You are obliged to report a member's TFN to us if you have it. A member's TFN is central to our being able to correctly calculate their:
- super co-contributions
- low income super amounts
- liability for excess contributions
- Division 293 tax.
If you do not have a member’s TFN, you:
- will not be able to accept certain member contributions
- may be liable for additional income tax (32% on top of the 15% tax you already paid) on assessable contributions, such as employer contributions (including salary sacrifice contributions).
Only report valid member TFNs
When reporting member information to us, if you do not know the member's TFN it is not acceptable to report an exemption code (such as 444 444 444) to us. The use of exemption codes is intended for an exemption from withholding tax on interest and other investment income by banks and other investment bodies. Find out more at Claiming an exemption from quoting a TFN for savings accounts and investments.
If your member or their employer quotes a number to you that you know is not the valid TFN of the member, you should treat the member as having not quoted a TFN. You should attempt to obtain the correct number from them.
If they do not give you their valid TFN and you are reporting:
- an employer contribution – fill the member TFN field with zeroes
- a member contribution – Regulation 7.04(2) of the SISR states that you may not accept member contributions in these circumstances, therefore you should not be reporting those contributions.
Example: reporting valid member TFNs
In May 2013, Brunswick Super Fund reviewed the TFNs it held for all its members, checking for one or more members with the same TFN. It found that it had exemption codes stored at the TFNs for 90 members. The fund wrote to these members in June 2013 seeking their correct TFN.
By August 2013, 85 of the members contacted had responded with valid TFNs.
For the remaining 5 members, the fund reported no TFN (by zero-filling the member TFN field) in October 2013. Where they were accumulation members in receipt of contributions, the fund also returned member contributions and super co-contributions received since 1 July 2007 (when the SISR was amended to prohibit a fund from accepting member contributions where a TFN is not quoted). Brunswick Super Fund also applied additional tax to employer contributions being made for the members.
End of example