Am I a tax resident of Australia if I have a TFN?

Question

I'm a non-resident of Australia trying to open an online savings account but it's only eligible to tax residents of Australia. It asked for my TFN and Australian address. I have a TFN, so am I a tax resident? Should I give them my TFN? Can I use my relative's Australian address?

Answer 1

If you're not living here, I don't think so, in fact I'm 99 per cent sure you're not, but I'm not an expert, just an Aussie taxpayer! You can phone the ATO on the number below - they're helpful but you may need a phonecard because they can keep you waiting a while before answering. Or you could ask your relly to call them on 13 28 61 (personal tax questions).

Answer 2

Non residents are able to obtain a TFN, so having a TFN does not make you a resident automatically. If they say that you can only open the account if you are a tax resident then it could be that they are not allowed to open accounts for anybody resident overseas. If you were an Australian resident and you were overseas you would be able to open that account. However, why not try to fill in the information as required by the site. Put in your TFN and see what happens. When they ask for the address put in the address that you have given the Australian Taxation Office. This may work. There could be all sorts of restrictions due to Australia having a higher overnight cash deposit rate than most other developed countries. People in England who earn around 5% interest on their money would love to have it here earning 8.25% interest, the Americans would like it more as they only earn less than the English, and in Japan they would be lucky to be earning 2% pa. In fact Bank West in Australia have an account which is paying about 9.7% interest, but you can only put a maximum of $500 per month into the account for twelve months. If you fail to make a deposit in any month you get no interest for that month.

Answer 3

Just because you have an TFN doesn't mean you are a resident for tax purposes.

You can give them your TFN - and some random address. That means you lie to them. And there could be a consequence.