Tax File Number - Exemptions

Exemptions

Some people and organisations are exempt from TFN withholding; they may state their exemption category instead of quoting a TFN. This includes:

• Income tax exempt organisations (e.g., schools, museums).
• Non-profit organisations.
• Recipients of government pensions who are 80 years and older.
• Children under 16 (earning up to $420 per year of interest, in 2005).
• Foreign residents for interest and dividends (they are subject to non-resident withholding tax instead).

People and organisations in these categories may still need to submit a tax return, but generally speaking these exemptions mean those not needing to submit a tax return don't need to get a tax file number.

The exemption for children does not apply to company dividends, and if a bank account is held in more than one name, it is only exempt if all account holders are under 16. Children can apply for a TFN and quote it in the same way as anyone else, if they wish.

For some forms of income, small earnings are exempt from TFN withholding for any account holder. For example bank interest up to $120 per year is exempt. (However such amounts are still taxable income.)