New tax file number guidelines (Tax File Number Guidelines 2011) have been registered, replacing the previous Tax File Number Guidelines 1992.

The TFN Guidelines, issued under section 17 of the Privacy Act 1988, regulate the collection, storage, use, disclosure, security and disposal of individuals’ TFN information.

While individuals cannot be required to provide their TFN, if they do not quote their TFN to employers and financial institutions then they will have tax deducted from their income or interest payments at the highest marginal rate.

Quotation of TFNs is also a condition of receipt of most Australian Government assistance payments.

The ATO and APRA have published ‘Classes of lawful tax file number recipients‘ which contains information on the classes of persons or bodies who are authorised by law to request an individual quote that individual’s TFN.

The TFN Guidelines only apply to the TFN information of individuals and do not apply to TFN information about other legal persons such as corporations, partnerships, superannuation funds and trusts.

The TFN Guidelines are legally binding. A breach of the TFN Guidelines is an interference with privacy under the Privacy Act.

Unauthorised use or disclosure of TFNs can be an offence under the Taxation Administration Act 1953 and can attract penalties including imprisonment and monetary fines.

The Office of the Australian Information Commissioner has issued a Fact Sheet.