From 1 July 2017, departing superannuation payments made to working holiday makers (WHM) will be taxed at 65%. You are a working holiday maker if you have a visa subclass;
417 (Working Holiday)
462 (Work and Holiday).
These changes accompany the new income tax rate changes for Australian working holiday makers introduced by the Australian Government which was proposed in December 2016.
When you leave Australia, you will have your super paid to you as a Departing Australia Superannuation Payment (DASP).
DASP Tax Rate
DASP will be subjected to a 65% tax rate where the following will apply;
You hold or have held a 417 or 462 visa,
super is contributed to you working under 417 or 462 visa,
DASP is paid to you on or after 1 July 2017.
However, payments made before 1 July 2017 will be taxed at the current tax rate, which is set at 38%. It is best to check these changes as soon as possible.
For more information, please visit the ATO for up-to-date information on these changes.
Comments