Starting Your First Job? Here's What You Need to Know About Tax and Super
Starting your first job is exciting!!
Your first pay, your own income, and a bit more independence -- it's a major milestone.
Along with your new duties at work, there will be a few tax and superannuation responsibilities that can seem confusing at first.
We're here to help you make sense of it all.
Starting Strong
Your first job is a great opportunity to build good financial habits.
A simple checklist is:
Most importantly, don't be afraid to ask questions. Tax and super can feel overwhelming when you're new to the workforce, but getting the right information early can save a lot of stress later.
1. Get a Tax File Number (TFN)
A Tax File Number (TFN) is a unique number issued by the Australian Taxation Office (ATO). It stays with you for life and identifies you for tax matters.
Because it's unique to you, you do need to keep it safe and only share it carefully and securely and for valid reasons. Think of it like a credit card number, but it can't be replaced -- stolen TFNs are a form of fraud or scam, so should be reported.
Your employer will usually ask for your TFN when you start work, often by having you complete a Tax File Number Declaration. This is a valid reason to share it.
If you don't provide your TFN, your employer may need to withhold more tax from your pay than necessary. This can mean missing out on almost half your hard-earned pay until you get it sorted out!!
If you don't already have one, you can apply for a TFN through the ATO. Applying for a Tax File Number is FREE. There are slightly different processes depending on your age, whether you already have Digital ID and/or a Passport; or if you are Aboriginal or Torres Strait Islander.
Do I need an adult to get a TFN? That depends - under 13 you need a parent/guardian, 13-15 you or
your parent/guardian can sign, but 16 and over it's all on you!!
I think I have a TFN but I'm not sure or can't find it...
If you have MyGov connected to the ATO, you can find it there. If that gives no joy and you don't have any paperwork that shows it, you can call the ATO on 13 28 61. They will need to verify your identity to keep your TFN safe.
2. Complete Your New Starter Forms
When you begin a new job, your employer will ask you to complete some paperwork.
This may include:
A Tax File Number declaration
Superannuation choice forms
Personal details and employment information
These forms help your employer pay you correctly, calculate the correct amount of tax to withhold from your wages, and ensure your super contributions are paid correctly.
3. Why Tax Is Taken From Your Pay
When you receive your pay, you'll usually notice that the amount deposited into your bank account is less than your hourly rate multiplied by hours worked, or gross pay.
That's because your employer withholds tax and sends it to the ATO on your behalf throughout the year.
This helps spread your tax payments across the year rather than facing a large tax bill at tax time. It's literally called Pay As You Go Withholding!
When your tax return is lodged after the end of June, all the amounts withheld by employers for you through the year are balanced against the tax owed on your total income. If too much was withheld, it should be refunded to you. If not enough was withheld, you'll have to pay the difference.
If you do receive your full gross pay, don't panic straight away; there may not be any tax withheld because the earnings amount is under the taxable amount. This is likely if you're just starting off with one or two short shifts a week.
4. Keep an Eye on Your Payslips
Each payslip provides useful information about:
Your earnings and how your pay was calculated
Tax withheld
Super contributions
Leave balances (if applicable)
Taking a few minutes to review your payslip can help you spot any issues early, and better understand where your money is going. Payslips may be emailled to you or made available via an employee app.
Don't be afraid to ask questions - it's your money, you deserve to understand it!!
5. Don't Forget About Super
Superannuation (usually called "super") is money set aside for your retirement.
If you're eligible, your employer will make super contributions into a super fund account on your behalf. You're eligible if you're over 18 OR working more than 30 hours a week.
When starting work, you should be able to choose your own super fund. If you already have one, letting your employer know those details can help keep your super in one place. If you don't have one or they can't obtain the details, the employer may set you up in their choice of fund.
Even though retirement might seem a long way off, super can become one of your most valuable long-term assets. Employers are also legally required to make payments into super for all their eligible workers.
What's an Award?
An Award is like a rulebook for employment in a certain industry or type of job. They define things like minimum pay rates, overtime and penalties, breaks - and are the legal minimum conditions for the jobs that have an award. Sometimes there's a workplace-specific Enterprise agreement, and the default is the National Minimum Wage.
Knowing your award, Enterprise Agreement and the details of your employment contract allows you to know your rights and be able to tell if things are not quite as they should be.
Fair Work Australia has more information:
https://www.fairwork.gov.au/starting-employment/before-starting-employment
https://www.fairwork.gov.au/find-help-for/young-workers-and-students
Pay and Conditions Tool (PACT) this one is a handy lookup for a summary of your entitlements
Keep Records Throughout the Year
It's a good idea to keep copies of:
Payslips
Work-related receipts and records
Super information
Keeping things organised, safe and secure makes tax time, applying for a loan, and budgeting SO much easier.
Need Help Understanding Tax or Super?
At Chromatic Accounting & Tax, we believe tax should be explained in plain English. Whether you're starting your first job, working casually while studying, or simply unsure what your payslip means, we're happy to help you understand your obligations and make informed decisions. Let's work through it together.
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