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Superannuation pay out

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Newbie

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Hi,
I am applying for my superannuation back after nearly 3.5 years on a 457 visa. My sponsorship visa application process was underway before I moved to Australia but unfortunately didn’t come through in time therefore I had to apply for a WHV so that O could enter the country and start work. I was on a WHV for circa 6 weeks waiting on the sponsorship visa to come through and I am being told that because of those 6 weeks I will be charged 65% on all of my super earned over the 3.5 years. Is there any way around this? It seems ridiculously unfair.
Thanks
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Hi @Sazzlesmck

 

Thanks for your patience.

 

Depending on your circumstances, all of your departing Australia super payment (DASP) could be taxed at 65%. This rate will only apply if your DASP includes amounts attributable to superannuation contributions made under a working holiday maker (WHM) visa. There is no way around this.

 

You are a WHM if you hold (or have held) one of the below visas:

  • a 417 (Working Holiday) visa
  • a 462 (Work and Holiday) visa
  • an associated bridging visa.

 

For more information, you can refer to the DASP for working holiday makers page on our website.

 

You have mentioned that you were on a WHV for the first six weeks of your time is Australia. If the WHV was a 417, 462 or associated bridging visa, while it may have only been for six weeks, you were a WHM visa holder. If it wasn't, the DASP WHM 65% tax rate doesn't apply.

 

If you have held a WHM visa, your super fund will check whether the DASP includes amounts attributable to super contributions made while you held a WHM visa. If it does, the super fund will apply the DASP WHM tax rate. If it doesn’t, the super fund will apply the DASP ordinary tax rates.

 

For more information about how DASP is taxed, refer to our website.

 

If you were a member of multiple super funds, the DASP tax rate will be determined by each super fund individually, as each super fund is making a separate payment. This can result in one DASP being taxed at 65% and another being taxed at 35%.

 

We can't authorise super funds to withhold a lesser rate where the 65% rate applies, even if there was only one contribution attributable to a WHM visa.

 

Hope this helps.

 

Thanks,

 

ChrisR

2 REPLIES 2
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Community Manager

Replies 0

Hi @Sazzlesmck 

 

Thanks for your question, we are doing some research and will get back to you with an answer shortly.

 

 

Highlighted

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @Sazzlesmck

 

Thanks for your patience.

 

Depending on your circumstances, all of your departing Australia super payment (DASP) could be taxed at 65%. This rate will only apply if your DASP includes amounts attributable to superannuation contributions made under a working holiday maker (WHM) visa. There is no way around this.

 

You are a WHM if you hold (or have held) one of the below visas:

  • a 417 (Working Holiday) visa
  • a 462 (Work and Holiday) visa
  • an associated bridging visa.

 

For more information, you can refer to the DASP for working holiday makers page on our website.

 

You have mentioned that you were on a WHV for the first six weeks of your time is Australia. If the WHV was a 417, 462 or associated bridging visa, while it may have only been for six weeks, you were a WHM visa holder. If it wasn't, the DASP WHM 65% tax rate doesn't apply.

 

If you have held a WHM visa, your super fund will check whether the DASP includes amounts attributable to super contributions made while you held a WHM visa. If it does, the super fund will apply the DASP WHM tax rate. If it doesn’t, the super fund will apply the DASP ordinary tax rates.

 

For more information about how DASP is taxed, refer to our website.

 

If you were a member of multiple super funds, the DASP tax rate will be determined by each super fund individually, as each super fund is making a separate payment. This can result in one DASP being taxed at 65% and another being taxed at 35%.

 

We can't authorise super funds to withhold a lesser rate where the 65% rate applies, even if there was only one contribution attributable to a WHM visa.

 

Hope this helps.

 

Thanks,

 

ChrisR