Your web browser is not actively supported by this site. For the best experience, update your browser, or switch to a modern browser like Google Chrome or Mozilla Firefox.

How your TFN can save you money!

Have you provided your TFN or ABN to your financial institution? If not, then it’s probably costing you money!

Did you know that Withholding Tax is applied to interest payments on accounts owned by non-residents of Australia? From the ATO’s perspective, if the institution you bank with does not have your Tax File Number (TFN) or ABN assigned to your interest earning accounts, you are treated as a non-resident for the purpose of this tax. If this is you, then you will not be receiving what you are entitled to.

How Withholding Tax Works

Withholding tax is paid on your behalf to the Australian Tax Office (ATO), when you start earning interest on your bank accounts over a certain amount each month, if you haven’t provided a TFN or ABN.

  • ​Anyone over 16 who earns more than $10 per month interest on their bank accounts will have 49% of this interest withheld, at time of payment
  • Anyone under 16 who earns $35 per month interest on their bank accounts will have 49% of this interest withheld, at time of payment

If you only have cobwebs in your account this won’t matter too much, but as soon as you start saving, it will! For example, you and your partner are saving hard for your first home deposit; you have $20,000 in your joint savings account in July and manage to deposit $2,000 per month throughout the year; the interest rate on your account is 2.8%. If your financial institution does not have both you and your partner’s TFN or ABN applied to the account then you will have effectively paid $453 in withholding tax that could have been avoided.

The more savings you have, the greater the amount you could be losing to Withholding Tax.

What to Do

You can find out if you have been paying Withholding Tax by looking at a recent account statement. This will typically be shown as a line item above or below the corresponding interest payment; with the total amount paid for the year shown in your account summary. If in doubt contact your financial institution and ask the question, “Do you have my TFN or ABN recorded against each of my accounts?”

If you have supplied this information in the past, your financial institution should in theory apply this to each of your future accounts; but there is no guarantee. Also remember, if you have recently opened a joint account, then each account holders TFN or ABN must be registered to avoid Withholding Tax.

If you have been paying Withholding Tax because of not providing a TFN or ABN, then your financial institution can refund this into your account when you provide it. However, they will only do this for tax paid in the current financial year. To recover Withholding Tax paid in previous years, you will need to contact the ATO for details.

If you think this could be you, what are you waiting for? Get checking now!

Southern Cross Credit Union announced as WINNER of the Business category at the recent Tweed Shire 2021 Sustainability Awards.

“Being named the winner for best business in sustainability alongside some of the brightest and committed people in the region is truly humbling and a credit to our dedicated team, who continually go above and beyond to deliver an exceptional experience to our customers, be it banking or serving...

“Being named the winner for best business in sustainability alongside some of the brightest and committed people in the...

Read More
Australia’s Best Car Loans for 2022 revealed.

Southern Cross Credit Union been recognised, winning Mozo Expert Choice Award for their New Vehicle Loan Product. CEO Stuart Edwards shares, “We are very proud to achieve this award and recognition which supports our mutual ethos and commitment to providing ongoing value to our customers and community. We are so appreciative...

Southern Cross Credit Union been recognised, winning Mozo Expert Choice Award for their New Vehicle Loan Product. CEO Stuart Edwards...

Read More
SCCU Announce the 2021 Community Grants Recipients, Each Awarded a Share in $40k to see their Dream of a Better Tomorrow Brought to Life.

Southern Cross Credit Union (SCCU) today announced the recipients who will  share in $40,000 worth of Community Grants. Following on from a successful 2020 program which saw SCCU support six community projects, they are once again putting their money where their mouth is, backing community organisations and small businesses...

Southern Cross Credit Union (SCCU) today announced the recipients who will  share in $40,000 worth of Community Grants. Following...

Read More
It’s Official. Our Community Grants program is Award-Winning!

On Wednesday the 6th October, we were proud to be announced as a Highly Commended Award-winning Finalist in the 2021 Get Ready NSW Community Award. In what was a record year for applications, we reached the Final 4, and were awarded a Highly Commended trophy. This award recognises the...

On Wednesday the 6th October, we were proud to be announced as a Highly Commended Award-winning Finalist in the...

Read More

Get started with an online loan application

Years of age

Years of age

Australian our NZ resident

Australian our NZ resident

Confirmed employment

Confirmed employment

If you'd like a little extra help, call our team on    1300 360 744.