• New tax rates for DASP including working holiday makers

    New tax rate for working holiday makers

    As part of the Working Holiday Maker Reform Package, the government passed legislation to increase the tax rate applied to the departing Australia superannuation payment (DASP) for working holiday makers.

    From 1 July 2017 a new tax rate of 65 per cent applies to superannuation contributions made while a person is a working holiday maker on visa subclasses 417 (Working Holiday) and 462 (Work and Holiday).

    To prevent members from unnecessarily paying the higher tax rate applicable from 1 July 2017, super funds should download DASP forms and process them as soon as possible.

    DASP tax rate changes

    The removal of the Temporary Budget Repair Levy from 1 July 2017 means the tax rates for DASP will change.

    DASP tax rates are currently:

    • 0% for the tax-free component
    • 38% for a taxed element of a taxable component
    • 47% for an untaxed element of a taxable component

    The tax rates that will apply to DASP from 1 July are:

    • 0% for the tax-free component
    • 35% for a taxed element of a taxable component
    • 45% for an untaxed element of a taxable component
    • 65% for a Working Holiday Maker applied to both the taxed and untaxed element of the taxable component.

    See also:

      Last modified: 10 Mar 2017QC 51464