What happens if you do not provide your TFN when required?

When you do not provide your Tax File Number (TFN) when required, one significant consequence is that you may face higher tax rates. The TFN is essential for accurately assessing your tax obligations and entitlements. If you do not supply a TFN, your income may be taxed at the highest marginal tax rate, which is a safeguard for the revenue system. This situation arises because the absence of a TFN makes it more difficult for the tax authorities to administer tax properly, and they assume that you may not be eligible for any of the lower tax brackets or offsets that might apply if you had provided your TFN.

In addition to potentially higher tax rates, failing to provide your TFN can also complicate your ability to claim certain benefits or allowances, as the tax system relies on having this identification for processing your entitlements effectively.