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when applying for DASP

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I lived as a resident in Australia for 9 years of which the first 10 months on a WHM visa and afterwards on 457 and finally 186 PR visa. i have applied for DASP yet am facing the full amount to be taxed at 65%. i know there is loop hole but unsure where to find it. Surely the full amount isnt subject to 65% and just the amount contributed while on WHM should be taxed at 65%. how to inform the Super fund? they hide behind ATO when wanting to tax and send funds. The law was changed in 2017 regards this howeveer i was on my WHM in 2009/2010 only (at which time the tax rate was significantly lower in the 35-38% range). After 2010 was on Skilled worker 457 visa and finally as PR 186 as resident, i left in 2017 before the rule change. My Sub class 186 PR status was revoked in 2019

 

Is it the law that the super can be taxed at different rates for the duration of WHM visa and the subsequent residency 457 and 186 visa's?

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Hi @danshepherdchef

 

If there are any contributions made to your super fund account while you hold a WHM visa, your entire payment from the fund will have WHM tax rate (65%) applied. This is covered in section 5(3) of Superannuation (Departing Australia Superannuation Payments Tax) Act 2007. It is legislative that the entire DASP be taxed under WHM rates, not that different portions be taxed differently.

 

Each DASP is paid by the super fund. If you establish another super account with a different fund, you can have a different tax rate applied to each payment received. This, while not technically a loophole, may be what you're thinking of. However, you can't do this retrospectively.

 

The law was changed in 2017 for any DASPs claimed after this time. It's about when you claim your Departing Australia Superannuation Payment, not about when the super was earned.

 

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

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @danshepherdchef

 

If there are any contributions made to your super fund account while you hold a WHM visa, your entire payment from the fund will have WHM tax rate (65%) applied. This is covered in section 5(3) of Superannuation (Departing Australia Superannuation Payments Tax) Act 2007. It is legislative that the entire DASP be taxed under WHM rates, not that different portions be taxed differently.

 

Each DASP is paid by the super fund. If you establish another super account with a different fund, you can have a different tax rate applied to each payment received. This, while not technically a loophole, may be what you're thinking of. However, you can't do this retrospectively.

 

The law was changed in 2017 for any DASPs claimed after this time. It's about when you claim your Departing Australia Superannuation Payment, not about when the super was earned.

 

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