Tax File Number (TFN) Declaration: Who Qualifies and What You Get
Learn why you must complete a TFN declaration when starting a new job to ensure you are taxed at the correct rate.
A Tax File Number (TFN) declaration is a formal document you provide to a new employer to ensure your income tax is calculated and withheld correctly from your pay.
Who it's for
This is required for every person starting a new period of employment.
What you get
Completing this form provides the legal framework that allows your employer to withhold the correct amount of tax from your wages. This ensures you do not end up with a large tax debt at the end of the year.
What it costs you
There is no financial cost to completing this declaration, but you must finish it within 28 days of starting your new job.
The catch to know
If you forget to provide your TFN or fail to complete the declaration, your employer is required by law to withhold tax at the highest possible rate from your paycheck.
How to apply
- Locate your Tax File Number.
- Complete the declaration form provided by your new employer.
- Submit the completed form to your employer's payroll department.
For more information, visit the official portal: https://www.ato.gov.au