Your child’s landed your first job – congrats! Whether they're serving customers at the local cafe, or helping to coach their local sports team, having a job is a milestone that’ll help them gain valuable life experience and boost their financial capability.
There’s one tiny thing that comes with earning money that we’re all familiar with – income tax. Here’s a simple way to explain it, and how you can help them get a Tax File Number sorted early.
What is income tax, and how much is it?
Income tax is a slice of your earnings that goes to the Australian Government and helps pay for things like hospitals, schools, roads, and emergency services. It’s paid to the Australian Taxation Office (ATO), and their employer usually takes out the tax before paying your child – known as withholding tax, or Pay-As-You-Go.
Income tax in Australia is progressive – meaning, the more they earn, the more they’re taxed. Typically most teens don’t pay much (or any) tax because of the tax‑free threshold – this means they can earn up to a certain amount, before tax kicks in.
Regardless of how much they earn, they still need to tell their employer their Tax File Number.
What’s a Tax File Number (TFN)?
A Tax File Number the ATO’s way of identifying your child – it’s a unique set of numbers, that tells the government who they are when it comes to money and tax.
Your child needs a TFN to:
- get paid the right amount
- avoid paying more tax than they should
- start superannuation (yes, that’s right – start building savings!)
- lodge a tax return later
How do they get a Tax File Number?
Getting a Tax File Number is free, and you only do it once. Here’s the easiest way depending on their age:
If they’re 15 or older, they can apply online through the ATO site using their myGovID.
If they're under 15, a parent or carer will need to help them apply via Australia Post.
For more details on how to Apply for a TFN, head to the ATO website.
They have a Tax File Number, what do they do now?
When they start a new job, their employer will give them a Tax Declaration Form. That’s where they can:
- enter their TFN
- say whether they want to claim the tax‑free threshold
- confirm if they have a HELP/HECS debt
After that, their employer handles the rest – calculating tax, paying their super, and making sure they’re all set for their first pay.
Getting their tax file number sorted early means they'll get paid the right amount, and they get to keep more of their earnings.
Getting their first job is a big milestone. Download our First Job Checklist to help them hit the ground running, or discover more resources at heykit.com.au/learn/freeresources.