DASP for working holiday makers
In December 2016, the Australian Government introduced a new DASP tax rate for working holiday makers (WHMs). This change is related to the new income tax rate for working holiday makers.
You are a WHM if you hold one of the following visas:
- a 417 (Working Holiday) visa
- a 462 (Work and Holiday) visa
- an associated bridging visa.
From 1 July 2017, the new DASP WHM tax rate of 65% applies to DASPs made to WHMs where it includes amounts attributable to superannuation contributions made under a WHM visa.
It doesn't matter when you held a WHM visa. The DASP WHM tax rate will apply if you have ever held a 417 or 462 and associated bridging visas and the DASP includes amounts attributable to super contributions made while you held the relevant visa.
The DASP WHM tax rate applies to the entire payment, including any super you may have earned while working under a different visa.
Visa information for WHMs
The introduction of the DASP WHM tax rate means super funds will need your visa information to determine the appropriate tax rate to withhold.
The DASP online application system will obtain visa information from Home Affairs where you have held a WHM visa. This enables super funds and the ATO to determine the appropriate DASP tax rate.
You will need to provide your visa information on the paper application form if you have held a WHM visa. The visa information you provide may be checked with Home Affairs. Your application may take longer to process if your information does not match.
Your bridging visas may be considered a WHM visa where it is associated to the 417 or 462 visas. Bridging visas that are considered WHM are:
- a bridging visa issued immediately after a 417 or 462 visa and immediately before a second 417 or 462 visas
- a bridging visa issued immediately after a 417 or 462 visa and no other visa issued after this bridging visa.
DASP tax for WHMs
The DASP tax rate will be determined by each super fund individually, as each fund is making a separate payment.
Each super fund will assess your application and determine the tax rate to apply based on the information it holds in relation to your contributions. If you have held a WHM visa, your super fund will check whether the DASP includes amounts attributable to super contributions made while you held a WHM visa. If it does, the fund will apply the DASP WHM tax rate. If it doesn’t, the fund will apply the DASP ordinary tax rates.
The different DASP tax rates that may apply are summarised below:
- If you have never held a WHM visa – the DASP ordinary tax rates apply.
- If you have only ever held a WHM visa and associated bridging visas – the DASP WHM tax rate applies.
- If you held a WHM visa and another type of visa – the tax rate that applies will depend on whether the DASP includes amounts attributable to super contributions made while you held a WHM visa. If it does, the DASP WHM tax rate will apply to the entire amount. If it does not, the DASP ordinary tax rates will apply.