Identity verification is the step most new business owners skip during their TFN application. Without it, your tax file number can take weeks longer to arrive because the Australian Taxation Office (ATO) must confirm your identity before issuing it.
We get why people overlook this step. Between choosing a business structure, sorting out an Australian Business Number (ABN), and figuring out tax registration, identity verification can feel like an afterthought. And that’s why founders featured in Australian Business Magazine often mention this step as the one that caught them out.
So, let’s walk through what identity verification involves, who needs which documents, and how different applicants get it sorted. Stick with us to avoid the same delay so many new business owners face.
The Step That Comes Before Your TFN Gets Approved
The ATO needs proof that you’re really you before it issues your tax file number. This proof comes through identity verification, usually a passport, driver’s licence, or a quick face check through an app. A mismatch sends the application back to the ATO for reprocessing. That bounce-back slows down your TFN, the ABN application, GST registration, and other business registrations too, all because of one missing number.
The Order Sole Traders Usually Get Wrong
Sole traders often apply for their ABN first, assuming the TFN will sort itself out along the way. But the Australian Business Register needs your TFN on file before it can process that ABN application at all. The ATO usually kicks the ABN application back for more information. That means extra paperwork and more waiting before the ABN can be processed. If you’re a sole trader just starting, sort your TFN identity check before you touch the ABN form. It takes a few minutes through myID, and once that’s done, the rest of your registration moves smoothly.
The Simple Verification Route for Australian Citizens
If you’re an Australian citizen with a Strong Digital ID, you’re in for the easiest version of this process. You’ll do everything from your phone. This part breaks down into two stages: setting things up, then finding out where you stand.
Setting Up Your myID First
Start by downloading myID onto your phone. Add your name, date of birth, and email, then confirm your identity with a passport or driver’s licence. A quick selfie check compares your face to the photo on file, similar to the checks at airport security. This whole setup takes a few minutes, but it saves you a trip anywhere. Once myID confirms who you are, that same verification carries over to your TFN application, so you won’t need to repeat any of these steps later.
What Happens After You Verify
Once you verify your identity, your tax file number usually arrives within a day or two. A lot of applicants don’t realise the number gets sent straight to your myGov inbox, so check there before assuming it hasn’t come through. That clears the way for your ABN application, GST registration, and every other box you need to tick.
Your Backup Option Without a Strong Digital ID
Not everyone has a Strong Digital ID sorted yet, and that’s fine. Australian residents in this situation can still verify their identity in person, either at Australia Post or a Services Australia Centre.
Before you head in, pack these three things:
- Original ID Documents: Your passport carries the most weight here, but a driver’s licence or birth certificate works too. Just make sure it’s the original, not a copy.
- Proof of Postal Address: Staff need to confirm where you live, so grab a recent bill, bank statement, or lease agreement dated within the last few months.
- Completed Application: Filling this out beforehand, either the paper form or the online version, saves you from sitting there writing while others wait behind you.
Can Foreign Passport Holders and Migrants Skip Ahead?
Not quite skip ahead, but the process looks different. Foreign passport holders and permanent migrants apply online using their passport number and visa grant number. You won’t need a myID profile or a trip to Australia Post. After that, verification only takes minutes. The ATO checks your numbers against Department of Home Affairs records. If they match, you’re confirmed. No birth certificate, driver’s licence, or extra scans needed. But this fast track comes with two conditions. You must be physically in Australia when you submit the application, and your visa must carry work rights. If either one’s missing, the ATO can’t approve your application.
What a Failed Verification Costs You
A failed identity check delays your TFN and everything that depends on it. The ATO sends your application back, and you’re stuck fixing the mismatch before anything else moves. From there, the damage begins to snowball. Your ABN application stalls, GST registration sits untouched, and PAYG withholding setup goes nowhere if you’ve already hired staff.
If you’ve ever had one delayed step throw off your whole week, you know how this feels. Businesses caught in this loop often can’t pay wages correctly until the TFN comes through (and each delay triggers the next). It’s a pattern Australian Business Magazine has seen play out with several founders, usually from a name spelled differently across two documents.
Get This Step Right and the Rest Falls Into Place
Your TFN application can stall every subsequent registration if identity verification fails. Identity verification decides if your ABN, GST, and other registrations move forward on time or stall completely. You now know the fix. Citizens verify through myID, residents head to Australia Post, and migrants confirm identity with their visa details. All three paths end the same way, with a verified TFN and a business ready to move forward. This step feels small, but skipping it costs real time, real money, and plenty of avoidable frustration. One step done right, and the rest of your setup falls into place. After all, your business is worth getting right from day one.