Tax File Numbers (TFN)
HIP is required by law to collect the TFN of members to use for authorised purposes.
If HIP does not have members’ TFN from 1 July 2007:
- HIP will have to deduct extra income tax on certain contributions
- HIP may not be able to accept certain other contributions, and
- Employees may miss out on any super co-contributions.
HIP will have to pay extra income tax.
It is not compulsory to for employees to supply their TFN to you to pass onto HIP, however if they don’t, HIP will be liable to pay extra income tax on certain contributions made to their accounts.
The contributions that are most likely to be taxed in this way are the contributions you make on behalf of employees, including salary sacrifice contributions.
If employees have opened an account prior to 1 July 2007, and their TFN has not been provided to HIP, contributions made after this date will be taxed an extra 31.5% once those contributions exceed $1000 in an income year. This includes the first $1000.
For accounts opened after 1 July 2007 and employees TFN has not been provided to HIP, all contributions made to that account will be taxed an extra 31.5%. HIP will work out if it has to pay this extra tax at the end of each year.
Employers may not be able to make certain other contributions
From 1 July 2007, HIP is only be able to accept certain other contributions if we have your employees TFN. This may affect their eligibility to receive the super co-contribution.
The contributions HIP will have to reject include any voluntary contributions.
Quoting employees' TFN
From 1 July 2007, when employees provide you with their TFN on a Tax file number declaration form (NAT 3092), you must pass this onto HIP.This should be done either:
- When you make the first employer contribution for the employee, or
- Where no contribution is made, within 14 days of the employee authorising the release of their TFN to you.
You can provide HIP with your employees TFN through:
- Our Membership Application form
- Your monthly Contribution Advice
- The Australian Tax Office Employment Declaration Form.
Important note: Unless you hold an Australian Financial Services License (AFSL), or are an authorised representative of an organisation that holds an AFSL, you cannot recommend any financial products or give advice about any superannuation funds.
Breaches of the relevant legislation could expose employers to significant penalties.
Any person wanting advice about financial products should seek advice from an Australian Financial Services licensee or an authorised representative of a Licensee.
This website is provided by Private Hospitals Superannuation Pty Ltd ABN 59 006 792 749, AFSL 247063, RSE L0001533, Trustee of Health Industry Plan (SPIN HIP0100AU, RSE R1056617), and is general information only. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. Please note that investments can go up and down. Past performance is not a reliable indicator of future performance. You should assess your own financial situation and needs, read the relevant Product Disclosure Statement and consult an adviser if required before making a decision about products on this website.