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Claiming DASP after WHV and 457.

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Newbie

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Replies 37

I came to Australia on a working holiday visa and then transition to a 457 Visa. All my super has always been paid into one fund. I am now trying to fill out the online DASP application and getting the notification:

 

"The Department of Immigration and Border Protection (DIBP) has advised that you have held working holiday maker (WHM) visa(s).

 

 

If you have never held a WHM visa, you need to contact the DIBP. Visit our DASP help page for more information.

 

Do not submit your application as your WHM visa(s) will be shown to your super fund once the application is submitted. Your super fund will use this visa information to determine the appropriate DASP tax rate(s).

 

As the DIBP advised you have held a WHM visa, the 65% rate may apply to your payment.

 

You can save your application and return to submit it later, after your visa information is corrected.

 

What can I do to ensure I am not taxed 65%, as for most of my time in Australia I was on the 457 VISA.

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

Megastar

Replies 28

Hi @tdudin123

Thanks for your question and welcome to the ATO Community.

 

We recognsise this may not be the answer you wanted to hear, however it sounds like you've worked whilst transitioning from a WHM to a 457 visa. In this situation (if you have held both WHM and non-WHM visas) the law doesn't allow for apportionment.

 

If your DASP payment includes amounts attributable to super contributions made while you held a WHM visa, the 65% tax rate applies to the DASP. This is the case even if the DASP is not wholly comprised of amounts attributable to those contributions. More information can be found here.

We’ve also provided some DASP application support for applicants  – check out the ATO Community Knowledge Base.

 

Thanks, Michael

37 REPLIES 37
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Best answer

Megastar

Replies 28

Hi @tdudin123

Thanks for your question and welcome to the ATO Community.

 

We recognsise this may not be the answer you wanted to hear, however it sounds like you've worked whilst transitioning from a WHM to a 457 visa. In this situation (if you have held both WHM and non-WHM visas) the law doesn't allow for apportionment.

 

If your DASP payment includes amounts attributable to super contributions made while you held a WHM visa, the 65% tax rate applies to the DASP. This is the case even if the DASP is not wholly comprised of amounts attributable to those contributions. More information can be found here.

We’ve also provided some DASP application support for applicants  – check out the ATO Community Knowledge Base.

 

Thanks, Michael

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I'm new

Replies 26

Could the ATO please provide specific information around why they have made this decision that affects those who may have worked for years on another visa and only a couple months on a WHV, who are losing out on thousands of dollars. This doesn’t seem ethical.
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Newbie

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I agree. I missed out on thousands of dollars because I came on a work holiday visa. What is the justification?
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Community Support

Replies 24

Hi @Eryann23 and @tdudin123,

 

Thanks for your questions!

 

The introduction of the 65% DASP tax rate for working holiday makers (WHM) was not a decision made by the Australian Taxation Office (ATO).   

 

The ATO administers the system that assists applicants applying for their departing Australia superannuation payment (DASP) and/or payment of unclaimed superannuation money online.

 

The Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 was amended in December 2016 to take effect from 1 July 2017.  The 65% rate for super was introduced along with the 15% rate for income tax as part of the WHM measure.  


There are 2 factors which both need to be met before the 65% rate will apply.

  1. The former temporary resident held a WHM visa
  2. The super payment includes amounts attributable to super contributions made under the WHM visa

The law change did not specify dates for contributions.  Therefore, regardless of how far back your contributions were made under the WHM visa, the 65% will take effect where the 2 factors above applied.

 

Thanks, JodieH.

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I'm new

Replies 1

Hi.

I have held WHM visa and..

 

"If your DASP payment includes amounts attributable to super contributions made while you held a WHM visa, the 65% tax rate applies to the DASP. This is the case even if the DASP is not wholly comprised of amounts attributable to those contributions. More information can be found here. "

 

However, I have never got paid my super therefore no attributed amount in my current super account(a Single super account which was set up while on another type of visa after WHM visa)

How can I prove this? or the system does verify itself? 

 

Thanks!

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Community Support

Replies 0

Hi @dannypark0629,

 

Welcome to our Community!

 

If you make a DASP claim, your super fund will check whether the payment they’re making includes amounts attributable to super contributions received while you held a WHM visa. If it does, the super fund will apply the DASP WHM rate. If it doesn't, the super fund will apply the ordinary DASP tax rate.

 

You can find general information about DASP on our website or in our Knowledge base articles on our Community!

 

Thanks, JodieH.

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Newbie

Replies 5

The ATO site states: 'The tax on any DASP made to working holiday makers on or after 1 July 2017 is 65%.'

 

But then also states : 'It does not matter when you held a WHM visa. If you have ever held a 417 or 462 and associated bridging visas and the DASP includes amounts attributable to super contributions made while you held the relevant visa, the DASP WHM tax rate will apply'

 

and as you stated 'The law change did not specify dates for contributions.'

 

 Can I please have more clarity on this? Does ‘ever’ mean all time or after the legislation was passed? I held a 417 visa for 6 months in 2013 then transitioned to a 457, since then I have been on a 457 visa for 5 years. I have held the same super fund throughout.

 

So does this or does this not apply to people who held a WHM before July 2017? If I decided to leave this year would I have to pay for 65% in tax? 

 

I am having trouble understanding that because I had a 6 month 417 visa 5 and a half years ago, if I now decide to leave Australia, I will have to forgo tens of thousands of dollars that I considered my pension because of a legislation passed 4 years later that the government didn't decide to specify dates on.

 

I don't understand how this is fair.

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Community Support

Replies 4

Hi @dandelionjones

 

Welcome to our Community!

 

The new legislation that came into effect on 1 July 2017, made changes to the DASP WHM tax rate which applies to the total payment and when you met all the following:

  • ever held a 417 or 462 and associated bridging visas 
  • the DASP includes amounts attributed to super contributions made while the person was a WHM
  • DASP made on or after 1 July 2017.

The DASP WHM rate applies to the entire payment, including any super accumulated while working under a different visa. The appropriate DASP tax rate will be determined by each super fund individually, as each super fund is making a separate payment.

 

If you'd like to discuss your personal situation with us, you can write to DASPmail@ato.gov.au. We aim to respond within 28 days from receiving your email. 

 

Thanks, JodieH. 

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I'm new

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Incredible. I was living and working in Australia for 54 months (4.5yrs), of which, 5 months (less than 9% of my total time in Australia) was spent on a WHV, and because of that, if I were to withdraw my super, I'd have to pay 65% tax on the whole lot.

 

That, quite simply, is robbery. Thanks Australia.