Your Tax file number (TFN) is one of those things that everyone seems to ask you for, and for good reason. This is because your TFN ensures that any tax you are required to pay is aligned with your earnings and your marginal tax rate. The highest marginal tax rate could be applied by not supplying your TFN . As a result, tax on any income or contributions you make might be the 47% tax rate, including Medicare Levy.
Its often a misconception that you are not earning income from whoever you supplied your TFN to. Here at Steve May Financial Services, we require your TFN for superannuation, investment and insurance applications. This will result in you paying the correct tax rate on;
- Cash account interest
- Investment returns
- Superannuation contributions
- TPD insurance payouts (held in super)
No one wants to pay more tax then they have to. Therefore, ensuring that your TFN and tax details are supplied will assist in minimising your tax payable. For more advice and strategies on minimise your tax, contact the team at Steve May Financial Services and start a conversation today.
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
