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A working holiday maker who worked in Australia without a Tax File Number (TFN) can still lodge a tax return and recover the excess tax that was withheld.
The longer the delay in applying for a TFN, the more complex the return becomes, because employers may have stopped reporting your income or may have incorrect details on file.
How much extra tax is withheld without a TFN?
The difference between the no-TFN rate and the working holiday maker rate is substantial:
- With a TFN: 15% withheld on the first $45,000 of working holiday income
- Without a TFN: 45% withheld on every dollar from the first week
On a $1,000 weekly wage, that is $300 extra withheld every single week. Over a three-month period of full-time work, more than $3,500 has been withheld that you would never have paid with a TFN on file. This excess is fully recoverable when you lodge a tax return.
What you need to do before you can lodge
A tax return cannot be lodged without a TFN. The first step is therefore applying for a TFN if you do not already have one. Once the TFN is issued, the return can be lodged for any year in which you earned income, including past financial years if you missed lodging at the time.
If you have already left Australia, you can still apply for a TFN and lodge a return from overseas. See our article on how to lodge a tax return from overseas for more detail.
What records do you need?
To lodge a return covering work done without a TFN, our team needs:
- Your TFN (once issued)
- Your passport and visa details for the period worked
- Details of every employer you worked for, including business name and ABN if known
- Any payslips you kept showing the tax withheld
- An Australian bank account for the refund
Even if you have no payslips, the ATO holds records of income reported by employers under the Single Touch Payroll system. Through our tax agent portal we can access the ATO record of every employer who reported income for you in the financial year, including the gross pay and the tax withheld.
What happens if an employer did not report your income?
Some employers, particularly in cash-in-hand industries, do not report income to the ATO. If you were paid cash without a TFN, the income may not appear on the ATO record. In this case the return is more complex, and the strategy depends on whether the employer should have been reporting and whether you have any records of your own. See our article on cash in hand tax returns for the detailed rules.
How does our service handle a return after working without a TFN?
When you lodge through our service after working without a TFN, our team:
- Applies for your TFN if you do not have one, through our TFN application service
- Accesses the ATO income record once your TFN is active to identify every employer who reported income for you
- Reconciles the reported income against any payslips you provide to make sure nothing has been missed
- Lodges the return claiming the difference between the 45% no-TFN rate and the 15% working holiday maker rate
The refund for a year worked without a TFN is often several thousand dollars larger than a standard return because of the over-withholding. Get in touch with our team to lodge your return and recover the excess tax.
What about identity protection?
If you worked without a TFN because you were uncertain about how the system works, do not be tempted to share your details with strangers offering tax help online. Backpacker Facebook groups, WhatsApp communities, and messaging apps are full of scammers who target working holiday makers who feel out of their depth. Never share your TFN, passport, or visa grant with anyone who is not a registered tax agent. A registered agent is listed on the Tax Practitioners Board register with a verifiable TAN number. If they cannot show you their TAN, do not hand over your documents.