The Privacy (Tax File Number) Rule 2015 (“the TFN Rule”) has replaced the previous Tax File Number Guidelines 2011. The TFN Rule, which is legally binding, regulates the collection, storage, use, disclosure, security and disposal of individuals’ tax file number (TFN) information.
The TFN Rule only applies to the TFN information of individuals and does not apply to TFN information about other legal persons including corporations, partnerships, superannuation funds and trusts.
The TFN Rule explicitly authorises the use and disclosure of TFN information by a TFN recipient for the purpose of giving an individual any TFN information that the TFN recipient holds about an individual. This ensures that the TFN Rule does not prevent an individual being given access to their information under Australian Privacy Principle 12 of the Privacy Act, or another Act that provides for access by persons to documents.
An individual is not legally obliged to quote their TFN, however there may be financial consequences for an individual who chooses not to quote their TFN.
When requesting an individual’s TFN, TFN recipients must take reasonable steps to ensure that:
(a) individuals are informed:
(i) of the taxation law, personal assistance law or superannuation law which authorises the TFN recipient to request or collect the TFN
(ii) of the purpose(s) for which the TFN is requested or collected
(iii) that declining to quote a TFN is not an offence
(iv) about the consequences of declining to quote a TFN
(b) the manner of collection does not unreasonably intrude on the individual’s affairs, and
(c) the TFN recipient only requests or collects information that is necessary and relevant to the purpose of collection under applicable taxation law, personal assistance law or superannuation law.
TFN recipients must take reasonable steps to:
(a) protect TFN information from misuse and loss, and from unauthorised access, use, modification or disclosure
(b) ensure that access to records containing TFN information is restricted to individuals who need to handle that information for taxation law, personal assistance law or superannuation law purposes.
A TFN recipient must take reasonable steps to securely destroy or permanently de-identify TFN information where it is no longer:
(a) required by law to be retained, or
(b) necessary for a purpose under taxation law, personal assistance law or superannuation law (including the administration of such law).
A breach of the TFN Rule is an interference with privacy under the Privacy Act. Individuals who consider that their TFN information has been mishandled may make a complaint to the Privacy Commissioner. As well as constituting a breach of the TFN Rule, unauthorised use or disclosure of TFNs can be an offence under the Taxation Administration Act 1953 (TAA) and attract penalties including imprisonment and monetary fines.
