Why is DASP taxed at 65% for working holiday makers?

The rate cannot be reduced, avoided, or refunded. It is applied at the point of withdrawal and the net amount is paid to the worker.

What does the 65% apply to?

The 65% applies to the taxable component of the super balance. Almost all super contributions for a working holiday maker fall into the taxable component, because they are:

• Employer contributions made under the Superannuation Guarantee (currently 12% of wages)
• Investment earnings on those contributions

A small portion of some accounts may be non-taxable (for example, personal after-tax contributions, which are rare for working holiday makers). The non-taxable component is not subject to the 65% rate.

Where did the 65% rate come from?

Before 2017, working holiday makers were taxed on DASP at the same rate as other temporary visa holders. The Working Holiday Maker Reform Package introduced in 2017 changed both the income tax rate (to 15% from the first dollar) and the DASP rate (to 65%). The reasoning given by the government was to balance the lower income tax rate against a higher tax on funds being taken out of the Australian super system.

The 65% rate applies regardless of how long the worker was in Australia, how much super was accumulated, or which fund the contributions went to.

How much super does a working holiday maker typically have?

The amount of super contributed depends on wages and time worked. As a rough guide, on the current 12% Superannuation Guarantee rate:

• $20,000 of wages generates approximately $2,400 of super contributions
• $40,000 of wages generates approximately $4,800 of super contributions
• $60,000 of wages generates approximately $7,200 of super contributions

After the 65% DASP tax, the net amount received is:

• $2,400 gross → approximately $840 net
• $4,800 gross → approximately $1,680 net
• $7,200 gross → approximately $2,520 net

The exact figures depend on fund fees and investment returns during the time the money was held.

Why claim DASP even at 65%?

Even at the 65% rate, claiming DASP is almost always worthwhile because the alternative is leaving the money behind. Super accounts that are never claimed are eventually transferred to the ATO as unclaimed monies. While the ATO holds these balances indefinitely, they do not grow with investment returns and are subject to the same DASP tax if claimed later. The 35% you receive now is better than nothing.

Working holiday makers who never claim their super are essentially making a gift to the Australian government. See our article on what happens to unclaimed super for what happens to balances that are never withdrawn.

Can you reduce the 65% in any way?

The 65% rate is set by federal law and cannot be reduced through deductions, offsets, or tax planning. The only way to receive a lower effective rate is if your account has a non-taxable component, which is unusual for working holiday makers. There is no legitimate strategy that reduces the rate.

Anyone claiming they can "get your super out at a lower tax rate" is either misunderstanding the law or running a scam. Be particularly careful with offers on social media or messaging apps to "handle your DASP at a discount". The same rules apply to whoever lodges the application: the 65% is withheld at the fund level before the payment is released. Sharing your super details with anyone who is not a registered tax agent puts you at serious risk of identity theft. See our article on protecting your TFN from fraud for the warning signs.

How does our service handle DASP?

When you lodge DASP through our service, our team:

• Identifies every super fund that received contributions
• Calculates the expected net payment after the 65% tax so you know what to expect
• Lodges each application directly with the fund through the official ATO DASP system
• Tracks payments and follows up where funds are slow to process
• Routes payment to your nominated overseas bank account

The 65% tax is unavoidable, but the rest of the process can be made fast and clean. Get in touch with our team to start your DASP application.