Bank accounts and tax file number requirements - Tax basics for non-profit organisations

Note: This document forms part of our publication Tax basics for non-profit organisations. To view the full publication, click here.

Introduction

If your organisation has savings accounts or investments, there will be times when you have to quote your organisation’s tax file number (TFN) or ABN. This helps ensure everybody pays the correct amount of tax on income they receive from interest, dividends and unit trust distributions.

It is not compulsory to quote your organisation’s TFN or ABN for savings accounts and investments – it is your choice. However, if you do not quote one of these numbers, your organisation may have tax withheld from it at the rate of 46.5%.

If you decide to quote your organisation’s TFN or ABN, you need to contact your investment body about each account or investment you want to quote it for.

Which number does your organisation quote to its investment body?

You can quote your organisation’s TFN or ABN.

What if your organisation does not have a TFN or ABN?

If your non-profit organisation does not have a TFN or ABN and is not required to lodge an income tax return, you can claim an exemption from quoting a TFN to your investment body.

What happens if your organisation does not quote its TFN or ABN?

If your organisation chooses not to:

quote its TFN or ABN (and its income from interest and other investments is more than or equal to the relevant threshold), or
claim an exemption from quoting a TFN

your organisation will have tax withheld from its interest and other investment income at the rate of 46.5%. The amount withheld is called a TFN amount.

Can your organisation claim a credit or refund of TFN amounts withheld?

Your organisation can claim a credit of TFN amounts withheld if it is required to lodge an income tax return. In your organisation’s return, it must show the TFN amounts that were withheld, and we will credit the total amount on its assessment notice.

Your organisation can claim refunds directly from its investment body or from the Tax Office, depending on the circumstances.

For more information refer to Tax file number withholding on accounts and investments held by non-profit organisations (NAT 6416).

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Last Modified: Tuesday, 5 June 2007

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