How to get my child a tax file number?
Quick Answer
Parents can get their child a tax file number by completing an application form and verifying the child's identity at a participating post office. This unique number helps children avoid higher tax rates on bank interest and prepares them for their first part-time job.
Understanding Tax File Numbers for Children
A tax file number is a unique reference number that stays with a person for their entire life. It is used by the government to manage tax and other records. While most people think of these numbers as something for adults, they are also very useful for children as they begin to save money or enter the workforce.
Getting this number for a child is often a smart move for families who have opened savings accounts in the child's name. Without this number, banks are often required to withhold a significant portion of any interest earned to cover potential taxes. By providing the number to the bank, the child can keep more of their savings. It also ensures that everything is ready to go when the child eventually lands their first job or signs up for higher education courses.
How the Application Process Works
The usual approach to getting a tax file number for a child involves a few simple steps. Most families choose to use the post office application method because it is straightforward. This process typically starts by filling out a form either online or on paper with the child's personal details, such as their full name and date of birth.
After the form is filled out, an appointment is usually made at a local post office that offers tax office services. During this visit, a staff member will look at original identity documents to confirm who the child is. This method is popular because it allows parents to keep hold of important original documents like birth certificates rather than sending them through the mail. Once the identity check is finished, the information is sent to the tax office to be processed.
Common Mistakes to Know About
A common issue is that many people try to provide photocopies of identity documents instead of the originals. Staff members are typically required to see the actual original documents to complete the verification process. Using copies often results in the application being rejected, which means the parent has to start over or return for another appointment.
Another frequent pitfall is not matching the name on the application exactly to the child's birth certificate. Even a small spelling difference or a missing middle name can cause the system to flag the application for review. Many people also wait until the very last minute to apply, such as the week a child starts a new job. Since the number can take several weeks to arrive in the mail, it is usually better to apply well in advance.
Things Worth Knowing
It is worth noting that there is no minimum age requirement for a tax file number. A parent can apply for a baby just as easily as they can for a teenager. This is often helpful for families who want to set up long-term investment accounts for their children early in life.
Many people find it helpful to know that once a child reaches the age of 15, they are generally expected to sign their own application form. For children younger than 15, a parent or legal guardian can sign the form on their behalf. It is also important to remember that this service is completely free when done through the official tax office channels. If a website asks for payment to provide a tax file number, it is likely not an official government site.
The Clear Answer
To get a tax file number for a child, follow these steps to complete the process correctly:
1. Visit the official tax office website to download the tax file number application form for residents, or pick up a copy from a local post office.
2. Fill out the child's personal information on the form, ensuring all names match their legal identity documents exactly.
3. Collect the necessary original identity documents, which usually include a birth certificate and a second form of ID like a passport or a school report.
4. Book an identity verification appointment at a participating post office. If the child is under 15, the parent usually attends; if they are 15 or older, the child must attend to sign the form.
5. Take the signed form and the original documents to the appointment for the staff member to verify.
6. Wait for the tax file number letter to arrive in the mail at the address provided, which typically takes about 28 days.
Frequently Asked Questions
Does it cost money to get a tax file number?
No, it is free to apply for a tax file number through the official tax office and its authorized partners like the post office.
How long does the application take to process?
Most people receive their child's tax file number in the mail within 28 days after the identity check is completed.
Can a child under 15 sign their own form?
Usually, a parent or guardian signs the form for children under 15, while children 15 and older sign for themselves.
What if my child already has a tax file number?
A person only ever needs one tax file number for life. If you have lost the details, you can contact the tax office to find the existing number.
Is a tax file number required for a kids bank account?
It is not legally required, but providing one prevents the bank from taking the highest rate of tax out of any interest earned.
People Also Ask
Important Note
This article shares general information about the application process. For specific questions about tax laws or financial requirements, talking to a professional tax agent or contacting the tax office directly is always a good idea.