Evertying you need to know for a successful TFN registration in Australia
Will all the business registration needs required by law, people often get confused on what they need to get registered. One of these requirements is the TFN, or the Australian Tax File Number. Find out everything you need to know about these identifier.
What is a TFN?
A tax file number (TFN) is a special 8 to 9 digit number issued by the Australian Taxation Office (ATO), to identify your small business in Australia for tax purposes.
What is a TFN for?
As someone once said, the only certain things in life are death and taxes. Taxes being an integral part of the financial system of the country, the government established a unique number to better identify any person or company in the tax and super systems.
Why should I issue a TFN?
When you file your tax returns at the end of the financial year, the ATO can check your quoted income against records from the originators of that income, such as banks, employers, and public companies.
Can I issue more than 1 TFN?
When the ATO issues an individual a TFN it’s his/hers for life, and even if they change their name or move interstate or overseas, they will always have the same TFN. If an individual has a company, he/she will be granted another TFN for the company.
Is TFN registration mandatory?
No. As an individual, you don’t have to have a TFN, but without one you pay more tax. You also won’t be able to apply for government benefits, lodge your tax return electronically or get an Australian business number (ABN).
A company’s TFN registration is mandatory.
How can I apply for a TFN?
If you are an individual or want to register your business you can find online offices that can help you register your company’s TFN.
- If you are an individual and want to register your business, you can find online offices that can help you register your company’s TFN.
- If you run a partnership, company or trust, your business will need its own TFN. A TFN can be obtained at the same time as an Australian Business Number (ABN).
- If you are a sole trader, you can use your individual TFN when paying your taxes.
- If you are a non-resident from Australia and receive interest, dividends or royalty payments from an Australian source you don’t need a TFN. If you receive any kind of income other than interest, dividend or royalty, you will need TFN.