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DASP - Working Holiday Maker

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Hello, Sorry if this has been asked before. Currently, I am paying a 15% tax quarterly on the super contributions from my employer. I am trying to find out information about the DASP. I read this: "A final DASP tax will be withheld from your payment when it is made. The payment may be made up of two components – a tax-free component, and a taxable component (that may have a taxed element and/or an untaxed element)." I am trying to better understand what component I fall under - either the nil for the tax-free component or 65% for the taxable component. How does one determine if they will incur this final tax? Does everyone who has held a working holiday visa get this tax? Thank you!

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Hi katkaz

 

Contributions made by your employer will be a taxable component (taxed element).

 

Earnings in the super account will also be a taxable component. (taxed element)

 

So it seems likely that the whole payment will be subject to the 65% tax rate.

 

A tax-free component relates to personal contributions made on which income tax has already been paid. ie after-tax money that's been paid into your bank account that you then decide to contribute to your super account.

 

The 65% tax rate applies if any part of the amount being released is attributable to contributions made while the person held a working holiday visa.

 

I'm an ATO employee voluntarily providing my time here

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Most helpful response

ATO Certified Response

Devotee

Replies 0

Hi katkaz

 

Contributions made by your employer will be a taxable component (taxed element).

 

Earnings in the super account will also be a taxable component. (taxed element)

 

So it seems likely that the whole payment will be subject to the 65% tax rate.

 

A tax-free component relates to personal contributions made on which income tax has already been paid. ie after-tax money that's been paid into your bank account that you then decide to contribute to your super account.

 

The 65% tax rate applies if any part of the amount being released is attributable to contributions made while the person held a working holiday visa.

 

I'm an ATO employee voluntarily providing my time here