Tax File Number Guidelines 1992

as amended

made under section 17 of the

Privacy Act 1988 

This compilation was prepared on 21 December 2010 taking into account amendments up to Privacy Act 1988 Part III Division 4 - Tax File Number Guidelines Amendment No 1, 2010 

Prepared by the Office of the Australian Information Commissioner

Tax file number guidelines 1992

Introduction

These Guidelines are issued under Section 17 of the Privacy Act 1988.  They are intended to protect the privacy of individuals by restricting the use of tax file number information.  The Privacy Act provides that a breach of the Guidelines is an interference with the privacy of an individual. An affected individual may complain to the Privacy Commissioner.  Where appropriate the individual may seek compensation. Unauthorised use or disclosure of tax file numbers is also an offence under the Taxation Administration Act 1953 with a penalty of up to $10,000 fine, two years imprisonment, or both.

In complying with these Guidelines, tax file number recipients should have regard to the Annotations and Compliance Notes issued by the Privacy Commissioner.  The Guidelines are legally binding.  The Annotations and any Compliance Notes are intended to assist those affected in interpreting the Guidelines, and do not have the force of law. 

For the purposes of these Guidelines, the term "taxation law" has a meaning which is wider than its usual meaning under the Taxation Administration Act 1953.  Its extended meaning is given in Guideline 9.8.  The terms "taxation purpose" and "tax related purpose" carry a similar extended meaning.  A complete list of definitions appears in Guideline 9, "Meaning Of Terms".

Guidelines

1. General

1.1 The tax file number is not to be used as a national identification system by whatever means.

1.2 The rights of individuals under taxation, assistance agency or superannuation law to choose not to quote a tax file number shall be respected.

2. Use and disclosure of tax file number information

2.1 The tax file number is not to be used or disclosed to establish or confirm the identity of an individual for any purpose not authorised by taxation, assistance agency or superannuation law.

2.2 The tax file number is not to be used or disclosed to obtain any information about an individual for any purpose not authorised by taxation, assistance agency or superannuation  law.

2.3 Tax file number information is not to be used or disclosed (whether directly or indirectly) to match personal information about an individual except as authorised by taxation, assistance agency or superannuation law.  In particular, matching of tax file number information is not to be undertaken by government agencies, employers, investment bodies or the trustees of superannuation funds for any purpose not authorised by taxation, assistance agency or superannuation law.

2.4 Tax file number information shall only be used or disclosed by tax file number recipients as authorised by taxation, assistance agency or superannuation law. 

3. Obligations of the Commissioner of Taxation

3.1 The Commissioner of Taxation shall publicise, in a generally available publication, information relating to:

(a) the classes of persons or bodies who are authorised by law to request an individual to quote that individual's tax file number;

(b) the specific purposes for which such a request may be made;

(c) the prohibitions upon the collection, recording, use and disclosure of tax file number information; and

(d) the penalties that apply to unauthorised acts and practices in relation to tax file number information;

together with information as to where detailed particulars relating to these matters can be obtained.

3.2 Wherever practicable, publication by the Commissioner of Taxation pursuant to 3.1 shall be made prior to any new circumstances in which a tax file number may be requested arising as a result of an amendment to a taxation law.

3.3 The Commissioner of Taxation shall ensure that any practice involving the collection of tax file number information which has been prescribed or approved by him, provides for individuals to be informed:

(a) of the legal basis for collection;

(b) that declining to quote a tax file number is not an offence; and

(c) of the consequences of not quoting a tax file number.

3.4 The Commissioner of Taxation shall also observe all other relevant obligations contained in these Guidelines.

3A. Obligations of the Insurance and Superannuation Commissioner

3A.1 The Insurance and Superannuation Commissioner shall ensure that any practice involving the collection of tax file number information which has been prescribed or approved by him or her provides for individuals to be informed:

(a) of the legal basis for collection;

(b) that declining to quote a tax file number is not an offence; and

(c) of the consequences of not quoting a tax file number.

3A.2  The Insurance and Superannuation Commissioner shall publicise, in a generally available publication, information relating to:

(a) the bodies, including the trustees of superannuation funds and employers, who are authorised under superannuation law to request tax file numbers;

(b) the specific purposes under superannuation law for which a tax file number may be requested;

(c) the prohibitions upon the collection, recording, use and disclosure of tax file number information; and

(d) the penalties that apply to unauthorised acts and practices in relation to tax file number information;

together with information as to where detailed particulars relating to these matters can be obtained.

3A.3  Wherever practicable, publication by the Insurance and Superannuation Commissioner pursuant to 3A.2 shall be made prior to any new circumstances in which a tax file number may be requested arising as a result of an amendment to superannuation law.

3A.4 The Insurance and Superannuation Commissioner shall observe all other relevant obligations contained in these Guidelines. 

4. Obligations of assistance agencies

4.1 In cases where assistance agencies are entitled to require under assistance agency law or request under taxation law provision of a tax file number, they shall publicise, in a generally available publication, information relating to:

(a) the specific purposes for which a tax file number may be required or requested by them;

(b) the prohibitions upon the use and disclosure of tax file number information; and

(c) the penalties that apply to unauthorised acts and practices in relation to tax file number information;

together with information as to where detailed particulars relating to these matters can be obtained.

4.2 Wherever practicable, publication by assistance agencies pursuant to 4.1 shall be made prior to any new circumstances in which a tax file number may be requested arising as a result of an amendment to assistance agency law. 

4.3 Assistance agencies shall observe all other relevant obligations contained in these Guidelines.

5. Collection of tax file number information

5.1 Tax file number information shall only be requested or collected from individuals by tax file number recipients as authorised by taxation, assistance agency or superannuation law. 

5.2 Tax file number recipients shall take such steps as are reasonable in the circumstances to ensure:

(a) that the individual is informed:

(i) of the legal basis for collection;

(ii) that declining to quote a tax file number is not an offence; and

(iii) of the consequences of not quoting a tax file number.

(b) that the manner of collection does not intrude to an unreasonable extent upon the affairs of the individual; and

(c) that only information which is necessary and relevant in relation to whichever of taxation, assistance agency or superannuation laws applies to the tax file number recipient. 

6. Storage, security and disposal of tax file number information

6.1 Tax file number recipients shall ensure:

(a) that tax file number information is protected, by such security safeguards as it is reasonable in the circumstances to take, to prevent loss, unauthorised access, use, modification or disclosure, and other misuse; and

(b) that access to records that contain tax file number information is restricted, where practicable, to persons undertaking duties related to responsibilities arising under taxation, assistance agency or superannuation law which necessitate the use of tax file numbers. 

6.2 Tax file number recipients may dispose of tax file number information when it is no longer required by law nor administratively necessary to be retained. Any disposal of tax file number information shall be by appropriately secure means.

7. Incidental provision of tax file numbers

7.1 Where an individual is required by law, or chooses, to provide information which contains a tax file number for a purpose not connected with the operation of a taxation, assistance agency or superannuation law:

(a) that individual shall not be prevented from removing the tax file number; and

(b) if the tax file number is not removed, the recipient shall not record, use or disclose the tax file number.

8. Staff training

8.1 Tax file number recipients shall take such steps as are reasonable in the circumstances:

(a) to make all staff aware of the need to protect the privacy of individuals in relation to their tax file number information; and

(b) to inform those staff whose duties include the collection of tax file number information, or access to tax file number information for the operation of taxation, assistance agency or superannuation law of:

(i) the circumstances in which tax file number information may be collected;

(ii) the need to protect the privacy of the individuals to whom the tax file number information relates.

(iii) the prohibitions on the use and disclosure of tax file number information; and

(iv) the sanctions that apply to breaches of tax file number and privacy requirements.

9. Meaning of terms

9.1 Any term used in these Guidelines which is defined in the Privacy Act shall be interpreted in accordance with that definition.

9.2. "Approved recipient" means a tax file number recipient who:

(a) has been engaged by an authorised recipient to provide services in circumstances where it is reasonably necessary to have access to tax file number information; or

(b) has been permitted by an individual to have access to that individual's tax file number to assist in the management of that individual's taxation or assistance agency affairs

9.3 "Authorised recipient" means a tax file number recipient other than the Commissioner of Taxation and assistance agencies who has been authorised by taxation, assistance agency or superannuation law to receive tax file numbers.

9.4 "Employer" means an employer as defined in Section 221A of the Income Tax Assessment Act 1936.

9.5 "Assistance agency" means:

(a) the Department of Health and Family Services;

(b) the Department of Employment, Education, Training and Youth Affairs;

(c) the Department of Social Security;

(d) the Department of Veterans' Affairs.

9.6 "Investment body" means a person who is an investment body within the meaning of Section 202D of the Income Tax Assessment Act 1936.

9.7 "Tax file number recipient" has the same meaning as "file number recipient", which is defined in Section 11 of the Privacy Act, and shall include:

(a) the Commissioner of Taxation;

(b) an assistance agency as defined in 9.5 above;

(c) an approved recipient as defined in 9.2 above; and

(d) an authorised recipient as defined in 9.3 above.

(e) the trustee of a superannuation fund as defined in 9.11 below.

9.8 "Taxation law" for the purpose of these Guidelines means:

(a) an Act for which the Commissioner of Taxation has the general administration;

(b) an Act under which the Commissioner of Taxation has powers and functions related to the use of tax file numbers; including the Higher Education Funding Act 1988;

(c) Those sections of the Child Support (Registration and Collection) Act 1988 and the Child Support (Assessment) Act 1989 that deal with the provision, use and disclosure of tax file numbers;

(d) regulations under any Act or provisions referred to in paragraphs (a) and (b) of this definition.

9.9 "Assistance agency law" for the purpose of these Guidelines means:

(a) those sections of the following Acts that deal with the handling of tax file numbers for the purposes of data-matching as set down in the Data‑matching Program (Assistance and Tax) Act 1990:

(i) the Child Care Act 1972;

(ii) the Student and Youth Assistance Act 1973;

(iii) the Social Security Act 1991;

(iv) the Veterans' Entitlements Act 1986;

(b) the Data-matching Program (Assistance and Tax) Act 1990;

(ba)   the Paid Parental Leave Act 2010;

(c) relevant regulations made under any provisions referred to in paragraphs (a) and (b) and (ba) of this definition.

9.10 “Superannuation law” for the purposes of these guidelines means:

(a) an Act for which the Insurance and Superannuation Commissioner has the general administration; including the Superannuation Industry (Supervision) Act 1993.

9.11 “Trustee” for the purposes of these guidelines and in relation to superannuation funds is given the same meaning as trustee is given in the Superannuation Industry (Supervision) Act 1993. 

Notes to the Tax File Number Guidelines 1992

Note 1

The Tax File Number Guidelines 1992 (in force under section 17 of the Privacy Act 1988) as shown in this compilation is amended as indicated in the Tables below.

Table of Instruments

Table of Amendments