Tax file numbers and super contributions

Introduction

To effectively administer the superannuation system, it is important that tax file numbers (TFNs) are provided when contributions are made to a super fund or retirement savings account (RSA). Super funds include funds regulated by the Australian Prudential Regulation Authority (APRA), self-managed super funds (SMSFs) and non-complying funds.

If you do not have a member's TFN:

• you may be liable to pay additional income tax (31.5% on top of the 15% tax you have already paid) on assessable contributions, such as employer and salary sacrifice contributions
• the member may miss out on super co-contributions
• you must return all member contributions made on or after 1 July 2007 to the person or entity that paid it within 30 days of becoming aware that you should not have accepted those contributions (see Accepting contributions)
• it will make it harder for your member to keep track of their super.

If you pay additional income tax and your member gives you their TFN later, you can claim a tax offset for the additional tax you paid. (See Claiming back additional tax.)

To help super funds operate more efficiently, from 1 July 2011, super fund trustees and RSA providers have been able to use their members' TFNs as a primary locator to link contributions and rollovers with member accounts and to locate member accounts. From 1 January 2012, TFNs may also be used by super fund trustees and RSA providers to help consolidate super accounts within and across funds.

Sections within Introduction

• Valid and invalid TFNs
• TFN exemption code
• TFN algorithm