A guide on the Tax File Number for business owners

A tax file number is a unique 9 digit number issued by the ATO to a tax paying entity. This entity could be an individual, company, trust, partnership or super fund.​

Here’s an example of a TFN:​

As a business owner, your TFN is used to: ​

To avoid any fines or penalties, make sure you apply for a TFN as soon as possible.​

There are many reasons you need a TFN, so let’s go through the main points:​

In Australia, the most common business structures are sole traders, companies, partnerships, and trusts. The TFN works differently for each of these structures, so be sure to know which rules apply to you.​

If you operate your business through a sole trader structure, your personal TFN is the same for your business. In other words, your business doesn’t need to have a separate TFN as you and your business are not considered separate entities. You’re responsible for reporting all business income and expenses as a part of your individual tax return.​

A company is a separate legal entity from its owner, so you’ll need a separate TFN. The TFN your company uses will track any tax obligations, help employees with their tax, lodge returns, and ensure compliance with the ATO.​

A partnership is a separate legal entity from its owners and needs its own TFN. Each partner uses their own personal TFN for tax purposes, and the partnership itself must also have both an Australian Business Number (ABN) and TFN to identify itself to the ATO.​

The partnership’s TFN is used to collectively track all tax obligations, however the income and expenses of the partnership are split up and reported in each individual partner’s tax return. Every partner is responsible for paying the tax owed on their share of the partnership income. ​

You’re required to acquire a TFN for your trust. In this case, the trust’s TFN is distinct from your personal TFN - regardless of whether you’re a trustee, or a beneficiary. ​

Applying for a business tax file number in Australia is a simple process. ​

If you’re self-employed (such as a freelancer or contractor) or you intend to run your business as a sole trader, you can follow these instructions to apply for a TFN.​

Companies, partnerships and trusts are able to apply for a TFN while applying for an ABN (Australian Business Number). This article on ATO’s website can help with the process. ​

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Go to myGov and select “Australian Taxation Office” under Services and click ‘Find my TFN’. From here you can view your TFN.​

You can also find your TFN on any of the following:​

Your tax agent may also be able to help with this. If you’re still having trouble, contact the ATO.​

The tax file number declaration form is a form used by Australian government agencies to collect individual TFN for tax purposes. ​

If you run a business structure which hires employees, all new employees should complete a tax file number declaration. This allows you, as the business owner, to work out the amount you withhold from payments to employees.​

Business owners must lodge the TFN declaration details with the ATO, unless their employee has completed the employee commencement forms in ATO Online Services.​

You must withhold at the top rate of tax (plus Medicare) from any payment made to an employee who has:​

There are several ways to get a TFN declaration form:​

You should complete a tax file declaration before you start to receive payments from any new payer. This includes:​

If you can’t remember your TFN you look through any physical documents you may have, or look for it in myGov. If you’re really stuck, the ATO can help you out.​

If your TFN has been lost, stolen or you believe someone else has access to it, you should call the ATO’s Client Identity Support Centre immediately - their number is 1800 467 033. They can walk you through the next steps and help make your TFN more secure.​

A tax file number is your personal reference number, and is an imperative part of operating a business. Every business with an ABN must have a tax file number.​

Beany is able to provide support and advice in applying for a TFN - having a personal accountant makes your compliance obligations with the ATO as smooth as possible.​

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world. ​​

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.​