TFN & ABN Explained: What You Actually Need

Understanding the difference between TFN and ABN is essential for working legally in Australia.

Tax File Number (TFN)

What It Is

Your personal tax ID number issued by the Australian Taxation Office (ATO). It's a 9-digit number unique to you.

When You Need It

• Any paid employment — Give your TFN to your employer
• Opening a bank account — Optional but recommended (otherwise higher withholding on interest)
• Government payments — If eligible for any

How to Apply

Online Application:

1. Go to ato.gov.au
2. Select "Apply for a TFN"
3. Choose "Foreign passport holder, permanent migrant, and temporary visitor"
4. Complete the form
5. No documents to upload

Requirements:

• Valid visa that allows you to work
• Australian address for delivery
• Passport details

Processing time: Usually 28 days by post

Cost: Free (beware of scam sites charging fees)

Important Notes

• You can start work before receiving your TFN
• You have 28 days to provide it to your employer
• Without a TFN, maximum tax rate (about 47%) is withheld
• Keep your TFN private — don't share it unnecessarily

Australian Business Number (ABN)

What It Is

An 11-digit number for running a business or working as a sole trader/contractor.

When You Need It

• Working as a contractor (not an employee)
• Freelancing
• Running a small business
• Providing invoices for your work

When You DON'T Need It

• Regular employment (TFN is sufficient)
• Casual jobs at cafes, retail, etc.
• Any role where you're an employee

How to Apply

Online Application:

1. Go to abr.gov.au
2. Apply for an ABN
3. You'll need your TFN first
4. Provide business details

Processing: Often instant, sometimes a few days

Cost: Free (again, beware of scam sites)

TFN vs ABN: Quick Comparison

	TFN	ABN
For	Employees	Contractors/businesses
Tax handling	Employer withholds PAYG	You manage your own tax
Super	Employer pays	Usually your responsibility
Need for jobs?	Almost always	Only if contracting

Common Situations

"My employer says I need an ABN"

Red flag! Employers sometimes try to engage workers as contractors to avoid paying superannuation and other entitlements. This is often illegal "sham contracting."

You're likely an employee if:

• You work set hours determined by the business
• You use their equipment
• You can't subcontract your work
• You work for only one business

If in doubt, check the ATO's employee vs contractor guidance.

Gig Economy (Uber, DoorDash, etc.)

These platforms typically engage you as a contractor. You'll need:

• TFN (always)
• ABN (usually)

You'll be responsible for:

• Tracking your income
• Setting aside money for tax
• Lodging your own tax return
• Paying your own super (recommended but not always required)

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Bottom line: Most students only need a TFN. Get one as soon as you arrive. Only apply for an ABN if you're genuinely doing contractor work or freelancing.