advise the recipient of the TFN withheld amount. The TFN withheld amount becomes a prepayment of tax by the taxpayer whose funds have been withheld. When the taxpayer files an income tax return he or she would need to claim the so-called "TFN amounts" against his or her final tax liability, and any excess is refunded. The taxpayer needs to file an income tax return to get back the excess of tax. Exemptions Some people and organisations are exempt from TFN withholding; they may state their exemption category instead of quoting a TFN. This includes: Income tax exempt organisations (e.g., schools, museums). Non-profit organisations. Recipients of government pensions who are 80 years and older. Children under 16 (earning up to $420 per year of interest, in 2005). Foreign residents for interest and dividends (they are subject to non-resident withholding tax instead). People and organisations in these categories may still need to submit a tax return, but generally speaking these exemptions mean those not needing to submit a tax return don't need to get a tax file number. The exemption for children does not apply to company dividends, and if a bank account is held in more than one name, it is only exempt if all account holders are under 16. Children can apply for a TFN and quote it in the same way as anyone else, if they wish. For some forms of income, small earnings are exempt from TFN withholding for any account holder. For example, bank interest up to $120 per year is exempt. (However such amounts are still taxable income.) Issuing TFNs are issued by the Australian Taxation Office. A new taxpayer receives a tax file number within about a month of making an application and providing proof of identity. Centrelink helps those applying for certain benefits to apply for a TFN at the same time, if they don't already have one. For example, unemployment benefits are subject to the TFN withholding rules if a TFN is not quoted. A young person applying for such a benefit for the first time may have never previously needed a TFN. Foreigners in Australia whose visas permit them to work can apply for a TFN online, using their passport number and visa number. Proof of identity is established by the ATO confirming those numbers with the Department of Immigration. Check digit As is the case with many identification numbers, the