You worked in Australia, and your employer paid an extra 11.5–12% of every paycheck into a superannuation fund with your name on it. Then you leave — and the government keeps 65 cents of every dollar. This isn’t your fund skimming you, and it isn’t a mistake. Here’s exactly why the superannuation 65% tax hits Working Holiday Makers, who it applies to, and how to claim what’s left.
What Is the DASP and Who Does It Hit
When a temporary resident leaves Australia for good, they can claim their super back through the Departing Australia Superannuation Payment (DASP). It’s your money — but the government taxes it on the way out.
The catch is the rate depends on your visa history, not your current situation. If you ever held your super under a Working Holiday Maker (WHM) visa — subclass 417 or 462 — the payment is taxed at 65%.
That’s brutal, and it’s specific. A different temporary resident — say someone on a 482 skilled visa who never worked on a working-holiday visa — pays 35–45% on the same payment. Same fund, same country, wildly different tax. The 65% rate exists only for the working-holiday crowd.
Why the Rate Is 65% (The Policy Reason)
Most people assume the fund is taking a cut. It isn’t. The 65% is a deliberate government revenue measure introduced on 1 July 2017 as part of the so-called “backpacker tax” package.
The logic from Canberra was blunt: working-holiday earnings are taxed at a low starting rate while you’re in the country, so the government claws revenue back at the exit. Super was folded into that same package. You can read the official rules straight from the Australian Taxation Office DASP page.
⚠️ It’s worth knowing this is politically contested. Critics — including unions and migration advocates — argue it’s an effective 65% tax on wages already earned and set aside. If it feels unfair, you’re not imagining it. But until the law changes, the rate stands.
DASP Tax Rates Compared
Your rate is set by the visa your super was held under — here’s how the three main situations compare:
The takeaway: an ordinary temporary resident keeps roughly 65 cents on the dollar, while a working-holiday worker keeps only 35 cents. Nearly half again, gone — purely because of visa class.
The Visa-Tainting Trap — and How to Avoid It
Here’s the mistake that costs people thousands. Many backpackers think, “I’ll switch to a skilled visa before I leave, so I’ll pay the lower rate.”
It doesn’t work that way. If any of your super was contributed under a WHM visa — even one paycheck — the whole payment gets the 65% rate.
The ATO applies the 65% rate if any of the super in your account was contributed while you held a WHM visa. Switching to a 482 or 500 visa later does not wash out the earlier “tainting.” The whole payment gets the 65% rate.
There is no clean legal trick to reset this. The only thing that changes your outcome is becoming a permanent resident or citizen, in which case you can no longer claim DASP at all — your super simply stays invested in Australia until you reach preservation age.
If your plan is to stay in Australia long-term, that’s fine — leave the super where it is. If you’re leaving for good, accept the 65% and claim promptly rather than losing track of the account entirely.
How to Claim Your Super When You Leave Australia
You can claim DASP yourself, online, for free — no tax agent is required. Here’s the process:
Step 1 · Leave Australia and let your visa expire or be cancelled. You cannot receive a DASP while you’re still in the country on an active visa. Timing matters — don’t lodge before you’ve genuinely departed permanently.
Step 2 · Gather your details: passport number, visa details, tax file number (TFN), and your super fund’s name and member number.
Step 3 · Use the free ATO DASP online application system. It searches for all your super across funds using your TFN and passport.
Step 4 · Confirm each fund. If you had multiple jobs, you likely have multiple funds — the system should surface them, but check each one is listed.
Step 5 · Submit and wait. Funds generally must pay within 28 days of receiving a complete request. The tax is withheld automatically; you receive the net amount.
🔎 Lost your TFN? You can still apply — the ATO’s system can match you on passport and visa details, or you can recover your TFN through your myGov account or by phoning the ATO before you leave.
⏳ Never claimed and it’s been years? If you leave and don’t lodge a DASP, your fund transfers the balance to the ATO as unclaimed super after six months. It doesn’t disappear — you can still claim it from the ATO later — but it stops earning investment returns once it’s handed over, so claiming sooner keeps more of your money working.
For complex cases — multiple funds, mixed visa history, or a large balance — a registered expat tax service can handle the paperwork, though it won’t reduce the 65% rate itself.
FAQ
Can I avoid the 65% tax?
Not if your super was ever held under a 417 or 462 visa. There’s no legal workaround short of becoming a permanent resident (in which case you can’t claim DASP at all).
What if I have super in multiple funds?
The ATO’s online system searches across all funds using your TFN and passport. Claim from each one — check the list carefully so nothing is missed.
Can I claim before my visa expires?
No. You must have left Australia and your visa must be expired or cancelled. Lodging while still onshore on an active visa won’t work.
Will the 65% rate change?
It’s politically contested and has been challenged, but as of now it remains law. Don’t count on a change — plan around the current rate.
Does a tax agent get me more back?
No. The 65% is a fixed withholding rate; an agent can’t reduce it. They only help with paperwork and complex multi-fund cases.
The 65% rate is fixed, but the money is still yours to claim — just claim it correctly and promptly after you leave. Start your free application through the ATO below.