TFN declaration¶

Definition. A TFN declaration is the information a new employee gives an employer about their tax file number and tax situation (for example, whether they claim the tax-free threshold), which the employer uses to work out how much tax to withhold from their pay.

In plain English¶

When someone starts a new job, they give their employer their tax file number and a few details about their tax, such as whether they want to claim the tax-free threshold. The employer uses this to work out the right amount of tax to take out of each pay.

Related lessons¶

• The TFN declaration

General information only — not tax, super or financial advice.