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Re: Dasp tax rate for international students

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Newbie

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Hello,
I have departed from australia and i did my dasp online application.
I am wondering how much money i will get back at the end.
For example is someone has in the account 6000 dollars,what is the final amount that will get??
I tried to understand and calculate it but its confusing with the rates and the components.
Thank you

Thank you
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Best answer

Community Support

Replies 2

Hi @Vas86,

 

Thanks for posting.

 

The tax rate that is applied to your departing Australia superannuation payment (DASP) depends on:

 

Your super can have two components – tax-free and taxable.

 

Generally speaking, the tax-free component is made up of ‘after-tax’ contributions you may have made to super (e.g. if you made personal contributions to your super).

 

The taxable component is usually made up of ‘before-tax’ contributions (such as the compulsory super contributions your employer makes for you) as well as the earnings your super has made while it’s in the super fund.  Your taxable component may have a taxed element and/or an untaxed element – the majority of people have a taxed element.

 

If you’re unsure what components your super is made up of, you can ask your super fund.

 

When working out the tax rate your DASP will be subject to, the visa/s you’ve held are also considered.

 

If you’ve never held a WHM visa, DASP would be subject to the DASP ordinary tax rates (i.e. 35% on the taxed element).

 

If the only visa you’ve held is a WHM visa, your DASP will be subject to the DASP WHM tax rate (i.e. 65%).

 

If you’ve had a WHM visa and another visa, then it depends on whether your super balance includes amounts that are related to contributions made to your super while you held the WHM visa.  If your super balance:

  • does, the DASP WHM tax rate applies
  • doesn’t, the DASP ordinary tax rates apply.

 

Your super fund will determine which tax rate to withhold based on your visa information in your DASP application.

 

So we’ll use your example of $6,000.  We’ll assume the whole $6,000 is made up of taxed element.

 

If the:

  • DASP ordinary tax rates apply, then an amount of $2,100 tax (35% of $6,000) would be withheld, which means you’d receive a $3,900 refund.
  • DASP WHM tax rates apply, then an amount of $3,900 tax (65% of $6,000) would be withheld which means you’d receive a $2,100 refund.

Thanks, NicM.

3 REPLIES 3
Highlighted

Best answer

Community Support

Replies 2

Hi @Vas86,

 

Thanks for posting.

 

The tax rate that is applied to your departing Australia superannuation payment (DASP) depends on:

 

Your super can have two components – tax-free and taxable.

 

Generally speaking, the tax-free component is made up of ‘after-tax’ contributions you may have made to super (e.g. if you made personal contributions to your super).

 

The taxable component is usually made up of ‘before-tax’ contributions (such as the compulsory super contributions your employer makes for you) as well as the earnings your super has made while it’s in the super fund.  Your taxable component may have a taxed element and/or an untaxed element – the majority of people have a taxed element.

 

If you’re unsure what components your super is made up of, you can ask your super fund.

 

When working out the tax rate your DASP will be subject to, the visa/s you’ve held are also considered.

 

If you’ve never held a WHM visa, DASP would be subject to the DASP ordinary tax rates (i.e. 35% on the taxed element).

 

If the only visa you’ve held is a WHM visa, your DASP will be subject to the DASP WHM tax rate (i.e. 65%).

 

If you’ve had a WHM visa and another visa, then it depends on whether your super balance includes amounts that are related to contributions made to your super while you held the WHM visa.  If your super balance:

  • does, the DASP WHM tax rate applies
  • doesn’t, the DASP ordinary tax rates apply.

 

Your super fund will determine which tax rate to withhold based on your visa information in your DASP application.

 

So we’ll use your example of $6,000.  We’ll assume the whole $6,000 is made up of taxed element.

 

If the:

  • DASP ordinary tax rates apply, then an amount of $2,100 tax (35% of $6,000) would be withheld, which means you’d receive a $3,900 refund.
  • DASP WHM tax rates apply, then an amount of $3,900 tax (65% of $6,000) would be withheld which means you’d receive a $2,100 refund.

Thanks, NicM.

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I'm new

Replies 1

Hi NicM,

 

Thanks for the response. 

May I ask, what's the difference in these elements "Your taxable component may have a taxed element and/or an untaxed element – the majority of people have a taxed element"

 

I can see that there are tax contributions going out from my super account whenever a super contribution was made from my employer?

 

Thanks

 

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Community Manager

Replies 0

Hi @Mukessh

 

The taxed element of the taxable component includes amounts that the fund has paid tax on, for example, taxable contributions and fund earnings.

 

The untaxed element of the taxable component includes amounts (other than the tax-free component) that the fund hasn't paid tax on. This happens when part of the super lump sum comes from a scheme that's not subject to tax.