As You Go) withholding system
- Superannuation (Australian retirement savings)
- Australian Business Number (ABN)
- Privacy Act 1988 (Australia)
- Taxation Administration Act 1953
This entry reflects information available from official Australian government publications and reputable secondary sources.