If you are moving to Australia, one of the first things you will need to sort out is your Tax File Number (TFN). A TFN is a unique number issued by the Australian Taxation Office (ATO) that identifies you for tax purposes. It’s essential if you plan to work, open a bank account, or lodge a tax return in Australia. Applying for a TFN is free and easy and the sooner you apply, the better.
TFN for Different Visa Types: What You Need to Know
The TFN application process varies depending on your visa category. Here’s a quick overview:
For International Students (Subclass 500): You must use the Individual Auto Registration (IAR) system online being foreign passport holder. Apply as soon as you arrive in Australia, even before finding your first job. You can work up to 48 hours per fortnight during semester and unlimited hours during breaks.
For Working Holiday Makers (Subclass 417/462): Apply immediately upon arrival using the IAR online system. Without a TFN within 28 days of starting work, you will be taxed at 47% (the maximum rate).
Note: Working holiday makers are subject to different tax rates starting from the first dollar earned.
For Skilled Workers (Subclass 482, 186, 189): Apply online using IAR as soon as you arrive. If you are on a sponsored visa, your employer will need your TFN immediately. Processing takes up to 28 days, so apply early to avoid delays in starting work.
For Partner Visa Holders (Subclass 820/801, 309/100): If your visa includes work rights, you can apply online using the IAR system. Check your visa conditions on VEVO (Visa Entitlement Verification Online) to confirm work rights before applying.
For New Zealanders: For New Zealanders great news is you are automatically granted a work rights visa upon arrival and can apply for your TFN immediately using the IAR system without additional documentation.
For Permanent Residents: If you have recently gained permanent residency, you can apply through Services Australia (Centrelink) offices or online through the ATO portal, depending on whether you have an Australian passport
Why You Need a TFN
To Avoid Excessive Tax Withholding
- Without a TFN, employers must withhold 47% tax from your wages (46.5% for residents, 47% for foreign residents)
- Even if you earn only $500 per week, you’d lose $235 to tax without a TFN
- With a TFN and correct tax declaration, you only pay tax on income above $18,200 per year (the tax-free threshold for residents)
To Start Working Legally
- Most employers require a TFN before offering employment
- You have 28 days from your start date to provide your TFN to your employer
- After 28 days without a TFN, maximum tax rates apply automatically
To Open a Bank Account Without Penalties
- Banks are required by law to ask for your TFN
- Without providing a TFN, banks withhold 47% tax on any interest earned on your account
- For a high-interest savings account earning $200 in interest, you’d lose $94 without a TFN
To Lodge Tax Returns and Claim Refunds
- Essential for submitting your annual tax return
- Required to claim tax refunds if you’ve been overtaxed
- Necessary for tracking your superannuation (retirement savings)
To Access Government Benefits and Services
- Needed for Centrelink payments (if eligible)
- Required for Commonwealth supported university places
- Essential for family tax benefits (if you have children in Australia)
- Necessary for superannuation accounts
Maria, an international student, worked for 6 weeks before providing her TFN. She earned $3,000 during this period. Without a TFN, $1,410 was withheld in tax. With a TFN, she would have only paid approximately $0-180 in tax, keeping an extra $1,200+ in her pocket.
Who Can Apply for a TFN
You can apply for a TFN if you meet all three of these conditions:
- You are a foreign passport holder, permanent migrant, or temporary visitor
- You are physically located in Australia
- You hold a valid visa with work rights
Eligible Visa Categories
Permanent Resident Visas:
- All permanent residency visa holders (subclass 189, 190, 191, 186, 187, etc.)
- Partner visas after permanent stage granted (subclass 100, 801)
- Parent visas (subclass 103, 143, 173, 804, 864, 884)
- Refugee and humanitarian visas
Temporary Visas with Full Work Rights:
- Student visas (subclass 500) – limited to 48 hours per fortnight during semester
- Working Holiday visas (subclass 417, 462)
- Temporary Skill Shortage visas (subclass 482)
- Temporary Graduate visas (subclass 485)
- Bridging visas with work rights (check your specific conditions)
Temporary Visas with Conditional Work Rights:
- Partner visas (subclass 820, 309) – usually include full work rights
- Temporary Activity visas (subclass 408) – if work rights are granted
- Some bridging visas (check VEVO for your work conditions)
NOT Eligible:
- Tourist visas (subclass 600, 601) – these explicitly prohibit work
- Visitor visas without work permission
- Visas with “No Work” conditions (check VEVO to verify)
How to Check Your Work Rights
Before applying for a TFN, verify your visa conditions using VEVO (Visa Entitlement Verification Online):
- Visit: https://immi.homeaffairs.gov.au/visas/already-have-a-visa/check-visa-details-and-conditions
- Enter your passport details
- Check the “Conditions” section for work rights
If your visa shows Condition 8101, 8102, 8103, 8104, or 8105, you have work restrictions or prohibitions. If your visa shows no work condition or specifically states work rights, you’re eligible for a TFN.
How to Apply for a TFN
Step-by-Step: Online TFN Application for Foreign Passport Holders
Before You Start – What You’ll Need:
- Your valid passport (the same one linked to your visa)
- Your visa grant number or ImmiCard number
- An Australian residential address where mail can be received (not a PO Box)
- An Australian mobile phone number (recommended but not mandatory)
- Valid email address
- Approximately 20 minutes of uninterrupted time
Detailed Application Process:
Step 1: Access the ATO Website
- Go to: https://www.ato.gov.au/individuals-and-families/tax-file-number/apply-for-a-tfn/foreign-passport-holders-permanent-migrants-and-temporary-visitors-tfn-application
- Click on “Apply online for a TFN using the Individual Auto Registration (IAR)”
- Read all the eligibility requirements carefully
Step 2: Verify Your Eligibility The system will ask you to confirm:
- You are in Australia
- You hold a foreign passport or are a permanent migrant/temporary visitor
- Your visa includes work rights
If you answer “No” to any question, you may need to use the paper form instead.
Step 3: Enter Passport Details
- Enter your passport number exactly as it appears on your document
- Select your country of passport issuance
- Enter your date of birth (format: DD/MM/YYYY)
- Select your gender as shown on passport
Common mistake: Entering the wrong passport number. Double-check this carefully – the ATO verifies your details with the Department of Home Affairs, and any mismatch will delay or reject your application.
Step 4: Enter Visa Information
- Select your visa type from the dropdown menu
- Enter your visa grant number (found on your visa grant notification)
- If you’re on a bridging visa and have an ImmiCard, use your ImmiCard number as your travel document number
Where to find your visa grant number:
- Check your email for the visa grant notification from the Department of Home Affairs
- Log into your ImmiAccount to view your visa details
- Use the VEVO app to find your visa information
Step 5: Provide Personal Details
- Legal name (family name and given names – exactly as shown on passport)
- Any other names you use or have used (including maiden names)
- Date of birth
- Country of birth
- Arrival date in Australia (found on your incoming passenger card or passport stamp)
Step 6: Enter Contact Information
- Australian residential address where you’re currently living (not a PO Box)
- Australian mobile number (if you have one)
- Email address
Important address note: Your TFN will be mailed to this address within 28 days. Make sure:
- The address can receive mail
- Someone reliable can accept mail on your behalf
- You’ll still be at this address in 28 days
- The address is written exactly as Australia Post recognizes it
Step 7: Provide Additional Information
- Reason for applying (select “I am starting a new job” or relevant option)
- Whether you’ve previously had a TFN
- If arriving for the first time or returning to Australia
Step 8: Review and Submit
- Carefully review all information entered
- Check for typos, especially in your name and passport number
- Ensure your address is complete and correct
- Submit the application
Step 9: Save Your Reference Number
- After submission, you’ll receive an ATO receipt ID/reference number
- Screenshot this or write it down – you’ll need it if you contact the ATO
- Save the confirmation email
What Happens Next:
- The ATO will verify your details with the Department of Home Affairs (this happens automatically)
- Your application will be processed within 28 days
- Your TFN will be mailed to the address you provided
- You won’t receive email or SMS notification – the TFN arrives by post only
Timeline:
- Application processing: 10-28 days (typically 14-21 days)
- Postal delivery: 3-5 business days after processing
- Total time: Expect your TFN within 3-4 weeks maximum
Common TFN Application Mistakes to Avoid
Learning from others’ errors can save you weeks of delays. Here are the most common mistakes migrants make when applying for a TFN:
1. Applying Before Arriving in Australia
The Mistake: Trying to apply for a TFN while still overseas Why It’s Wrong: The IAR system requires you to be physically in Australia and verifies your arrival The Fix: Wait until you’ve arrived in Australia and have been processed through immigration before applying
2. Providing an Incorrect or Temporary Address
The Mistake: Using a hotel address, hostel, or temporary accommodation where you won’t be in 28 days Why It’s Wrong: Your TFN is mailed to this address and there’s no email notification – if you’ve moved, you won’t receive it The Fix: Use a stable address:
- Your rental property address (if signed lease)
- A friend or family member’s address (with their permission)
- Your employer’s address (check with them first)
- University accommodation (if confirmed long-term)
3. Entering Passport Details Incorrectly
The Mistake: Typos in passport number, wrong country of issue, or mismatched spelling of name Why It’s Wrong: The ATO cross-checks with Department of Home Affairs – any mismatch causes automatic rejection The Fix: Have your physical passport in front of you while applying and enter details exactly as they appear
4. Selecting the Wrong Visa Subclass
The Mistake: Choosing “Student Visa” when you’re on subclass 485 (Graduate), or similar confusion Why It’s Wrong: The system links to your actual visa – selecting the wrong one causes processing delays The Fix: Check your visa grant letter or VEVO to confirm your exact visa subclass before applying
5. Applying Multiple Times
The Mistake: Submitting another application because you haven’t received your TFN after 2 weeks Why It’s Wrong: Multiple applications confuse the system and actually delay processing further The Fix: Wait the full 28 days before contacting the ATO. One application is all you need.
6. Using a PO Box Address
The Mistake: Providing a post office box as your residential address Why It’s Wrong: The ATO requires a residential street address, not a PO Box The Fix: Provide an actual residential address where you live or can reliably receive mail
7. Applying Without Work Rights
The Mistake: Applying for a TFN when your visa explicitly prohibits work (e.g., tourist visa) Why It’s Wrong: You’re not eligible and the application will be rejected The Fix: Check VEVO first – if your visa has “No work” conditions (8101, 8201, etc.), you cannot apply
8. Not Keeping the Reference Number
The Mistake: Closing the confirmation page without saving the ATO receipt ID Why It’s Wrong: If there’s an issue, the ATO needs this reference number to locate your application The Fix: Screenshot the confirmation page immediately and save the confirmation email
9. Confusing TFN with ABN
The Mistake: Thinking you need an Australian Business Number (ABN) to work Why It’s Wrong: TFN is for personal tax; ABN is only for operating a business The Fix: Apply for a TFN first. Only apply for an ABN later if you’re starting a business or working as a contractor
10. Not Informing Your Employer You’re Waiting for TFN
The Mistake: Starting work without telling your employer you’re waiting for your TFN Why It’s Wrong: They’ll withhold tax at 47% from your first paycheck The Fix: Tell your employer immediately that you’ve applied for a TFN and provide them with your ATO reference number. Show them proof of application.
Real Consequence Example:
Case Study – Michael’s Expensive Mistake: Michael, an Irish working holiday maker, made three critical errors:
- Applied using his hotel address (where he only stayed 1 week)
- Made a typo in his passport number
- Submitted a second application when he didn’t receive his TFN after 2 weeks
Result: His first application was rejected due to the passport error. His second application was delayed due to duplicate submission. He worked for 8 weeks at 47% tax withholding, losing over $2,800 in excessive tax. It took 6 weeks total to receive his TFN and another 8 weeks to receive his tax refund after lodging paperwork.
What he should have done: Triple-checked passport details, used his friend’s address, waited the full 28 days, and told his employer he was waiting for his TFN.
