Home » Tax Education » Answers to your Tax File Number Questions

A tax file number, often referred to as a TFN, is a vital acquisition for backpackers and students who arrive in Australia with intentions of working during their stay. The Australian lifestyle offers plenty of social opportunities but living the high life comes at a cost and too many nights on the tiles can quickly eat into travelling budgets. The tax file number helps visitors to pay less tax faster and there are several questions that regularly arise whenever the subject is discussed.

How Does the Tax System Work for Australian Visitors?

Individuals that come to Australia on student or working holiday visas have to pay tax on all money earned and the current rate for non-residents sits at approximately 29%. When a visitor finds a job, their employer will issue an employee declaration form that has to be completed inside 28 days and returned to the Australian Government. Deductions from your wages will be established by the information you provide.

Must I Pay Tax Right Away?

Yes. If you don’t have a tax file number, you will be placed on emergency tax and the current rate is set at an astronomical 46.5%. Until your tax file number has been established, this means that you will lose nearly half of your income to the Australian Tax Office.

So what exactly do Tax File Numbers do?

Your tax file number makes you clearly identifiable to the Australian Government as a working individual without residential status. With a tax file number in place, you will be removed from the 46.5% emergency rates and charged at the preferential non-resident levels of 29% instead. You can also visit this site for more information. Although this is higher than the rates that Australian residents pay, you will still be able to retain more than 70% of your gross income.

Answers to your Tax File Number Questions

How long does it take to get a Tax File Number?

Even if your application forms for a TFN are submitted as soon as you land in Australia, it can take up to 28 working days for your tax file number to be finalised. Throughout this time, you will continue to pay emergency tax. The longer it takes for your new number to come through, the more money you will lose from your earnings.

Can I Earn a Tax File Number Faster?

Yes. By lodging an application before you leave for Australia, you can arrive here knowing that your registration will commence as soon as you set foot on Australian soil. This gives you time to settle, find work or do a little travelling without having to worry about chasing up the Australian Tax Office yourself. You can also visit this link:http://www.unitedpeoplescreditunion.com/tax-tips-for-rental-properties/ for more information. Usually, your new tax file number will be sent out to you within 7 working days by email.

How do I receive my Number?

Usually, you would need a permanent place of residence before your tax file number can be issued but by using the services of a third-party provider with a registered Tax Office address, you can begin travelling and pick up your confirmed TFN by email in any location where online access is available.

Get your tax file number sooner and pay less tax faster by completing our online form today.

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