Can I Withdraw My Super If I Leave Australia Permanently?

Australian superannuation, often referred to as super, represents retirement savings accumulated through employer contributions during employment in Australia. This system is designed to provide financial support in retirement for those who reside permanently in the country. For individuals who have worked in Australia on temporary visas and subsequently leave the country for good, specific provisions allow them to access these accumulated funds. This article explains how individuals who have permanently departed Australia can claim their super.

Eligibility for Departing Australia Superannuation Payment (DASP)

The Departing Australia Superannuation Payment (DASP) enables eligible temporary residents to withdraw their superannuation savings after leaving Australia permanently. To qualify for a DASP, an individual must have accumulated superannuation while working in Australia on a temporary resident visa. Their temporary visa must have ceased to be in effect, meaning it has expired or been cancelled, and they must have permanently left Australia without holding any other active Australian visa.

Australian citizens, New Zealand citizens, and Australian permanent residents are not eligible to claim a DASP, as their superannuation is intended for their retirement within Australia. For New Zealand citizens, specific government agreements may allow for the transfer of their Australian superannuation to a New Zealand KiwiSaver scheme if they meet the criteria. This portability arrangement offers an alternative to DASP for eligible New Zealanders.

Demonstrating permanent departure and visa cessation is a requirement for DASP eligibility. The DASP online application system can verify an applicant’s immigration status directly with the Department of Home Affairs. However, a super fund might request further evidence, such as a certified copy of the visa or a Certificate of Immigration Status from the Department of Home Affairs.

If superannuation remains unclaimed six months or more after an individual has left Australia and their visa has ceased, the funds may be transferred to the Australian Taxation Office (ATO) as unclaimed super money.

Applying for Your DASP

The application for a DASP can only be submitted after an individual has permanently left Australia and their temporary visa has ceased to be in effect. While the application cannot be submitted prior to departure, it is advisable to gather all necessary information and prepare documents while still in Australia. This proactive approach helps streamline the process and prevent difficulties once residing overseas.

The primary method for applying is through the DASP online application system, available on the ATO website, which handles claims for both super held by super funds and super held by the ATO. Alternatively, paper forms are available for specific situations.

To complete the application, individuals need personal details such as their name, date of birth, and email address, along with their passport country and number. Information about the superannuation fund, including its Australian Business Number (ABN), and bank account details for payment are also necessary. Providing an Australian Tax File Number (TFN) is optional but can assist in locating all super accounts and facilitate quicker processing.

For certain applications, certified copies of identity documents like a passport may be required. Obtaining these certified copies is often easier to arrange while physically in Australia, as specific rules govern who can certify documents.

Once a complete application is submitted, the DASP is processed within 28 days. Delays can occur if the application is incomplete or if additional supporting documents are requested. Payments can be made via electronic funds transfer (EFT) to an Australian bank account, by Australian dollar cheque, or by international money transfer (IMT) for fund applications.

Taxation of DASP

A Departing Australia Superannuation Payment (DASP) is subject to Australian tax, which is withheld before the payment is issued. This tax is considered a final tax, meaning the DASP payment is not included in an individual’s assessable income for Australian tax purposes, and therefore does not need to be declared in an Australian tax return.

The DASP payment consists of two components: a tax-free component and a taxable component. The tax-free component is not subject to DASP withholding tax. The taxable component, however, is taxed, and its rate depends on the type of visa the individual held.

For individuals who did not hold a Working Holiday Maker (WHM) visa, the taxable component’s taxed element is subject to a 35% withholding tax, while the untaxed element incurs a 45% withholding tax.

Different tax rates apply to those who held a Working Holiday (subclass 417) or Work and Holiday (subclass 462) visa. If any part of the superannuation was accrued while holding a WHM visa, the entire taxable component of the DASP is subject to a 65% withholding tax.

The super fund or the ATO, depending on who holds the super, is responsible for withholding the correct amount of tax before the DASP is paid out.