Do you need a tax file number?

Ordinary people, but also companies, superannuation funds, partnerships and trusts – in fact anyone or anything that pays tax – need to have a tax file number (TFN).

Individuals who go into business as a sole trader are able to use their own personal TFN when lodging their tax return and for all other instances where a TFN is required. In this case, income from the business is treated as their own income.

But if you have chosen to operate your business through a partnership, company or trust, you will need a separate TFN. (See the information on Choosing the right business structure here.)

Individuals, if they haven't already got a TFN, need to supply proof of identity. Hence applying online is not possible, but you can order the forms you need on the web or at Tax Office or Centrelink shopfronts.

But companies, partnerships and trusts can apply online at the Australian Business Register. They would need to supply some details about the business entity and nominate eligible persons to have authority to represent the entity in tax matters.

You only have to apply for a TFN once, but of course need to lodge a tax return every year.