How departing Australia superannuation payments work

If you ever worked and earned super in Australia while on a temporary visa then you may be entitled to claim some of that money once you leave the country. You can apply for what is known as a Departing Australia Superannuation Payment.

The Australian Taxation Office (ATO) says anyone working in Australia on a temporary visa is entitled to the same super payments as every other worker in Australia. That means, if eligible, your employer has to pay super, on top of your wages.

It’s that money you may be able to claim as a lump sum Departing Australia Superannuation Payment (DASP) once you leave Australia.

The amount you get back may be subject to different tax rates, depending on what visa you held and how you were classified as a temporary worker in Australia.

For example, if you were on a Working Holiday visa (subclass 417), a Work and Holiday visa (subclass 462) or an associated bridging visa, you were considered a working holiday maker (WHM). That entitled you to a special tax rate, often referred to as the “backpacker tax”. But it also comes with a hefty tax on any DASP you apply for when you leave Australia.

How to claim your DASP

To claim a DASP you need to have left the country and hold no active visa for Australia.

But before you leave, the ATO recommends making preparations for your application while still in Australia. Doing so while in the country will make it easier for you as you may need to get certain documents certified in a way that meets with Australian rules, the ATO says.

1 Find your super

First, though, you need to know where your super is held. If you’ve had multiple jobs you may have multiple super accounts, possibly with different funds.

If it’s been six months or more since you left Australia, or you had your visa cancelled, your super may have been transferred to the ATO as unclaimed super.

Check first with your employers, asking if they made any super payments for you and what fund they used. If they haven’t paid you super and you are entitled to it, the employer could face penalties.

The ATO has an online tool you can use to search for any super owing to you, once you’ve confirmed your identity.

You can also set up and use a MyGov account, or you can contact the ATO direct by phone (13 10 20 if you are in Australia or +61 2 6216 1111 if overseas and call between 8am and 6pm Monday to Friday, Australian Eastern Standard Time or Eastern Daylight-saving Time) or email DASPmail@ato.gov.au.

2 Make an application

Once you’ve established where your super is held you can use the same ATO online tool to lodge your application for DASP held in either a super fund or the ATO.

If you’d prefer to make a paper submission you can access the forms online, though note there is a separate one for money held in a super fund and another for money held by the ATO.

The online application is free but the paper submission may incur a charge from any of the super funds you contact for DASP.

3 Provide any documents

In both cases you may be required to provide certified copies of documents to prove your identity, depending on the amount you are applying for. It’s these documents you would be wise to obtain before leaving Australia to make sure they comply with Australian rules on certified copies.

Check with each super fund as to what documents, certified or otherwise, it may require.

How is DASP taxed?

The amount withheld in tax on any DASP will be determined by each super fund, based on information it holds on how any contributions (taxed or not) were made.

If you earned super while employed on any working holiday maker (WHM) visa then the ATO says your DASP will be taxed at 65%.

If you earned super under a different temporary working visa then your DASP will be taxed at ordinary tax rates applicable at the time.

If you earned super under a mix of visas that included one for working holiday maker then you may be subject to a mix of tax rates, based on what contributions were made under what visa conditions.

The ATO says tax will be withheld from your payment when it’s made. That payment may be made up of two components – a tax-free component and a taxable component (that may have a taxed element and/or an untaxed element).

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Source: ATO

What payment you are entitled to under any DASP will generally be paid within 28 days of receipt of your application. It may take longer if additional documents are needed.

You should get a DASP summary explaining how the payment was determined and what tax was withheld. If you dispute the amount paid or withheld then you should contact your super fund or the ATO, depending on where you made the claim.

If you’re going to be working in Australia on a temporary visa in the near future, make sure you know which super fund suits your needs. It’s your choice where you want your employer to pay any super contributions and having a preferred account is a good way to prevent multiple accounts being opened in your name. You can compare super funds with Canstar.

Compare super funds

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