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Questions concerning new legislation and DASP fees

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Newbie

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Hi, the new legislation which will kick in July says that "

Superannuation accounts which have not received a contribution for 16 months and have balances below $6,000 are known as inactive low balance accounts. These will be transferred to the Australian Taxation Office (ATO), who will attempt to auto-consolidate the amounts into the member’s active account, if they have one and if the combined balance will be greater than $6,000. An account will be classified as inactive if, over a 16-month period, either no contributions have been received or the member has not otherwise engaged with the account by, for example, requesting a change to their investment strategy or insurance coverage.If the ATO cannot auto-consolidate a balance into a member’s active account, the balance will remain with the ATO until it can be validly claimed."

 

My question is :If a person has already left Australia and already has his permanent residency visa expired because he is working overseas, can he apply for DASP to retrieve back all his superannuation monies and what is the taxable amount does he have to pay minus the currency fluctuation transaction ? Is it still 65% of the superannuation amount ?

 

Second question is will the person's TFN continue to exist after he has applied DASP or will he need to request a new TFN if he is returning to Australia after he has applied DASP and retrieved the monies ? Also, will there be a difference in bank charges/fees between having a TFN and not having a TFN if he still has a bank account in Australia ?

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ATO Certified

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Hi @rodsteiner,

 

Welcome to our Community!

 

The new change in legislation is aimed to reunite individuals with their super. This will be done by super funds transferring inactive low balance account to us so we track down the individual it relates to and hold it on their behalf or transfer it to an active account. This is known as ATO-held super.

 

If you meet certain eligibility criteria, you can claim your superannuation back via a "Departing Australia superannuation payment" (DASP). You can claim a DASP if you:

  • visited and worked in Australia on a temporary visa (excluding subclasses 405 & 410)
  • have cancelled your visa or it has ceased to be in effect (it’s expired or has been cancelled)
  • have left Australia and you are not an Australian or New Zealand citizen, or a permanent resident of Australia.

Your total DASP will be subject to a non-refundable 65% tax rate if:

  • you have held a 417 or 462 visa, and
  • any component your DASP includes super contributed for you while working under either of these visas or a related visa.

You can claim your DASP via the DASP online application system or via a paper application form.  You'll need to provide the following information on your application:

  • passport details
  • visa details
  • information about your superannuation accounts.

If you later return to Australia you don't need to apply for a new TFN. The TFN you have is for life so you'll need to keep records for future reference.

 

If you're a non-resident of Australia for tax purposes and have an Australian bank account that earns interest, you'll need to provide your TFN and your overseas address to the bank so they withhold the correct rate of tax. If you don't, they may withhold tax at the higher rate of 47%.

 

If  you have further queries you can phone us from within Australia on 13 28 61 between 8am - 6pm, Monday to Friday or phone (or Skype) us from outside Australia on +61 2 6216 1111 between 8:00am and 5:00pm (AEST) Monday to Friday. When you phone, have your tax file number ready and any documentation you may have received from us to help us establish your identity. Let our switchboard operator know you are calling from overseas, and we may be able to arrange a call-back.

 

Thanks, JodieH.

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @rodsteiner,

 

Welcome to our Community!

 

The new change in legislation is aimed to reunite individuals with their super. This will be done by super funds transferring inactive low balance account to us so we track down the individual it relates to and hold it on their behalf or transfer it to an active account. This is known as ATO-held super.

 

If you meet certain eligibility criteria, you can claim your superannuation back via a "Departing Australia superannuation payment" (DASP). You can claim a DASP if you:

  • visited and worked in Australia on a temporary visa (excluding subclasses 405 & 410)
  • have cancelled your visa or it has ceased to be in effect (it’s expired or has been cancelled)
  • have left Australia and you are not an Australian or New Zealand citizen, or a permanent resident of Australia.

Your total DASP will be subject to a non-refundable 65% tax rate if:

  • you have held a 417 or 462 visa, and
  • any component your DASP includes super contributed for you while working under either of these visas or a related visa.

You can claim your DASP via the DASP online application system or via a paper application form.  You'll need to provide the following information on your application:

  • passport details
  • visa details
  • information about your superannuation accounts.

If you later return to Australia you don't need to apply for a new TFN. The TFN you have is for life so you'll need to keep records for future reference.

 

If you're a non-resident of Australia for tax purposes and have an Australian bank account that earns interest, you'll need to provide your TFN and your overseas address to the bank so they withhold the correct rate of tax. If you don't, they may withhold tax at the higher rate of 47%.

 

If  you have further queries you can phone us from within Australia on 13 28 61 between 8am - 6pm, Monday to Friday or phone (or Skype) us from outside Australia on +61 2 6216 1111 between 8:00am and 5:00pm (AEST) Monday to Friday. When you phone, have your tax file number ready and any documentation you may have received from us to help us establish your identity. Let our switchboard operator know you are calling from overseas, and we may be able to arrange a call-back.

 

Thanks, JodieH.