For whom is it mandatory to have a TFN?

A Tax File Number (TFN) is essential for managing tax obligations in Australia. It is mandatory for all individuals and entities that have a tax obligation, including residents, non-residents, companies, trusts, and partnerships. The primary purpose of a TFN is to ensure that taxpayers are correctly identified in the taxation system, which helps in the accurate processing of their tax returns and minimizes the risk of fraud.

Having a TFN allows individuals and businesses to efficiently report their income, claim tax deductions, and manage any tax file interactions with the Australian Taxation Office (ATO). The requirement applies universally to anyone who needs to pay tax in Australia, regardless of their employment status, income level, or residency. This makes it imperative for all taxpayers to obtain and utilize a TFN when engaging in any activities that incur tax obligations.

By ensuring that all who are required to pay tax obtain a TFN, the government can effectively monitor tax compliance and streamline tax collection processes.