I work as a sole trader in Australia. I work as a contractor on projects, getting paid hourly to do so usually from Australian-based clients. For the last 10-15 years, when a job was finished I prepared an invoice which included my ABN and banking details. Recently, however, both an Australian client and a new client from the UK have requested me to fill out a financial information form which includes all of my banking details as well as my Tax File Number (TFN).
I was under the impression that this was only to be shared with the ATO and actual full-time, part-time employers, not clients for sole traders. Am I mistaken?
I am hesitant to start sharing my TFN with any client who asks for it. I don't know their security credentials and have no idea how they would keep my TFN safe and secure from scammers online.
I've read that if you don't provide your TFN, then you may be charged additional tax – if this is the case what would that tax rate be, and is it better to be charged higher tax and keep your TFN secure?
Thank you in advance for your help and advice.
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