What is a TFN? Australia tax number guide for WHV makers

A Tax File Number (TFN) is a unique 9-digit number issued by the Australian Taxation Office (ATO) that identifies you in the Australian tax system. Every person who earns income in Australia needs one — and without it, your employer is legally required to withhold tax at the top rate of 45% from every pay.

Why working holiday makers need a TFN

When you start a job in Australia on a working holiday visa (subclass 417 or 462), your employer will ask for your TFN on the Tax File Number Declaration form. If you can't provide one, they must withhold at the maximum rate — 45% — from day one.

You have a 28-day grace period: if you start work before your TFN arrives, your employer can hold off the maximum withholding for up to 28 days while your application is processed. After 28 days without a TFN, the 45% withholding kicks in automatically. Applying the day you arrive is the safest move.

• With a TFN and a registered WHM employer: tax withheld at 15% on the first AUD 45,000 of earnings
• Without a TFN: tax withheld at 45% on all payments — you can claim most of this back at tax time, but it locks up a large chunk of your pay
• 28-day grace period after starting work before maximum withholding applies

How to apply for a TFN: free and online

You must be physically in Australia to apply. The process is free — the ATO never charges for a TFN, and any website charging you a fee for this is a third party you don't need.

• Go to ato.gov.au and navigate to 'Apply for a TFN' under individuals
• Working holiday visa holders apply via the foreign passport holders and temporary visitors pathway
• You will need your passport details and your Australian address
• After submitting online, your TFN is posted to your Australian address — allow up to 28 days, though many applicants receive it in 1–2 weeks
• Keep your TFN private — treat it like a password; only give it to employers, the ATO, and your bank

The TFN vs ABN trap

Some employers — particularly in hospitality, agriculture, and construction — will suggest that you work as a contractor on an Australian Business Number (ABN) rather than as an employee. This means you invoice them, they pay you without withholding tax, and you are responsible for paying tax yourself.

For most working holiday jobs this is the wrong arrangement. If you are doing regular ongoing work under the direction of the employer, at their workplace, using their tools, you are legally an employee — not a contractor. Working as a fake contractor (sometimes called 'sham contracting') means you miss out on minimum wages, superannuation, workers' compensation, and paid leave entitlements. It also creates a more complex tax situation.

The rule of thumb: if your employer tells you that you need an ABN to do what is obviously employee-style work, ask for a written explanation and consider seeking advice from the Fair Work Ombudsman before agreeing.

How Tern helps

Tern reminds you to apply for your TFN before or immediately after landing, and stores your TFN declaration status securely so you always know which employers have received it. At the end of the financial year, Tern surfaces your income and withholding history so you can lodge your tax return accurately — and claim back any over-withholding before the deadline.