Why TFN & ABN Important

Why do I need a Tax File Number?

Actually working without a TFN [Tax File Number] is illegal and if found by the immigration office the corresponding student would be deported by VISA regulations.

Before working it is essential to have a TFN before starting to work and we as students are not supposed to work more than 20 hrs/week. And 17% of tax will be deducted from each payment. And this 17% tax is for every dollar that is earned above 6000$ in a year.At the end of fiscal year the remaining amount will be refunded.

For example if you earn $10000 in a year there will be no tax for $6000 but for the rest of $4000, 17% of tax will be taken from the salary for every payment. If you need the refund you will have to apply for it through the Taxation Offices website.

The taxation office website is http://www.ato.gov.au So, as recommended by the immigration department (DIMIA) for international students, you should have a valid TFN number and a bank account in an Australian bank through which you get your fortnight pay (salary) (once in two weeks) salary will be deposited.

During the orientation in your respective universities, you will be asked to fill-up a form to apply for a work permit and TFN number.

What is Australian Business Number?

Akin to TFN is an ABN (Australian Business Number) which is meant for any person who is willing to do a business in Australia. You can also apply for an ABN instead of a TFN, but while submitting for your tax returns every year, the procedure may slightly vary.

Though some students have an ABN, it is advisable to head on with TFN. You may even have both (at no cost!).