Tax File Number and Tax in Australia: A Canadian's Guide

Australia's tax system shares some DNA with Canada's but the details are different enough to catch newcomers off guard. Getting your Tax File Number sorted immediately on arrival, understanding what gets withheld from your pay, and knowing when and how to lodge a tax return will save you money and stress in your first year.

What is a Tax File Number?

Your Tax File Number (TFN) is your unique identifier with the Australian Taxation Office (ATO). Think of it as your SIN number from Canada, but specifically for tax purposes. You need it to work legally, to avoid being taxed at the highest possible withholding rate on your wages, and to lodge a tax return.

How to apply

• Apply online at ato.gov.au. Most applicants are processed within 28 days, though it often arrives sooner.
• You will need your passport and visa details.
• Once you receive your TFN, provide it to your employer on a Tax File Number Declaration form. Your employer will then withhold the correct amount of tax from your wages.

The Australian financial year

This is one of the first things that trips up Canadians. Australia's financial year runs from 1 July to 30 June - not 1 January to 31 December like Canada. Tax returns cover that July-to-June period and are typically lodged between July and October each year.

Income tax rates in Australia

Australia uses a progressive tax system similar to Canada. The rates below apply to the 2025-2026 financial year for Australian residents.

The Medicare Levy

On top of income tax, most Australian tax residents pay a Medicare Levy of 2% of their taxable income. This funds the public health system. As a Canadian, you are covered by Medicare under the Reciprocal Health Care Agreement, but whether you pay the levy depends on your visa and residency status.

Working Holiday Visa holders and temporary visa holders who are non-residents for tax purposes are generally exempt from the Medicare Levy. Your tax agent or the ATO website can confirm your specific situation.

Superannuation: Australia's version of a pension

Superannuation (super) is Australia's compulsory retirement savings system. Your employer is required to contribute 11.5% of your ordinary time earnings into a super fund in your name. You do not see this money in your take-home pay - it goes directly into the fund.

Lodging your tax return

You can lodge your return in two ways.

myTax (free, via myGov)

The ATO's online portal is free and pre-fills a lot of your income data automatically from employer reports. You will need a myGov account linked to the ATO. This is a five-minute setup. For a straightforward return - one employer, no investment income, no complex deductions - myTax is all you need.

Registered tax agent

If you have multiple income sources, worked across the financial year changeover, or are unsure about your residency status for tax purposes, a registered tax agent is worth the cost (typically AUD $150-$300). They also get an extended lodgement deadline, giving you more time.

Canadian tax obligations while in Australia

This is the part most Canadians don't think about. If you are considered a Canadian tax resident while working in Australia, you may still have obligations to the Canada Revenue Agency (CRA). The Canada-Australia tax treaty is designed to prevent double taxation, but you need to understand where you are considered resident.

Generally, if you have cut ties with Canada (no home maintained there, no significant residential ties), you can become a non-resident of Canada for tax purposes and file a final return covering the departure year. If you are uncertain about your Canadian residency status while abroad, consult a cross-border tax specialist.

Key Australian tax documents to keep

• Payment Summary / Income Statement - your employer reports this directly to the ATO and it appears in your myGov account.
• Super fund statements - keep records of your contributions and fund details if you plan to claim DASP on departure.
• Work-related expense receipts - tools, uniforms, vehicle logs, professional development costs. These are deductible against your Australian income.
• Bank interest statements - interest earned in Australian bank accounts must be declared.

The bottom line

Australian tax is straightforward once you understand the financial year, the TFN, and what gets deducted from your pay. Apply for your TFN immediately on arrival, set up myGov and link it to the ATO, and stay on top of your lodgement window each October. If you have any complexity around Canadian residency or multiple income sources, a registered tax agent is money well spent.