Tax File Number (TFN) obligations for super

When a new employee joins your business, you can ask them to provide their Tax File Number (TFN) to you on the TFN Declaration form. As their employer, you must pass it on to their super fund within 14 days or when you next make a super contribution for the employee.


Employees are not required to give you their TFN. If an employee hasn’t provided their TFN to you within 28 days of commencing employment you are required to withhold PAYG tax on their salary or wages at the highest marginal rate. For more information on your PAYG withholding obligations visit the ATO website.

 

Existing employees who have not given you a TFN Declaration since 1 July 2007 can complete an Authority to give you permission to provide their TFN to the relevant super fund.


If a new employee gives you their TFN and you don’t pass it on to their super fund in the required timeframe you could be liable for a penalty levied by the ATO.


It’s not compulsory for employees to provide their TFN to you or to their super fund, however by providing their TFN, employees can ensure that:

  • their super fund is able to accept all types of contributions for the employee
  • they can potentially benefit from government co-contributions to super
  • they can avoid paying additional tax (34% for 2014/15) on employer contributions you make for them
  • it’s easier to keep track of their super.

 

Employees who ask their employer to make personal super contributions on their behalf from their after-tax pay must provide their TFN to you to pass on to their super fund or must provide it directly to their super fund.  If their TFN is not provided to the super fund, any personal contributions you make on their behalf cannot be accepted under the law and will be returned to you.

Disclaimers and notes

*Tax rate for the 2014/2015 financial year.

 

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