Assigned to you by the Australian Taxation Office (ATO), your Tax File Number (TFN) applies for the rest of your life and its use is protected by legislation.
Although a super fund trustee is authorised to collect your TFN, it is not compulsory to provide your TFN.
If you do provide your TFN to your super fund, the fund should only use it for legal purposes.
Here are some things you should be aware of if your super fund doesn’t hold your TFN:
- You may pay more tax on super contributions
- Instead of the 15% tax that’s charged on before tax contributions, which includes contributions from your employer, you may be charged up to the highest marginal tax rate
- The highest marginal tax rate from 1 July 2016 is 45% plus Medicare levy of 2% and the temporary budget repair levy of 2%, totalling 49% – that’s an extra 34% tax you may pay
- You might be missing out on extra contributions
- Your super fund will not be able to accept your personal after-tax contributions into your account
- This also means you’re unable to take part in the government co-contribution scheme
If your super fund has your TFN and you’ve given your fund permission, your fund can help you find other super accounts (including lost accounts) by searching the ATO database on your behalf.
From the search, the fund will let you know where your other accounts are, which makes bringing your super together easier.
If you’re an Essential Super customer, you can update your TFN easily through NetBank or by calling 13 4074.