What happens if your employer does not have your TFN?

When your employer does not have your Tax File Number on file, Australian tax law requires them to withhold tax at the top rate of 47%. This is not discretionary. Your employer has no choice in the matter. The obligation to withhold at the highest rate applies from your very first shift and continues until you provide your TFN along with a completed Tax File Number Declaration form.

How this affects your take-home pay

The standard working holiday maker tax rate is 15%. When your employer withholds at 47% instead, the difference comes directly out of your pocket in the short term. On weekly earnings of $1,000, that is an extra $320 per week being held back. On $1,500 per week, it is nearly $500.

Over a few weeks, that gap becomes significant. It does not mean you lose that money permanently, but it does mean you will not see it until you lodge your tax return and the ATO refunds the excess.

What to do if this is happening to you right now

The fix is straightforward. Apply for your TFN as soon as possible if you have not already done so. Once you receive it, complete a Tax File Number Declaration form and give it to your employer immediately. From that point forward, the correct rate will apply to your wages.

If your application is still in progress, show your employer the confirmation email you received from the ATO when you submitted your application. Some employers will adjust the withholding rate once they can see the application is underway, though technically they are not required to do so.

Will you get the overpaid tax back

Yes. The excess tax withheld during the period before your TFN was on file will be credited against your tax liability when you lodge your annual tax return. The ATO calculates the difference between what you actually owed and what was withheld, and refunds that amount to your bank account. You simply need to make sure you lodge a return before the deadline, which is 31 October following the end of each financial year.

Giving your TFN to multiple employers

If you work for more than one employer during your time in Australia, each one needs your TFN separately. Providing it to one employer does not automatically share it with the others. Submit a Tax File Number Declaration form to every employer you work for, including casual and short-term roles.

Need help?

Need help with your TFN application?

We handle TFN applications for working holiday makers and make sure everything is submitted correctly so you can start earning at the right tax rate as soon as possible.