Superannuation

Please note that the story below at the bottom is not correct anymore since January 2017, as the government has made many changes.

From 1 July 2017, departing Australia superannuation payments (DASPs) made to Working Holiday Makers (WHMs) will be taxed at 65%.

If you hold or have held a 417 (Working Holiday) or 462 (Work and Holiday) visa, you are classified as a WHM.

This change is related to a new income tax rate for WHMs which was introduced by the Australian Government in December 2016.

New DASP law

Your total DASP will be subject to the 65% tax rate where:

  • you hold or have held a 417 or 462 visa and had super contributed for you while working under either of these visas, and
  • DASP is paid to you on or after 1 July 2017.

The 65% rate will apply to your total DASP amount, including any super you may have earned while working under a different visa.
Payments made before 1 July 2017 will be taxed at the current rate, which is 38% for a taxed-element.

DASP applications are generally processed within 28 days. You can only submit an application once you have left Australia and your visa is cancelled or expired.

If you are a WHM and are considering submitting a DASP application, you may want to do so at your earliest convenience to allow super funds with the best opportunity to process and pay your claim.

Keep updated via the ATO website:

https://www.ato.gov.au/individuals/super/accessing-your-super/working-holiday-makers/

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Many Working Holiday Visa holders come to Australia and when they start their first job are asked for their ‘Super’ details and have no idea what it is.

Super or Superannuation is the Australian equivalent of a pension so to speak and the way in which it works is as follows – when you are employed and are earning in excess of $450 per month with one employer they are legally obliged to make super contributions on your behalf at a rate of 9.5% of your gross salary to a nominated fund

There are 1000’s of super funds in Australia and when you arrive to Australia there are a number of ways in which you can open one, many of the banks here at the moment are offering super accounts when you are opening up your normal bank accounts or indeed when you start your first job your employer will be able to help if getting you set up also – the key thing to remember here is that -when you have a fund open - use the same fund for all jobs.

The reason that you want to keep all your super in the one account is that this money is again something that you can claim when you are leaving Australia permanently (provided you are not a permanent resident) and by keeping the contributions in one fund for the duration of your time in Australia it will mean that the process of claiming the funds back will be easier as well as saving you money during your stay as each fund will charge you management fees

Again we have partnered up with taxback.com to assist all clients arrange their super refunds.

The requirements for filing a super refund are the below:

  • You must have departed Australia
  • You must have an expired temporary visa (417, 457, student)
  • You must complete the appropriate fund exit forms
  • You must supply the required certified identity documents as per fund requirements

Depending on the fund that your super is with the process varies in terms of what documents are needed and this is where taxback.com come in – taxback.com would encourage all clients to come and visit them at one of their 6 Australian office locations (Sydney, Cairns, Melbourne, Perth, Darwin & Brisbane) or get in touch with them regarding your super refund before you leave Australia so that they can make sure all paperwork is correct and you can head home without any worries!

In terms of paying this refund to you - taxback.com will be able to send the funds to your home account so there is no need to worry about keeping your Australian

The processing times for a super refund are 12 to 14 weeks and the average refunds for working holiday makers filing with taxback.com is $3,380 – that’s a lot so get in touch today and see what you are due! Register for a call back and get started today!