Should you claim DASP or leave your superannuation in Australia?

This decision is one of the most consequential financial choices a working holiday maker makes, and the default for most workers should be to claim DASP rather than leave the money behind.

What is the basic comparison?

If you have $5,000 of super in an Australian fund when you leave Australia:

Option A: Claim DASP now

• 65% tax on the taxable component
• Net payment: approximately $1,750 (assuming the entire balance is taxable component, which is typical)
• Payment lands in your overseas bank account within 28 days of application

Option B: Leave the super in the fund

• Account continues to accrue investment returns (positive or negative)
• Account is charged ongoing fees (administration and insurance premiums)
• Money is inaccessible from overseas unless DASP is claimed later
• If unclaimed, the fund eventually transfers the balance to the ATO as unclaimed monies
• The 65% DASP tax rate still applies whenever the money is eventually withdrawn

The 65% tax rate follows you regardless of when you claim. Waiting does not reduce the tax. See our article on why DASP is taxed at 65% for the detail.

What happens to super left in the fund?

If you leave Australia without claiming DASP, your super does not disappear, but it does shrink. The forces working against the balance are:

• Administration fees: typically $50 to $130 per year regardless of balance
• Insurance premiums: deducted automatically unless you cancel cover (often $300 to $800 per year)
• Asset-based fees: 0.5% to 1.5% of the balance per year
• No new contributions: the balance does not grow from contributions while you are overseas

For a small balance (under $5,000), the combined fees can erode the balance to zero within a few years, particularly if insurance premiums are still being deducted.

The forces working in favour of the balance are:

• Investment returns: if the fund's investments perform well, the balance grows
• Long time horizon: over many years, investment compounding can outweigh fees on larger balances

For most working holiday maker balances (typically $2,000 to $10,000), the fee load tends to exceed the realistic investment return over the medium term.

The ATO unclaimed super pathway

If you leave the super in the fund without making contributions or contact for a defined period, the fund transfers the balance to the ATO as "unclaimed super monies". The ATO holds the balance indefinitely but with these features:

• No investment returns while held by the ATO
• No fees deducted (the balance simply sits)
• Interest paid at a rate roughly aligned with inflation (low single digits)
• Still subject to the 65% DASP tax when eventually claimed

Money held by the ATO is safer from fees than money held by the fund, but the lack of investment returns means the real (inflation-adjusted) value erodes over time.

See our article on what happens to unclaimed super for the detail.

When does leaving the super make sense?

The case for leaving the super is strongest when:

• You are likely to return to Australia within a few years on another visa
• The balance is large enough that the fees are a small percentage
• The fund has consistently good investment returns
• Insurance premiums have been cancelled (so the balance is not being eroded by unwanted cover)
• You expect the 65% DASP tax rate to remain unchanged (it is set by legislation and could change either way)

In practice, very few of these conditions apply to the typical working holiday maker.

When does claiming DASP make sense?

The case for claiming DASP is strongest when:

• You do not plan to return to Australia in the foreseeable future
• The balance is small (under $10,000), where fees would erode it
• You want certainty about the outcome (no risk of fee or rule changes)
• You can use the money productively now (debt repayment, savings, investment in your home country)
• You want to close out your Australian financial position cleanly

The 65% tax rate is high, but 35% of something is more than 100% of nothing. Working holiday makers who never claim their super end up making an unintended donation to the Australian government.

Can you reverse the decision later?

Once you claim DASP, the decision is final for that money. You cannot re-deposit the funds back into a super account if you later return to Australia. New super contributions on a second visa start a fresh account.

If you leave the super in the fund and later decide to claim, our team can lodge DASP from overseas at any point after your visa expires. The 65% tax rate applies whenever the claim is made.

What if you return to Australia on a new visa?

A working holiday maker who returns to Australia on a new visa (working holiday year 2, student visa, skilled visa, partner visa) can:

• Continue using the existing super account if it is still active
• Receive new employer contributions to that account
• Eventually claim DASP when they leave for the last time

Critically, the 65% WHM DASP rate follows the worker for any super accrued during a WHV period, even if subsequent contributions are under a different visa. This is one of the most misunderstood features of DASP and catches many returning travellers off guard.

What is the practical decision framework?

For most working holiday makers leaving Australia without plans to return:

1. Make sure all super contributions from all employers are in identifiable funds (see our article on super in multiple funds)
2. Cancel any unnecessary insurance policies on the accounts to stop fee erosion
3. Claim DASP within 12 months of departure, while bank details and contact details are still current
4. Receive the net payment to your overseas bank account

For working holiday makers planning to return within 2 to 3 years:

1. Consolidate super into a single fund with low fees
2. Cancel unnecessary insurance
3. Keep contact details and bank details up to date
4. Reassess at the time of the next departure

How does our service handle the DASP decision?

When you engage our team for DASP, we:

• Identify every super fund holding your contributions
• Calculate the gross balance and the expected net payment after 65% tax
• Review the fee structure of each fund and the impact on retained balances
• Cancel unnecessary insurance to stop fee erosion if you choose to wait
• Lodge the DASP claim through the official ATO system when you decide to proceed
• Track the payment to your overseas bank account

The decision to claim DASP or wait is yours, but the financial picture should be clear before you make it. Get in touch with our team to understand exactly what your super position is and what each option would deliver.