Superannuation:: Applying for Your Departing Australia Superannuation Payment (DASP)

Hello, this is your tax and super specialist, P&C Tax Professionals.

Today’s blog post will inform you on the Departing Australia Superannuation Payment (DASP) system that is currently in place within Australia.

<Eligibility criteria>

In terms of the eligibility criteria, you are more than welcome to apply for the DASP if you satisfy the following conditions:

> you have accumulated superannuation during your time working in Australia while holding a temporary resident visa

> your visa is no longer active due to it being expired or cancelled

> you have departed Australia and you no longer hold any other active Australian visa

> you are not classified as a citizen of Australia or New Zealand and you are not a permanent resident of Australia

<Cancelling your temporary visa>

If you have already departed Australia and you are therefore planning to apply for your DASP but your temporary resident visa is still active, you can request for an early cancellation of your active temporary visa.

This can be done through the ImmiAccount service which you can access via the following link.

Link to ImmiAccount: https://online.immi.gov.au/lusc/login

<Processing times for DASP>

Generally, your DASP will be processed and paid to you within 28 days from the date you complete and lodge your DASP application. However, please keep in mind that there is a possibility that it will take longer if your application is incomplete or if your super fund has requested for additional supporting documentations to be submitted.

When choosing your payment options, there are three options available:

> Electronic funds transfer (EFT) to your nominated Australian bank account

> Australia dollar cheque - as the cheque will be sent out to your overseas address, please make sure that the address is accurate

> International money transfer (IMT) – not available for ATO-held super payments.

EFT is normally the most convenient and effective payment option out of the three which is why it is highly recommended that you keep your Australian bank account open in order to receive your DASP when you apply for it.

<How DASP is taxed>

One of the most frequently asked questions by our clients is whether you will be able to receive a full refund of your super. Unfortunately, the answer is no. This is because a DASP tax must be withheld before the final super payment can be issued to the recipient. Please refer to the table below summarising the DASP tax rates as set out by the ATO:

If you are holding a temporary resident visa (excluding the working holiday visa), your super balance will be taxed at 35% while the remaining 65% of your super balance will be refunded to you when you lodge your DASP application.

If you are a Working Holiday Maker (WHM), your super balance will be taxed at a rate of 65% and the remaining 35% of your super balance will be refunded to you when you apply for your DASP.

However, you may be asking, what about those people who have held a working holiday visa but later on also held another temporary visa during their stay in Australia. If this is the case:

> If your DASP includes amounts attributable to super contributions that have been made while you were holding a WHM visa --> the DASP WHM tax rate applies

> If your DASP does not include amounts attributable to super contributions that have been made while you were holding a WHM visa --> the DASP ordinary tax rates applies

Well, that sums it up for now but if you have any other questions relating to tax or super, feel free to contact us through our Official Facebook Page (P&C Tax Professionals – Australia) or via our email address at pnctax@naver.com.

Thank you and bye for now!