Hi guys, I want to create nab bank account since there's $0 monthly fee (classic one) over their website but they asked me to provide TFN.
Is it necessary since it's not my main bank card and I want to use it for savings/other purpose? They mentioned about the ATO stuff but i'm assuming that's only for your main card?
Thanks
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Is it necessary since it's not my main bank card and I want to use it for savings/other purpose?
It is actually more important that you provide TFN for savings account as that is where you will accrue the interest, and thus where banks will withhold your money from you.
You don’t have to, but they will withhold maximum tax on any interest, and you will fine it a nuisance to claim it back at tax time.
Is it necessary since it's not my main bank card and I want to use it for savings/other purpose? They mentioned about the ATO stuff but i'm assuming that's only for your main card?
LOL Yes…. Savings = interest, interest = taxable income.
The real question is why don't you want to give it? Sounds like that guy the other day who was compalining about doing an ID check for a bank account.
It’s necessary if they won’t open an account without it.
Otherwise, it’s not necessary.
If you want to see maximum tax rate of 45% disappear from your interest accrued every month, sure withhold your TFN from NAB.
No, but I assume you'll want to.
https://www.ato.gov.au/Individuals/Investments-and-assets/In…
Tax file number (TFN) withholding tax
If your bank doesn't have your tax file number (TFN), it will withhold tax from your interest at the highest marginal tax rate. You can claim a credit for the amount of tax withheld when you lodge your tax return.
You don't need to provide your TFN if:
you are under 16 years of age
the account is in your name
the account earns less than $420 interest each year.
Why wouldn't you if you are a legal citizen with a TFN?
Yes.