Departing Australia Superannuation Payment (DASP)
Lost superannuation and unclaimed super are different things, though they can both end up with the same result. Some lost and unclaimed super can is required to be transferred to the ATO, earns only interest at the rate of CPI, and is unlikely to be returned to the owner.
Some lost superannuation can be required to be transferred from a super fund to the ATO. Lost superannuation is super which relates to ‘lost member’.The Superannuation (Unclaimed Money and Lost Members) Act 1999 points to the SIS regulations for the definition of a lost member, in particular regulation SISR 1.03A. This section says there are two kinds of lost members: uncontactable and inactive.
The Departing Australia Superannuation Payment, or DASP, allows temporary Australian residents to be paid any superannuation that has accumulated from their employment while in Australia when they leave.
Update: the Government intends to increase the tax on DASPs for backpackers to 95%.
Claiming a Departing Australia Superannuation Payment
There are several requirements for a Departing Australia Superannuation Payment:
- The member was on a temporary visa, excluding some visa-types, and
- The visa has ceased, and
- The member has left Australia
If you think you may be eligible for a Departing Australia Superannuation Payment you should confirm the process with the ATO, as it can change if the benefit is more or less than $5,000. The Departing Australia Superannuation Payment application can only be submitted after leaving Australia, but can be prepared beforehand. The application can be made online online or via a paper form, with the ATO.
The ATO says that, generally, a Departing Australia Superannuation Payment will be made within 28 days of the application for payment.
Announced in the 2014 federal budget, the Temporary Budget Repair Levy is an additional 2% tax on individual incomes over $180,000, however it also increases a number of other tax rates. The levy, as legislated, applies for the following financial years:
The following temporary budget repair levy bills relating to superannuation have now passed both houses of parliament:
- Income Tax Rates Amendment (Temporary Budget Repair Levy) Bill 2014
- Superannuation (Excess Non-concessional Contributions Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
- Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
- Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Bill 2014