the income reported by the taxpayer against the payments reported by the paying entities. The types of income payments covered by the TFN data matching rules include: Wages and salaries from employers (see PAYG), including fringe benefit and superannuation information Interest from banks and similar institutions, from all account types, including term deposits Interest from bonds and debentures Dividends from public companies Distributions from unit trusts, including cash management trusts Superannuation payments (amounts paid out to a beneficiary) Some government benefits, in particular unemployment benefits. Other information provided to the ATO using the TFN includes health insurance information, as well as the purchase and sale of property, such as real estate and shares. Because of the community backlash against the aborted Australia Card scheme, the expanded TFN rules are technically optional. The taxpayer entitled to such income payments has a choice between quoting the TFN, or not doing so. As a general rule taxpayers quote their TFN. Institutions usually help by reminding or inviting clients to do so on any new source of income (e.g., new accounts, new debentures, new shareholdings). Forms for quoting include a reminder of the key provisions of the system, for example from Computershare: It is not an offence to withhold your TFN or, where the securities are held for a business purpose, your ABN. However, if you do not provide your TFN or ABN, tax may be deducted from payments of interest and the unfranked portion of dividends and distributions at the highest marginal rate. If an account is held in the names of multiple investors, each may choose whether to quote or not, but tax is withheld unless at least two have done so. TFN withholding tax In the few cases that a payee has not supplied the paying entity with his or her TFN by the time payment is to be made, unless if the payment is exempt, the paying entity is legally required to withhold a TFN withholding tax amount at the highest marginal tax rate (currently 47%) from the payment the paying entity is about to make. Similar but stricter rules apply to businesses which do not supply their customers with an ABN. The paying entity would report the TFN and ABN withheld amounts on its next Business Activity Statement (BAS) and add the withheld amounts to the payment it needs to make to the ATO. The paying entity would also