The TFN is an unique identification number issued by the Australian Tax Office (ATO) for identification and communicating with the ATO.
It is not mandatory to obtain a TFN, however, you may be requested to provide your TFN to your employer, or when opening a bank account.
If you do not provide your TFN, the consequences would include:
This is a tax applied to interest and investment income earned in Australia:
While you have a foreign address, before you arrive in Australia, you will normally be charged a withholding tax of 10% on any interest you earn on your bank accounts.
When you arrive in Australia and have an Australian address (unless you declare that you’re not an Australian tax resident) you’ll normally be charged a withholding tax of the top income tax rate plus Medicare levy and surcharges (currently 49%) if your bank does not have your TFN on record.
If for any reason your TFN is not supplied to your bank when opening account, you can still provide your TFN to your bank at any time and claim the withholding tax you’ve paid through your tax return.
Australian tax residents are required to complete and file income tax return for each income year ending on 30 June, if:
If you’re not a resident of Australia and you’re here temporarily, it’s likely you’ll be taxed as a non-resident, depending on your circumstances.
Generally, you’ll be an Australian resident for tax purposes if any of the following apply:
A non-resident is required to file income tax return for Australian income earned, other than interest and dividends (i.e. you have a rental property or Australian salaries and wages).
The links to non-NAB third parties on this page are provided as information only. NAB cannot confirm the reliability of the information or services provided by these sites.