Everything you need to know about the Australian Tax File Number (TFN)

Chapter 2 of 4

1. Do I really need to apply for a TFN?

Anyone earning money in Australia must have a TFN, the unique identifier issued by the Australian Taxation Office (ATO) to each taxpaying entity. Unless you only plan to work as a volunteer during your WHV, you’ll be considered a tax paying entity.

There are two incentives for you to apply for your TFN as soon as possible. First, getting a TFN is free and easy—the process is detailed in this guide. But most importantly, you pay more tax if you don’t have a TFN. In Australia, income tax is withheld from your salary or wages and the tax rate depends on your status. If you don’t provide your employer with your TFN, they must withhold 45% of any payment made to you. Ouch.

Besides, most employers are reluctant to hire a worker who doesn’t have a TFN or doesn’t want to apply for one. It could mean that you want to be paid under the table because you’re not legally allowed to work in Australia.

In turn, it can be a red flag if your employer doesn’t ask for your TFN… do they expect you to work off the books? Just a quick reminder that doing so is probably a terrible idea—not only will it be challenging to enforce your rights as a worker but it could risk your status when applying for future WHVs. For example, if the job would have qualified as “specified work” for a second WHV application, you wouldn’t be able to count any of the days you worked without following the rules.

So, yes, you must get a TFN and make sure you find a legit employer.

2. When should I apply for my TFN?

It’s best to apply for your TFN as soon as you arrive in Australia, even if you’re not planning to work right away. It can take up to 28 days for your TFN to be posted to you.

Note that you have to be in Australia to apply for your TFN. Your WHV must have been activated first.

Found a job faster than you planned and don’t have a TFN yet? Legally, you have 28 days to provide a completed TFN declaration to your employer to avoid the 45% tax rate.

If you delay the application and get taxed at 45%, you may be able to get some of your money back at the end of the fiscal year when you lodge your tax return.

3. What’s the tax rate for travellers with a WHV?

The working holiday makers tax rate is different from the tax rate for Australian residents. Check the current rates here:

Income range (earned during the fiscal year – i.e. July 1 to June 30)	Tax rate
0 – $45000	15c for each $1
$45001 to $120000	$6750 plus 30c for each $1 over $45000
$120001 to $180000	$33750 plus 37c for each $1 over $135000
$180001+	$54100 plus 45c for each $1 over $190000

Example: You’re in Australia from July 3, 2024, to June 27, 2025. You make a total of $47,000. The tax rate applied for the first $45,000 is 15c per $1, so you owe the ATO $6,750. Then for the last $2,000 of your income earned, the tax rate is 30c for each $1 over $45,000, so you owe the ATO an additional $600. During your year in Australia, you will pay $7,350 in tax in total.

However, to get the working holiday maker tax rate of 15%, your employer must be registered with the ATO as an “employer of working holiday makers.” If not, the tax rate for “foreign residents” will be applied. This is 30c for each $1 on earnings between 0 – $135,000.

Registration with the ATO is free for employers—in fact, penalties apply for employers who don’t withhold tax at the working holiday maker rate.

4. I’m starting a second or third WHV. Do I need a new TFN?

The TFN issued is your identifier for life for everything related to taxes, so you don’t need to apply for a new TFN.

If you don’t remember your TFN when you start your second or third WHV in Australia, no worries—there are different ways to locate it. First, check your old pay slips, tax return and super documents. Your TFN should be on any of these documents. Otherwise, give the ATO a call at 13 28 61 (8 am to 6 pm, Monday to Friday). Remember it’s best to call when in Australia, otherwise international charges can apply.

The ATO will need to establish your identity, so have your passport (including any former passports used during your first WHV to Australia) and visa documents handy.

5. Where can I get more info about the TFN?

The ATO provides up-to-date info on the TFN and tax-related matters:

• Foreign passport holders, permanent migrants and temporary visitors – TFN application
• Online TFN registration – permanent migrants and temporary visitors
• Working holiday makers (an intro to the tax system and your duties when you work in Australia)
• Employer registration for working holiday makers (info to share with your employer if they are not yet registered as an “employer of working holiday makers”)