A Tax File Number (TFN) Declaration is a form employees complete and give to their employer so that the correct amount of tax is withheld from their wages.

The form is submitted to the Australian Taxation Office (ATO) and is required whenever you hire a new employee, contractor (under PAYG), or someone changing their tax status.

Who Needs to Complete a TFN Declaration?

• All new employees
• Existing employees who have a change in tax situation (e.g., residency, tax-free threshold)
• Some labour hire contractors
• Working holidaymakers and overseas workers (with different rules)

Employers must submit the declaration electronically or via STP software within 14 days of starting employment.

Information Required on the Form

The employee provides:

• Full name and contact details
• TFN (or a reason why it’s not provided)
• Residency status
• Choice to claim the tax-free threshold
• HECS/HELP or financial supplement debts
• Superannuation fund details (if done through this form)

Why It Matters

Without a Valid TFN Declaration	Consequences
No tax-free threshold claimed	Higher withholding applied
No TFN provided	Tax withheld at the highest rate
Employer doesn’t lodge form	Non-compliance with ATO requirements

A TFN Declaration affects:

• How much tax is withheld from pay
• Whether the employee gets the tax-free threshold
• HECS/HELP repayment obligations

How to Lodge a TFN Declaration

Employers can submit the form:

• Through Single Touch Payroll (STP)
• Using ATO online services
• By mailing a paper TFN Declaration form (less common)

The ATO no longer accepts forms via fax or email.

How Ozobooks Helps

• Guides employees in completing TFN Declarations correctly
• Submits TFN info through STP-compliant systems
• Tracks and stores declarations for recordkeeping
• Helps with super choice forms and new hire setup

FAQ

Q1: Can I start work without giving a TFN?
Yes — but your employer must withhold tax at the maximum rate until you provide it.

Q2: Do I need to complete a new form for every job?
Yes. Each new employer requires a separate TFN Declaration.

Q3: What if an employee has more than one job?
They can only claim the tax-free threshold from one employer at a time.

Q4: Is the TFN Declaration the same as a super choice form?
No — but both are often collected during onboarding. They serve different purposes.