Departing Australia superannuation payment
Departing Australia superannuation payment
If you’re a temporary resident of Australia, how to claim your superannuation when you leave.
Eligibility for Departing Australia superannuation payment (DASP)
If you’ve worked in Australia on a temporary visa, you may have accumulated superannuation that has been paid by your employer under the compulsory super guarantee.
You may be eligible to have this super (and any earnings and other contributions) paid to you (less tax) as a departing Australia superannuation payment (DASP) after you leave.
Generally, you can claim a DASP if all the following apply:
- you accumulated superannuation while working in Australia on a temporary resident visa issued under the Migration Act 1958 (excluding Subclasses 405 and 410)
- your visa has ceased to be in effect (expired or cancelled)
- you have left Australia and you do not hold any other active Australian visa
- you’re not an Australian or New Zealand citizen, or a permanent resident of Australia (if you’re a New Zealand citizen leaving Australia permanently, you may be able to transfer your super to New Zealand).
While you can’t claim a DASP until after you’ve left Australia, it is strongly recommended you get all the information you need and start your application before you leave. It may be difficult for you to start the process once you have left.
Locating your super
If you’ve worked for multiple employers, you may have more than one super account and these may be with different super funds.
If you’re not sure where your super is, you can search for it by:
- using the DASP online application system once you’ve met eligibility requirements and provided your TFN
- using ATO online services or the ATO app (after creating a myGov account and linking to the ATO)
- speaking to us or calling the ATO
Employers are required to make regular super contributions, so you should check with your employer that all contributions have been paid into your fund before submitting your application.
If you don’t apply for your DASP, your super fund will transfer your super money to the ATO as unclaimed super money, if both:
- it has been 6 months or more since you left Australia
- your visa has ceased to be in effect.
You may be able to claim ATO-held super as DASP.
How to claim your super
You can apply for a DASP via either:
- the DASP online application system – for both super fund and ATO-held super
- a paper form
- for super held by a super fund, use Application for a departing Australia superannuation payment form (NAT 7204) – send this form directly to the super fund
- for ATO-held super, use Application for payment of ATO-held superannuation money (NAT 74880) – send this form to the address listed on the form
- by authorising someone to claim on your behalf.
Before submitting your DASP application, check with your employer to confirm they have paid all the super they are required to.
Online applications
You can use the DASP online application system free of charge
The DASP online system will automatically confirm your immigration status online with the Department of Home Affairs – you don’t need to apply for a Certification of Immigration Status from the Department of Home Affairs unless directed by your super fund. You can start and save your online application while you are still in Australia and have all the relevant information handy.
You can only submit a DASP application when you’ve left Australia and do not hold an active visa. For further information on visa cessation, including cancellation, once you have departed Australia, see Cancelling a visa (homeaffairs.gov.au).
Take note of the information you enter when you start your online application. You’ll need the same details to resume your saved application after you leave Australia.
Where the value of your super money is $5,000 or more, your super fund may require certified copies of your proof of identification documents.
It’s much easier to certify documents while you are in Australia. As there are specific rules on who can certify documents, we recommend you do this before you leave. Check with your super fund to confirm what documents are required.
Paper applications
For super held by a super fund, you need to complete the Application for departing Australia superannuation payment form (NAT 7204) and send one to each of your super funds.
If you’re applying on a paper form, your super fund may charge you a fee depending on the value of your super money. Your super fund will also require certified copies of your proof of identification documents.
It’s much easier to certify documents while you are in Australia. As there are specific rules on who can certify documents, we recommend you do this before you leave. Check with your super fund to confirm what documents are required.
For ATO-held super, use the Application for payment of ATO-held superannuation money (NAT 74880) and send it directly to the ATO. There are no costs for paper applications sent to the ATO.
Super value of $5,000 or more
For super accounts with a balance of $5,000 or more, paper applications to super funds may require a Certification of Immigration Status from Home Affairs, which charges a fee to issue this certificate. They will email it directly to you and the super funds you nominate.
Request a Certificate of Immigration Status from Home Affairs using Form 1194 Certification of Immigration Status.
Super value of less than $5,000
For super accounts with a balance of less than $5,000, you can provide evidence that you have left Australia and your visa has expired without completing the Certification of Immigration Status.
Ask your super fund what evidence you need to provide. If you’re not able to provide the evidence yourself, your super fund may ask you for a Certification of Immigration Status from Home Affairs before they can process your application.
If you have held a WHM visa and haven’t applied for a Certification of Immigration Status from Home Affairs, you’ll need to provide your visa information on the paper application. This may be checked against Home Affairs records and your application may take longer to process if it doesn’t match.
Authorising someone to claim on your behalf
You can authorise someone else to apply for your DASP. They can act on your behalf and update your information, so consider carefully who you allow to represent you.
Your representative will need a written authority from you before they can submit your DASP application.
You can nominate either:
- a tax agent with full registration or conditional registration for the purpose of claiming DASP with the Tax Practitioners Board
- another person if you use a DASP paper form.
Registered tax agents can claim DASP on your behalf through the DASP online intermediary application system.
Anyone applying on your behalf using a paper form will have to satisfy your super fund they have the authority to claim on your behalf. Ask your super fund what documents they require.
Applying for super of a deceased temporary resident
If you believe you may be entitled to receive the super benefits of a deceased temporary resident, you can’t use the application system to apply.
To apply for super held by a fund for a deceased temporary resident, contact the fund directly.
If you believe you’re entitled to claim super held by the ATO for a deceased temporary resident, complete the relevant ATO-held super form. You’ll also need to complete the Application for payment of ATO-held superannuation money for a deceased person cover sheet (NAT 75530) and send it directly to the ATO.
Returning to Australia after claiming DASP
Returning to Australia later on a new visa
Claiming a DASP will not affect any future visa applications.
Returning to Australia permanently
If you’ve returned to Australia as a permanent resident and your super fund has transferred your super to the ATO as ‘former temporary resident – unclaimed super’, you can either:
- transfer this money back to an Australian super fund
- apply for it to be paid to you directly, if you’ve met all the eligibility requirements.
Either way, the payment is still considered a DASP and is subject to the relevant DASP tax rate.
To transfer your super back to a super fund, phone the ATO’s superannuation enquiries line on 13 10 20.
To apply for a DASP when you have returned to Australia permanently, use the Application for payment of ATO-held superannuation money (NAT 74880) and send it directly to the ATO.
How and when DASP is paid
Your DASP will generally be paid within 28 days of your completed application being received. It may take longer if you submit an incomplete application or are asked to provide additional supporting documents.
There are 3 payment options:
- electronic funds transfer (EFT) to an Australian bank account
- Australian dollar cheque
- international money transfer (IMT) – only for applications to super funds.
Not all super funds offer IMT. Fees and charges (including currency conversion) may apply, so check with your fund to see what payment options are available.
EFT is usually the most effective payment option, and you should consider keeping your Australian bank account open to receive your DASP.
Confirm with your Australian bank that you will be able to arrange the money to be paid to an account in your home country.
For ATO-held super, you can only choose EFT to an Australian bank account in your name or a cheque.
How DASP is taxed
A final DASP tax will be withheld from your payment when it is made. The payment may be made up of 2 components, taxable and tax free.
Different tax rates apply to working holiday maker (WHM) visa holders.
DASP tax rates
| Payment component | DASP ordinary tax rate (for non-WHM) | DASP WHM tax rate |
|---|---|---|
| Tax-free component | Nil | Nil |
| Taxable component – taxed element | 35% | 65% |
| Taxable component – untaxed element | 45% | 65% |
The payer of the DASP must issue you a DASP payment summary within 14 days of making the payment. The DASP payment summary will tell you the amount of DASP tax that was withheld and the amount paid to you.
DASP payment summaries issued by the ATO will have an ‘H‘ indicator at the DASP type when the DASP WHM tax rate was applied. The indicator will be blank where the DASP ordinary tax rate was applied.
How tax rates are applied
The DASP tax rate will be determined by each super fund individually, as each fund is making a separate payment.
Each super fund will assess your application and determine the tax rate to apply based on the information it holds in relation to your contributions.
If you have held a WHM visa, your super fund will check whether the DASP includes amounts attributable to super contributions made while you held a WHM visa. If it does, the fund will apply the DASP WHM tax rate. If it doesn’t, the fund will apply the DASP ordinary tax rates.
The different DASP tax rates that may apply are summarised below:
- If you have never held a WHM visa – the DASP ordinary tax rates apply.
- If you have only ever held a WHM visa and associated bridging visas – the DASP WHM tax rate applies.
- If you held both a WHM visa and another type of visa – the tax rate that applies will depend on whether the DASP includes amounts attributable to super contributions made while you held a WHM visa. If it does, the DASP WHM tax rate will apply to the entire amount. If it does not, the DASP ordinary tax rates will apply.
It doesn’t matter when you held a WHM visa. The DASP WHM tax rate applies if you have ever held a 417 or 462 and associated bridging visas and the DASP includes amounts attributable to super contributions made while you held the relevant visa.
The DASP WHM tax rate applies to the entire payment, including any super you may have earned while working under a different visa.
If you believe tax has been withheld incorrectly
If you believe your super fund has withheld an incorrect amount of tax from your DASP, you should contact your super fund and request a refund. You need to do this in the same financial year that your DASP was paid.
If your request for a refund is made after the end of the financial year in which your DASP was paid, or if your DASP was paid by us, and you believe an incorrect amount of tax has been withheld from your DASP, you can lodge a refund request with us in writing.
You will need to explain your circumstances and attach evidence of the incorrect withholding.
Write to the ATO at:
Australian Taxation Office
PO BOX 1032
ALBURY NSW 2640
If we decide not to refund an amount (in whole, or in part), this is a taxation decision to which you can object.
In addition to the above options, if your DASP was paid by us, you can also lodge an objection on the basis that an amount was incorrectly withheld, as provided for by section 20P of the Superannuation (Unclaimed Money and Lost Members) Act 1999.
Don’t include DASP in your tax return
DASP does not form part of your assessable income for Australian tax purposes.
A final tax is withheld from DASP when the payment is made – so don’t include either amounts in your tax return.
What are working holiday maker visas?
You are a WHM if you hold one of the following visas:
- a 417 (Working Holiday) visa
- a 462 (Work and Holiday) visa
- an associated bridging visa, that is
- a bridging visa issued immediately after a 417 or 462 visa and immediately before a second 417 or 462 visa
- a bridging visa issued immediately after a 417 or 462 visa with no other visa issued after this bridging visa.
Source: ATO
Source:
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/newsroom/smallbusiness/ .
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