Superannuation (Departing Australia Superannuation Payments Tax) Act 2007

Superannuation (Departing Australia Superannuation Payments Tax) Act 2007

What does this law do?

This Act imposes a tax on superannuation (retirement savings) that is paid out to temporary visa holders who are leaving Australia permanently — a payment known as a "Departing Australia Superannuation Payment" (DASP).

If you worked in Australia on a temporary visa (like a working holiday or student visa), your employer was required to contribute to an Australian super fund on your behalf. When you leave Australia for good, you can claim that money back — but the government takes a cut first. This Act sets out exactly how much.

Who does this affect?

• Temporary visa holders (e.g., backpackers, international students, temporary workers) who worked in Australia and had superannuation contributions made for them
• Superannuation funds that hold and pay out these amounts
• Working holiday makers (e.g., people on a 417 or 462 visa) are treated even more harshly

How much tax is taken?

The tax rate depends on how the money was treated inside the super fund:

| Type of money | Standard tax rate | |---|---| | Tax-free component | 0% (no tax) | | Already-taxed contributions ("element taxed in the fund") | 35% | | Not-yet-taxed contributions ("element untaxed in the fund") | 45% |

Working holiday makers face a higher rate of 65% on both taxed and untaxed elements (for contributions made while on a working holiday visa). This higher rate has applied since 1 July 2017.