Tax File Numbers (TFN) and Medicare in Australia
Translated from the Arabic original. Read in Arabic
Two of the first things a newcomer to Australia needs are a Tax File Number (TFN) and, if eligible, enrolment in Medicare, the public health system. Delaying the first costs you money; delaying the second can cost you more at your first doctor’s visit.
The Tax File Number
The Australian Taxation Office (ATO) issues it free, and most holders of visas with work rights can apply online after arriving. Give the number to your employer when you start work. If you do not, the law requires them to withhold tax at the highest rate from your pay. Only share it with your employer, your bank and the ATO, and avoid anyone who charges a fee to get one for you.
The tax year and your return
The Australian tax year runs from 1 July to 30 June. If you lodge your own return, the usual deadline is 31 October after the end of the tax year. You can lodge online with myTax through your myGov account, or through a registered tax agent, who usually gives you more time.
Medicare: who can enrol?
Medicare is Australia’s public health system and covers part of the cost of seeing doctors and treatment in public hospitals. Citizens and permanent residents can enrol, as can some people applying for permanent residence depending on their situation. Visitors from countries with a reciprocal health care agreement get limited cover. Many temporary visa holders are not eligible and usually must hold private health insurance as a visa condition.
How to enrol
You enrol in Medicare through Services Australia, online or at a service centre, with your passport and visa documents. You then receive a Medicare card and can link it to your myGov account to track claims.
The Medicare levy
Most resident taxpayers pay a small percentage of their taxable income as the Medicare levy. Higher earners without appropriate private hospital cover may also pay a surcharge. Details and thresholds are updated every year on the ATO website.
Superannuation
Your employer must pay a compulsory percentage of your salary into a superannuation fund in your name, on top of your salary. Give your TFN to your super fund too, because without it contributions can be taxed more heavily and you may miss out on some benefits. If you work for several employers, make sure you do not have multiple funds you do not need, since each one charges fees. You can see all your funds through your myGov account linked to the ATO.
This article is general information, not legal or tax advice. Laws change, so check the official sources below or the competent authority for your situation. Found a mistake? Tell us.