Superannuation:: 2024 A Complete Guide to Your Superannuation Refund

Hello, this is your tax accountant, P&C Tax Professionals.

Embarking on a new chapter of life outside the sunburned country comes with its share of excitement and logistical challenges, and one crucial aspect often overlooked is the Departing Australia Superannuation Payment (DASP). Whether you are bidding farewell to the Land Down Under after a work stint, a study program, or a temporary residency, understanding the ins and outs of DASP is essential. In this blog post, we delve into the intricacies of this financial facet, decoding the eligibility criteria, ways to claim your super refund, unravelling the tax rates that are attached to your superannuation payment, and providing useful insights to ensure you make the most of your Departing Australia Superannuation Payment. So, as you prepare to set sail into new horizons, let’s ensure your superannuation journey concludes with the financial empowerment you deserve.

<DASP Eligibility Criteria>

Generally, eligibility for a Departing Australia Superannuation Payment (DASP) is contingent upon meeting the following criteria:

-     You have a superannuation balance that has been accumulating while you were working in Australia under a temporary resident visa granted by the Migration Act 1958 (excluding Subclasses 405 and 410).

-     Your visa has expired or has been cancelled (you can check your visa status and expiry date through the official immigration site in Australia: https://immi.homeaffairs.gov.au/visas/already-have-a-visa/check-visa-details-and-conditions/overview).

-     You have departed Australia and you do not possess any active Australian visa.

-     You do not hold an Australian or New Zealand citizenship or a permanent residency visa in Australia (except for New Zealand citizens permanently leaving Australia, who might have the option to transfer their super to New Zealand).

While the application for a DASP can only be submitted after leaving Australia, it is strongly advised to gather all necessary information and commence the application process before departure. Starting the process post-departure may pose challenges, so proactive preparation is crucial for a smoother experience.

Coming back to Australia later under a new visa:

As long as you possess a suitable visa for re-entry and work in Australia, making a claim for a DASP will not affect your ability to return and work in the country. Therefore, you can still apply for your DASP even if you have plans to return to Australia in the future.

<Claiming Your Super>

There are 2 ways you can apply for your DASP:

1.    By yourself after contacting the Australian Taxation Office (ATO) OR

2.    By authorising someone else to make a claim on your behalf such as a registered tax agent whom you have nominated to take care of your tax and super affairs.

Prior to submitting your DASP application, make sure to check with your employer to ensure all the superannuation payments have been paid as required.

If your superannuation balance holds a value of $5,000 or above, your super fund might request certified copies of your identification documents. It is more convenient to get your documents certified while you are still in Australia. Given that there are specific regulations regarding who can certify documents, it is advisable to complete this process before your departure.

<DASP Tax Rates>

When your payment is issued, a final DASP tax will be deducted from your superannuation payment. The payment comprises of two parts, one taxable and the other tax-free. Different tax rates will be applied to individuals holding a working holiday maker (WHM) visa. See the table below for a summary of the DASP tax rates.

The DASP tax rate applied will depend on your visa history as outlined below:

-     If you have never held a WHM visa, the ordinary DASP tax rates will be applied. In this case, 35% of your super balance will be taxed and 65% of your super balance will be refunded to you.

-     If your visa history only includes a WHM visa and any associated bridging visas, the DASP WHM tax rate will be applied. This means, 65% of your super balance will be taxed and 35% of your super balance will be refunded to you.

-     If you held both a WHM visa and a different type of visa, the tax rate depends on whether the DASP includes contributions made during your WHM visa period. If it does, the entire amount is subject to the DASP WHM tax rate; otherwise, the ordinary DASP tax rates apply.

As we bring our discussion of the Departing Australia Superannuation Payment (DASP) to a close, we trust that this guide has given you some valuable insights into how the DASP system works in Australia. Departing Australia, whether temporarily or permanently, marks a significant chapter in your life, and ensuring that your superannuation is handled optimally is crucial. With this in mind, if you have any further queries, please feel free to reach out to us through our official Facebook Page (P&C Tax Professionals – Australia) or send us your enquiry to our email address (pnctax@naver.com).

Thank you and bye for now!