Your tax file number and Australian tax

Your TFN (tax file number) is your personal number with the ATO (the Australian Taxation Office). Apply as soon as you land, because without it your employer and bank must take more tax.

Getting your TFN

A TFN is a bit like a UK National Insurance number, but for tax. It is free. You can apply online once you are in Australia, if your visa gives you the right to work and is linked to your passport. Visas with a “no work” condition (such as 8101) can’t use the online form.

1. Apply online on the ATO website using your passport details. No documents need to be sent
2. Give an Australian postal address: the TFN comes by post
3. Allow up to 28 days. Don’t apply twice, it slows things down
4. Give your TFN to your employer, bank and super fund (your pension fund) once you have it

Without a TFN, your employer must withhold tax at the top rate, and your bank must withhold more tax from your interest. If you start work before your TFN arrives, say on the TFN declaration form your employer gives you that you have applied. Your employer then withholds at the normal rate for 28 days. If you haven’t given them your TFN by then, they must switch to the top rate. See Your first 30 days for where this fits.

Are you an Australian tax resident?

Australia has its own residency tests, separate from your visa. As a rough guide, the ATO says you are usually a resident if you have been in Australia continuously for 6 months or more and for most of that time worked in one job and lived in one place. Use the ATO’s residency tool if you are unsure. Residents are taxed on worldwide income, with some relief for temporary visa holders: see Moving money from the UK.

Tax rates for 2026–27

On top comes the Medicare levy of 2%, which helps pay for the public health system. If you are not entitled to Medicare (for example on some temporary visas) you may be able to claim an exemption: see Healthcare and Medicare.

Example: on a salary of A$100,000 (about £52,600), income tax is A$20,520 and the Medicare levy A$2,000, a total of A$22,520 for a full year as a resident. Unlike the UK, there is no separate National Insurance. Your employer also pays 12% super on top of your pay into your super fund. Try the pay calculator.

Working holiday makers

If you are on a Working Holiday visa (subclass 417), different rates apply. The ATO’s withholding schedule for pay from 1 July 2026 uses these rates, the same as in 2025–26:

Your employer must be registered with the ATO as an employer of working holiday makers. If it isn’t, it must withhold tax at the higher foreign resident rates. If you don’t give your TFN, it must withhold 45%.

Reading your payslip

By law your employer must give you a payslip within 1 working day of payday. It must show:

• Gross pay (before tax) and net pay (what lands in your account)
• Hours and hourly rate, if you are paid by the hour
• Loadings, allowances, bonuses and penalty rates
• Every deduction, including tax withheld
• Super paid for you, and the fund’s name. Since 1 July 2026 employers must pay super each payday, not every quarter

Your tax return

Unlike most UK employees on PAYE, most working people in Australia lodge a tax return each year. Use the ATO’s “Do I need to lodge?” tool if unsure. The tax year runs from 1 July to 30 June.

Your first return will cover only part of a year. If you also have UK income in the same period, you may need advice: see Telling HMRC you’re leaving.