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Re: TFN issues

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I'm new

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I just wanted to know the legalities of working without a TFN when the employer is taking 50% tax from wages??...

Thanks
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Most helpful response

ATO Certified Response

Former Community Support

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Hi @T98,

 

Welcome to our Community!

 

When you start work for an employer, they will give you a TFN declaration form which you need to complete with your personal details such as your TFN, name, address etc. You also use the form to advise if you want to claim the tax-free threshold, and if you have any higher education loans or financial supplement debts. This information is important to provide to the employer so they tax you correctly.

 

If you haven't provided your TFN, your employer is required to withhold the top rate of tax. This rate depends on your residency status:

  • Resident of Australia for tax purposes - tax rate is 45% plus 2% Medicare levy = 47%
  • Non-resident for tax purposes - 45% (does not pay Medicare levy) = 45%.

If you have a TFN or you have applied for one, you need to let your employer know, and you should notify them of your TFN as soon as you have it so they withhold the correct amount of tax.

 

If you have further questions you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks.

1 REPLY 1

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @T98,

 

Welcome to our Community!

 

When you start work for an employer, they will give you a TFN declaration form which you need to complete with your personal details such as your TFN, name, address etc. You also use the form to advise if you want to claim the tax-free threshold, and if you have any higher education loans or financial supplement debts. This information is important to provide to the employer so they tax you correctly.

 

If you haven't provided your TFN, your employer is required to withhold the top rate of tax. This rate depends on your residency status:

  • Resident of Australia for tax purposes - tax rate is 45% plus 2% Medicare levy = 47%
  • Non-resident for tax purposes - 45% (does not pay Medicare levy) = 45%.

If you have a TFN or you have applied for one, you need to let your employer know, and you should notify them of your TFN as soon as you have it so they withhold the correct amount of tax.

 

If you have further questions you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks.