{"id":"C2007A00013","name":"Superannuation (Departing Australia Superannuation Payments Tax) Act 2007","slug":"superannuation-departing-australia-superannuation-payments-tax-act-2007","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"13 of 2007","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7958,"registerId":"commonwealth-C2007A00013-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences on 1 July 2007.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n  In this Act:\n\n> departing Australia superannuation payment has the same meaning as in the Income Tax Assessment Act 1997.\n\n> element taxed in the fund has the same meaning as in the Income Tax Assessment Act 1997.\n\n> element untaxed in the fund has the same meaning as in the Income Tax Assessment Act 1997.\n\n> excess untaxed roll‑over amount has the same meaning as in the Income Tax Assessment Act 1997.\n\n> roll‑over superannuation benefit has the same meaning as in the Income Tax Assessment Act 1997.\n\n> taxable component has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax free component has the same meaning as in the Income Tax Assessment Act 1997.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Imposition of tax","content":"#### 4 Imposition of tax\n\n  Tax payable on a departing Australia superannuation payment under subsection 301‑175(2) of the Income Tax Assessment Act 1997 is imposed.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Amount of tax","content":"#### 5 Amount of tax\n\n  (1) The amount of the tax is as follows:\n    (a) for the tax free component of the departing Australia superannuation payment—nil;\n    (b) for the element taxed in the fund of the taxable component of the departing Australia superannuation payment—35%;\n    (c) for the element untaxed in the fund of the taxable component of the departing Australia superannuation payment—45%.\n  (2) However, if the departing Australia superannuation payment is a roll‑over superannuation benefit paid under subsection 20H(2), (2AA) or (2A) of the Superannuation (Unclaimed Money and Lost Members) Act 1999, the amount of the tax for the element untaxed in the fund of the taxable component of the payment is:\n    (a) for the amount (if any) of the element that is not an excess untaxed roll‑over amount—45%; and\n    (b) for the amount (if any) of the element that is an excess untaxed roll‑over amount—nil.\n\n> Note: The tax for the excess untaxed roll‑over amount is set at nil to avoid double taxation of that amount, which is also subject to tax under the Superannuation (Excess Untaxed Roll‑over Amounts Tax) Act 2007.\n\n  (3) Despite subsections (1) and (2), if the departing Australia superannuation payment:\n    (a) is paid to a person on or after 1 July 2017; and\n    (b) includes amounts attributable to superannuation contributions made while the person was a working holiday maker (within the meaning of the Income Tax Rates Act 1986);\n  those subsections apply as if the percentages in paragraphs (1)(b) and (c) and (2)(a) were 65%.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Temporary budget repair levy","content":"#### 6 Temporary budget repair levy\n\n  (1) This section applies to departing Australia superannuation payments received in a temporary budget repair levy year.\n  (2) Increase:\n    (a) the percentage mentioned in paragraph 5(1)(b) by 3 percentage points; and\n    (b) the percentage mentioned in paragraph 5(1)(c) by 2 percentage points; and\n    (c) the percentage mentioned in paragraph 5(2)(a) by 2 percentage points.\n  (3) In this section:\n\n> temporary budget repair levy year has the same meaning as in section 4‑11 of the Income Tax (Transitional Provisions) Act 1997.","sortOrder":5}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act's scope is limited to imposing tax on departing Australia superannuation payments as defined by the Income Tax Assessment Act 1997. It does not expand the categories of persons covered; it specifies rates and limited exceptions/adjustments (roll‑overs, working holiday maker contributions, and temporary levy increases) rather than altering the underlying definition of who or what is in scope."},"complexity_factors":["Cross‑references to external definitions in the Income Tax Assessment Act 1997 (s 3) — requires users to consult another Act to determine key terms.","Multiple rate categories and exceptions in s 5 (tax‑free component; element taxed in the fund; element untaxed in the fund) including a special treatment for certain roll‑over amounts (s 5(2)).","Higher specified rates for amounts linked to working holiday maker contributions from 1 July 2017 (s 5(3)) — a time‑dependent rule.","Temporary budget repair levy mechanism in s 6 that can change rates during a 'temporary budget repair levy year', referencing the Income Tax (Transitional Provisions) Act 1997.","Interaction risk with other superannuation tax measures (note in s 5(2) references tax under the Superannuation (Excess Untaxed Roll‑over Amounts Tax) Act 2007) which requires coordination to avoid double taxation.","Administrative and compliance burden on trustees/withholders to identify component types, apply the correct percentage and withhold/remit tax under the Income Tax Assessment Act regime (s 4 imposes the tax)."],"plain_english_summary":"**What it does.** This Act imposes a tax on \"departing Australia superannuation payments\" (lump‑sum superannuation payments paid to people leaving Australia). It sets different tax rates depending on whether amounts are tax‑free, taxed in the fund, or untaxed in the fund, and includes special rules for certain roll‑over benefits and contributions made while a person was a working‑holiday maker. \n\n**Who it affects and why it matters.** Recipients of these payments (and the trustees/withholders who administer them) bear the tax; a temporary levy power can raise the rates in specified levy years, changing the net amount departing persons receive and affecting timing, reporting and fund classification incentives."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":true,"description":"The original Act (2007) established a straightforward tax regime for departing temporary residents with rates of 0%/35%/45%. However, section 5(3) — added later to target working holiday makers with a punitive 65% rate — significantly expanded the scope beyond the original purpose of ensuring departing temporary residents didn't access concessional superannuation tax rates. The 65% rate aligns with the controversial 'backpacker tax' on income and represents a shift from treating DASPs as a retirement savings matter to using them as a revenue-raising mechanism targeting specific visa subclasses. The temporary budget repair levy (section 6) also expanded scope temporarily, though this was time-limited by design."},"complexity_factors":["Only 6 sections total, with minimal conditional logic","7 defined terms, all imported by reference from other Acts (Income Tax Assessment Act 1997)","Simple rate structure with 3 main tiers (0%, 35%, 45%) plus one exception","Two modifying provisions: one for working holiday makers (section 5(3)) and one for the temporary budget repair levy (section 6)","No nested exceptions or complex cross-referencing beyond the imported definitions","Straightforward mathematical calculations (percentage applications)"],"plain_english_summary":"**What this law does:**\n\nThis Act sets up a special tax that applies when temporary workers leave Australia and take their superannuation (retirement savings) with them. These are called \"departing Australia superannuation payments\" (DASPs).\n\n**Who it affects:**\n\n- **Temporary residents** of Australia (such as backpackers, seasonal workers, and other visa holders) who leave the country permanently and claim their superannuation\n- **Superannuation funds** that process these payments\n\n**How the tax works:**\n\nThe tax rate depends on what type of superannuation money is being paid out:\n\n- **Tax-free component**: No tax (0%)\n- **Taxed element** (money that the super fund already paid tax on): **35%**\n- **Untaxed element** (money that hasn't been taxed yet, such as some government contributions): **45%**\n\n**Special rules:**\n\n- **Working holiday makers**: If you were on a working holiday visa (like a 417 or 462 visa) and made super contributions after 1 July 2017, you pay a flat **65%** tax rate on the taxable parts of your super. This is much higher than the standard rates.\n- **Unclaimed super**: If your super was transferred to the ATO as \"unclaimed money\" and you're claiming it through a special rollover process, there's a tweak to prevent double-taxing certain amounts.\n- **Budget repair levy**: Between 2014-15 and 2016-17, there was a temporary extra charge (2-3 percentage points higher) on these payments.\n\n**Why it matters:**\n\nThis law ensures temporary workers don't get the same tax concessions as permanent Australian residents when accessing super. Permanent residents typically pay much lower rates (or no tax) on super after age 60. The high rates for working holiday makers (65%) were introduced to match the higher tax rates they pay on their income while working in Australia."},"summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The original Act (2007) established a straightforward two-tier tax rate structure (35%/45%) for departing temporary residents. Scope expanded materially in 2017 when a significantly higher 65% rate was introduced specifically targeting working holiday makers, reflecting a policy shift to more aggressively tax this cohort. The Temporary Budget Repair Levy also temporarily expanded the effective tax rates beyond the original design, though this was time-limited."},"complexity_factors":["Multiple tax rate tiers depending on how contributions were treated inside the fund (taxed vs untaxed elements)","Special carve-out rate of 65% specifically for working holiday makers, requiring cross-referencing the Income Tax Rates Act 1986 to determine eligibility","Anti-double-taxation provision for 'excess untaxed roll-over amounts' requiring understanding of a separate Act (Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007)","Temporary Budget Repair Levy adds a time-limited overlay to the base rates, requiring cross-referencing the Income Tax (Transitional Provisions) Act 1997","Nearly all defined terms are imported wholesale from the Income Tax Assessment Act 1997, meaning the Act cannot be fully understood in isolation"],"plain_english_summary":"This Act taxes Departing Australia Superannuation Payments (DASPs) — lump sums paid to temporary visa holders when they permanently leave Australia. It affects temporary visa holders (including working holiday makers) and super funds that pay them. Rates depend on the fund treatment: tax‑free 0%, taxed element 35%, untaxed element 45%, with working holiday makers subject to a higher 65% rate (since 1 July 2017). This substantially reduces exit payouts."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-departing-australia-superannuation-payments-tax-act-2007","history":"/api/acts/superannuation-departing-australia-superannuation-payments-tax-act-2007/history","analysis":"/api/acts/superannuation-departing-australia-superannuation-payments-tax-act-2007/analysis","conflicts":"/api/acts/superannuation-departing-australia-superannuation-payments-tax-act-2007/conflicts","importantCases":"/api/acts/superannuation-departing-australia-superannuation-payments-tax-act-2007/important-cases","documents":"/api/acts/superannuation-departing-australia-superannuation-payments-tax-act-2007/documents"}}