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Re: Leaving Australia and held Working holiday and 457 visa

Newbie

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Replies 7

Hi,

 

I am planning on leaving australia and struggling to understand the information given on what tax rate would apply to my super.

I came in 2016 on a holiday work visa which I had for a year before I applied for a skilled work visa 457 which meant I was on a bridging visa for over 12 months before approved, I have now since then been on 457.

What tax rate will be applied to my now rather large super which I am meant to live on when I grow old back in my home country as I am not able to stay in this country?

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Most helpful response

ATO Community Support

Replies 6

Hi @EllinoreW

 

The DASP tax rate will be determined by each super fund individually, as each fund is making a separate payment.

 

If the super fund making the payment has any contributions made for you while you held a working holiday maker visa (417 or 462), that entire DASP will be taxed at the working holiday maker rate. If it doesn't, then the normal rates will apply.

 

Your bridging visa doesn't count as an "associated bridging visa" since it was not from a working holiday maker visa to another working holiday maker visa.

 

You can read about DASP for working holiday makers on our website.

7 REPLIES 7

Most helpful response

ATO Community Support

Replies 6

Hi @EllinoreW

 

The DASP tax rate will be determined by each super fund individually, as each fund is making a separate payment.

 

If the super fund making the payment has any contributions made for you while you held a working holiday maker visa (417 or 462), that entire DASP will be taxed at the working holiday maker rate. If it doesn't, then the normal rates will apply.

 

Your bridging visa doesn't count as an "associated bridging visa" since it was not from a working holiday maker visa to another working holiday maker visa.

 

You can read about DASP for working holiday makers on our website.

Newbie

Replies 1

Please clarify if I should understand this as that all my 5 years of contributions, although only one year was on a Holiday working visa is going to be taxed at 65%?

Newbie

Replies 0

Also I would want to understand how this is possible when I have myself out of my own salary paid for my super.

It is like you are stealing my salary!

ATO Community Support

Replies 3

Hi @EllinoreW

 

As per the response from @BlakeATO, if all of the 5 years worth of contributions were made to the same fund then yes it will be taxed at the higher rate. Unfortunately, although you've paid the super out of your salary, it's still based on the contributions being made while you were on the working holiday maker visa. We understand this isn't the reponse you were wanting. Along with the link in our previous response, you can find some more information on the DASP tax rate on our website. 

 

Hope this helps. 

Newbie

Replies 2

So if I change my superfund I will be charged the lower tax rate?

ATO Community Support

Replies 1

Hi @EllinoreW

 

If you transfer your super across to another fund, the super fund receives information about when the contributions were made. This means the DASP rate would still apply.

 

Your superannuation is paid in addition to your salary and wages, so it isn't taken from your salary. The tax rate for working holiday maker DASP is outlined in legislation. It's covered in section 5(3) of Superannuation (Departing Australia Superannuation Payments Tax) Act 2007. While we administer the tax and super laws, we don't write them, so it isn't something we can help change or alter. That's something you'd need to speak with a local member of parliament for help with.

 

You can read section 5 of Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 on our legal database.

Newbie

Replies 0

That is not in accordance with the advice I was given on the phone the other day when I called Ato - Super on 131 020.

I was told I can move partial amount out of my old super fund to my new. I am going to move all the contributions that was made after I was no longer on my working holiday visa which will be based on my superfund transaction statement. Seems like the ATO is not completely allinged here however I have kept a note of the reference number of that call and will trust that moving out the partial fund will mean my new super fund will be taxed at the lower rate.