Getting your tax file number in Australia might seem stressful. In fact, it’s quite easy. And the Australian tax file number is free. Don’t be fooled by sites offering $30 or $99 tax file numbers, as you can do it online yourself without paying a cent. I have met so many backpackers that have fallen for this trap, so I want to spread the word.
How do i get a tax file number you ask? You simply have all your documentation ready such as passport info and an address in Australia to send your Tax File Number to. Booking a hostel for the first week you arrive will allow you to use this address. (Let us know if you want help doing this and we will recommend you a good place to stay)
Above all Foreign Passport Holders and Temporary Visitors can apply for a tax file number online. Also known as a TNF (we like to shorten everything in Australia.)
Apply for you Tax file number when you arrive
You need to be in Australia to apply for your Tax File Number so don’t bother doing it until you arrive. You will have to have a valid:
Permanent migrant visa
Visa with working rights
Overseas student visa
Visa allowing you to stay in Australia.
It is mandatory to have a Australian tax file number if you want to work in Australia. But If you dont have one, you will be taxed at a higher maximum rate of 47% – (backpackers pay only 15% with their TFN).
Once you have applied for you TFN – print the page or take a photo of it on your phone (save the trees!!). You can use this reference number to give to employers while you wait to receive your number for the ATO. This will be sent to you within 28 days to the postal address indicated in your application.
If you happen to move out of the address you wrote on your application form (this needs to be an australian address FYI) you will be able to get your TFN by calling 132861 (8 am to 6 PM Monday to Friday) – you might be on hold for a little while but will get through. It will normally go to your email address.
You need to also provide your TFN when opening a bank account in Australia. You can still open an account while waiting for your number but need to show them that you have applied for it.
Start the process
Once you click start on the link https://www.ato.gov.au/iar/#beforeStart you will need to put in your passport details. Your name must match the name on your passport or travel document. If you only have one name, enter this in the ‘Family name’ field. All this information is laid out step by step on the site.
You need to make sure you use an Australian Address when filling in that section – using your home address will not work. As said earlier you need to be in Australia already to apply for this number.
Below is the current income tax rate for backpackers in Australia.
|$0 – $45,000||15%|
|$45,001 – $120,000||$6,750 plus 32.5 cents per $1 on income over $45,000|
|$120,001 – $180,000||$31,125 plus 37 cents per $1 on income over $120,000|
|$180,001 and over||$53,325 plus 45 cents per $1 on income over $180,000|
Some backpackers will be asked or choose to use an ABN when working. You need to make sure you keep any tax that you may have to pay to the tax office and the end of the financial year as you will need to pay it when you do your tax return. Australias tax year runs from 01 July to 30 June.
Moreover If you need any help at all please message us on insta @cheapaz.travel or facebook cheapaztravel. Hope this was helpful.