Think your first paycheque will be a cause for celebration?
It should be.
But if you don’t have a Tax File Number (TFN), you might find yourself celebrating a lot less. Almost half your pay could disappear before it even hits your bank account.
Getting a TFN isn’t just some government formality. It’s a make-or-break detail that directly affects how much money you keep in your pocket. And the longer you delay, the worse it gets.
Let’s break it down.
What Happens When You Don’t Have a TFN
Picture this. You start a new job, clock in your hours, and wait for payday. But when it finally comes, something’s off. You’ve been taxed at the highest rate. That’s a huge chunk of your earnings gone, just like that.
Why does this happen? Without a TFN, your employer has to assume you are not cooperating with the tax system. So they take the maximum amount of tax from your pay. It’s not optional for them. It’s required by law.
Now ask yourself this: Do you want to hand over almost half your earnings for no good reason?
So, What Is a TFN Anyway?
A Tax File Number is a personal identification number issued by the Australian Taxation Office. It follows you for life. Start a new job? Same TFN. Move to a new city? Still the same. Take a year off and travel? Your TFN waits for you.
It connects all your income, tax, and superannuation records. More importantly, it keeps your tax rate fair and ensures your money goes where it should — to you.
“I’ll Fix It Later” Is a Costly Thought
Let’s be real. You can technically claim back the extra tax when you lodge your tax return. But that could be months away. Until then, your weekly pay will stay painfully low. Bills don’t wait. Groceries don’t wait. Why should you?
And that refund you’re banking on? It’s never guaranteed. Mistakes happen, paperwork gets delayed, and not every dollar comes back.
Then there’s the bigger picture. No TFN also means you lose access to government payments like JobSeeker, Youth Allowance, or student support. These aren’t luxuries. These are lifelines when times get tough. And you won’t be able to touch them if you haven’t sorted your TFN.
Planning to Start a Business or Side Hustle?
Selling online? Freelancing? Offering tutoring? To apply for an Australian Business Number (ABN), you need a TFN. No exceptions.
Without it, your big idea stalls before it even starts. You can’t invoice clients, claim business expenses, or register properly. That side income stays stuck in the ‘just a hobby’ phase, and the tax implications get messy fast.
Your superannuation also takes a hit. Without a TFN, your fund might reject your voluntary contributions. Even your employer’s contributions get taxed more heavily. That’s your future retirement money. You work hard for it, so don’t let poor planning shrink it.
The Process Is Free and Simple
Applying for a TFN doesn’t cost a cent. You can do it online through your myGov account if it’s linked to the ATO. Most people receive their number in under a month.
Here’s the thing, though. The earlier you apply, the fewer problems you’ll face. Leave it too late and you’ll spend more time stressing than you should. That first job, that study payment, that business plan — they all move a lot smoother once your TFN is in place.
Keep It Safe, Always
Once you get your TFN, protect it like you would your banking PIN. Only share it with people who absolutely need it, like your employer, bank, or the ATO. Scammers love stealing identities, and your TFN is a golden ticket to your personal information.
Be cautious. Guard it like it’s cash.
Don’t Lose Money for No Reason
So here’s the truth. Not having a TFN doesn’t just slow you down. It actively costs you money, limits your options, and complicates your life. Applying takes less than an hour. Not applying could cost you hundreds, if not more.
Think about where you want to be in six months. Are you still waiting on tax refunds and missing out on benefits? Or are you in control, earning freely, and planning ahead?
You know what to do. Don’t wait. Get your TFN sorted today.
Still unsure or need help with the process? Reach out to a trusted accountant or tax advisor who can walk you through it. The sooner you act, the better off you’ll be.
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