Banking and TFN/ABN

Discussion in 'Money Management & Banking' started by shouldisell, 18th May, 2007.

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  1. shouldisell

    shouldisell Well-Known Member

    Joined:
    16th Jun, 2019
    Posts:
    348
    Location:
    melbourne
    I wasn't sure where to post this, so I though I would try here first.

    I recently opened a new account at my bank. I then received a letter saying that the bank doesn't have on record my Tax File Number, or Australian Business Number.
    They didn't request it, but said that without it I may be taxed on any interest my accounts make. This might explain why my accounts in the past have not been receiving any interest.

    Anyway. I was just curious as to what they actually need this information for?

    Cheers.

    PS. This seems like an excellent forum.
     
    shouldisell, 18th May, 2007
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    12,415
    Location:
    Sydney
    Do you know what interest rate you earn on funds in your bank account ? Most transaction accounts pay something ridiculous like 0.1% pa interest, which is why you may not have received any meaningful interest.

    If you do happen to earn interest and you haven't quoted your TFN, they are legally obliged to withhold 48.5% (or is it 46.5%, I can't keep up with our changing tax brackets ... whatever, it's the top margin tax rate - plus medicare levy I think) of your interest as tax, which you can then claim back through your tax return.

    It's a standard thing - best to quote your TFN unless you have a really good reason for not doing so.
     
    Simon Hampel, 18th May, 2007
    #2
  3. shouldisell

    shouldisell Well-Known Member

    Joined:
    16th Jun, 2019
    Posts:
    348
    Location:
    melbourne
    Thanks for the quick reply.

    The interest on my old accounts has never really concerned me, because it wasn't enough to warrant any sort of action.

    My new account has a slightly better interest rate (I think it's about 4-5% pa, with some conditions). I know it's nothing special, but I figure I may aswell have my money earning something while I (hopefully) make bigger plans.


    Thanks again.
     
    shouldisell, 18th May, 2007
    #3