A Tax File Number (TFN) is a government-issued number that serves as your unique identifier. This account is associated with your tax returns, benefit payments and superannuation funds. Scammers may perpetrate identity theft and fraud in your name if it is in the hands of the wrong people. It’s preferable if you keep it in a safe place.
To protect yourself, you should never share your TFN with anybody else. As we’ll explain below, in only a few specific cases, is there a need to reveal your TFN.
The Use of a Tax File Number
You need a Taxpayer Identification Number (TFN) as soon as you start working at any employment. Your employer can tax you at a higher rate if you have not provided them with the information they need. Before you start your new work, it’s a good idea to register for one so that you can offer your new employer your TFN on your first day. The Tax File Number Declaration form is used to notify your employer of your TFN. It asks questions about your residence status and other tax-related topics.
If you don’t mark the “Yes” box (to “Do you want to claim the tax-free threshold from the payer?”), you will wind up paying more taxes than you should since you’re entitled to a tax-free sum of $18,200 per year. Remember that you only need to claim this amount from one employer in a given year. If you claim it from many companies, you may end up with a tax bill since you may not have paid enough tax for the year.
There are a few additional circumstances in which you may need to provide your tax file number, such as claiming Family Tax Benefit and other Centrelink benefits. If you need to establish a new bank account or apply for an Australian Business Number, you will also require your TFN.
Application for a Tax File Number
You may apply for a Tax File Number on the myGov website or in person at a post office. Alternatively, you may ask your tax advisor to apply for a TFN for you.
If you apply on your own, there is no fee. You must provide a secure and proper postal address to ensure that the package is sent to you after completing the application.
They will send your tax file number to you within ten days of your application, but it may take around 28 days for the ATO to inform you of your application and for you to receive it.
Ways to Find Your TFN
People lose track of the original letter they received over time. Use your Superannuation statement to locate them. Check with your bank, contact your employer, or check your payslips to see your TFN. Finally, you may contact the ATO or look at the Notice of Assessment from the ATO to get that information.
Lost or Stolen Tax File Number
Contact the ATO immediately if you suspect that your tax file number (TFN) has been stolen or disclosed to someone else. Don’t be a slacker, and don’t simply put things off because it might lead to financial ruin.
To request that you give your TFN through email is never an acceptable practice from a tax professional. They shouldn’t ask you to fax it to them or put down your number somewhere, either. It puts your privacy in danger.
Once your email or the other person’s has been compromised, your TFN can be used to defraud you.
A Tax File Number (TFN) is a one-of-a-kind identification number provided by the Australian government. All your tax-related details and benefit payments are connected to your TFN. Keep in mind its importance and safeguard it properly.
If you need tax consultants or accountants to assist you in organising and completing your tax statements on time, work with SMB Accounting. We provide a comprehensive range of high-quality accounting services, so you won’t have to worry about the time-consuming process. Hurry and get in touch with us now!