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I was about to lodge my DASP on the website, and the last page on the online application says I have held a Working Holiday Maker visa, which is true. But it was 2012-13, and I'm claiming for my 2015-19 stay which I was for different visas. Should I still submit my application even though the 65% tax rate may apply?

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ATO Certified

Enthusiast Super Specialist

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Hi @jeechoi4,

 

As you’re aware, there are special rates of tax that apply to this type of payment.

 

If you’re paid a lump sum, you will pay no tax on the tax-free component, 35% on the taxed element and 45% for an untaxed element of the taxable component.

 

Tax will be deducted at the time payment is made and this money is then sent to the ATO.

 

A tax rate of 65% applies to both the taxed and untaxed element if you were on a 417 (working holiday), 462 (work and holiday), or an associated bridging visa. However, the super lump sum payment isn’t included in your assessable income.

 

Deciding whether to take your benefit as cash or leave it with your super fund depends on what’s right for your personal circumstances, so it’s a good idea to get personal financial advice to help you decide what’s best.

 

If you have not claimed your super within six months of leaving Australia, your superannuation fund will transfer your super to the ATO. They will hold your unclaimed super until you contact them to claim it.

 

For further information about claiming your super under a Temporary Resident’s Visa, please check out the ATO’s Temporary Residents and Super page.

 

You may also wish to have a look at QSuper’s Temporary Resident leaving Australia page.

 

Thanks,

Hailey

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ATO Certified

Enthusiast Super Specialist

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Hi @jeechoi4,

 

As you’re aware, there are special rates of tax that apply to this type of payment.

 

If you’re paid a lump sum, you will pay no tax on the tax-free component, 35% on the taxed element and 45% for an untaxed element of the taxable component.

 

Tax will be deducted at the time payment is made and this money is then sent to the ATO.

 

A tax rate of 65% applies to both the taxed and untaxed element if you were on a 417 (working holiday), 462 (work and holiday), or an associated bridging visa. However, the super lump sum payment isn’t included in your assessable income.

 

Deciding whether to take your benefit as cash or leave it with your super fund depends on what’s right for your personal circumstances, so it’s a good idea to get personal financial advice to help you decide what’s best.

 

If you have not claimed your super within six months of leaving Australia, your superannuation fund will transfer your super to the ATO. They will hold your unclaimed super until you contact them to claim it.

 

For further information about claiming your super under a Temporary Resident’s Visa, please check out the ATO’s Temporary Residents and Super page.

 

You may also wish to have a look at QSuper’s Temporary Resident leaving Australia page.

 

Thanks,

Hailey

ATO Certified

Community Support

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Hi @jeechoi4

 

Thanks for your question.

 

QSuper have given you some good information. It is important to note that the 65% tax rate will only be applied to your departing Australia super payment (DASP) where it includes amounts attributable to superannuation contributions made under a working holiday maker (WHM) visa.

 

What this means is that each super fund will assess your application and determine the tax rate to apply based on the information it holds in relation to your contributions. If the super fund holds contributions relating to your 2012-13 WHM visa, they will withhold 65% from the entire payment. If not, the lesser rates will apply.

 

Whether you make your application now or later won't change how much tax will need to be withheld.

 

For more information about DASP for working holiday makers, refer to our website.

 

Hope this helps.

 

Thanks,

 

ChrisR

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