When a temporary visa holder permanently leaves Australia, they are entitled to reclaim their accumulated superannuation through the Departing Australia Superannuation Payment (DASP). The ATO does not simply hand this money back tax-free. Instead, it applies a withholding tax directly to the payment before a single dollar reaches the claimant. The rate applied depends on the composition of the super balance, and for many claimants, the tax withheld is significantly higher than they expect. Understanding exactly how the ATO taxes a DASP before you submit a DASP online application is the difference between a pleasant surprise and a very costly one.
TL;DR
- DASP is available to temporary visa holders who have permanently left Australia; Australian citizens and permanent residents are generally not eligible [3].
- The ATO withholds tax from a DASP before payment, at rates that vary by the component of the super balance (taxed, untaxed, or tax-free) [2].
- Working Holiday Maker (WHM) visa holders face a higher DASP withholding rate on the taxed component than standard temporary residents [2].
- Australian citizens living overseas cannot access super early via DASP; they remain subject to standard superannuation rules [1].
- Submitting a DASP online application through the ATO’s portal is the primary lodgment method, but getting the pre-claim preparation right matters enormously.
What Exactly Is the Departing Australia Superannuation Payment?
The departing Australia superannuation payment is a mechanism that allows eligible temporary visa holders to claim their Australian superannuation after permanently departing Australia. It is not a universal entitlement: the Australian Taxation Office reserves DASP strictly for people who entered Australia on a temporary visa, have since left, and whose visa has expired or been cancelled [3].
Who is eligible and who is not matters enormously:
- Eligible: Temporary residents (student visas, working visas, skilled temporary visas) who have permanently departed Australia and whose temporary visa is no longer active [3].
- Not eligible: Australian citizens, Australian permanent residents, and New Zealand citizens on a Special Category Visa (subclass 444) – they cannot access super early through DASP [3].
- Not eligible: Temporary residents who are still in Australia, or whose visa remains active at the time of the claim.
This distinction trips up a significant number of people. Australian expats – citizens living abroad – frequently ask whether they can use DASP to access their super early. The short answer is no. Their superannuation remains preserved under Australian law regardless of where they live [1].
How Does the ATO Actually Tax a DASP?
Moving from eligibility to the financial reality, the most important thing to understand is that the ATO deducts withholding tax from the DASP before the lump sum is paid [2]. You do not receive the gross balance and pay tax later. The fund withholds on the ATO’s behalf, and you receive the net amount.
The tax rate applied depends on which component of the super balance is being paid out [2]:
| Super Component | Standard Temporary Resident Rate (2025-26) | Working Holiday Maker Rate (2025-26) |
|---|---|---|
| Taxed element (taxed super fund) | 35% | 65% |
| Untaxed element | 45% | 65% |
| Tax-free component | 0% | 0% |
The rates above are drawn from ATO published guidance [2]. Note that these apply for the 2025-26 financial year and are subject to legislative change. Always confirm current rates at the time you apply.
The Working Holiday Maker rate warrants particular attention. Backpackers and working holiday participants on subclass 417 or 462 visas face a withholding rate of 65% on both the taxed and untaxed elements of their DASP [2]. This is substantially higher than the rate for standard temporary residents and reflects specific legislative treatment of WHM earnings and super contributions. ODIN Tax regularly sees clients surprised by how much is withheld from what looked like a straightforward claim.
What Is the DASP Online Application Process?
With the tax treatment understood, the mechanics of claiming are the next practical concern. The primary lodgment channel is the ATO’s DASP online application portal. The process broadly follows these steps:
- Confirm eligibility: Verify your visa has expired or been cancelled and that you have permanently departed Australia.
- Gather your super fund details: Fund name, member number, and any relevant account information. If you have lost track of funds, the ATO’s SuperSeeker tool or myGov account can identify unclaimed or multiple accounts.
- Lodge the DASP online application: Submit through the ATO’s portal. The application asks for personal identification, visa details, and departure confirmation.
- Fund processing: Each super fund processes the claim separately. Timeframes vary by fund.
- Payment: The fund deducts the applicable withholding tax and pays the net balance to the nominated overseas bank account or to the ATO (for unclaimed super held by the ATO).
One practical note: if your super has already been transferred to the ATO as unclaimed super money, the claim goes directly to the ATO rather than the original fund. The process is similar, but the ATO portal routes the application differently.
Does Australian Tax Residency Status Affect a DASP Claim?
Stepping back from the mechanics, a separate concern is how a person’s Australian tax residency status interacts with a DASP claim. For temporary residents claiming DASP, residency status at the time of the claim is largely academic – they are, by definition, no longer in Australia and their temporary visa is no longer active.
However, for Australian citizens and permanent residents who are non-residents for tax purposes, the picture is entirely different. These individuals cannot access DASP [3]. Their superannuation remains subject to standard preservation rules and will ultimately be taxed under the normal superannuation withdrawal framework when they reach a condition of release (typically preservation age plus retirement).
Importantly, Australian expats who are non-residents for tax purposes remain subject to Australian tax on their superannuation contributions, fund earnings, and eventual withdrawals [1]. Living overseas does not quarantine super from Australian tax law.
Frequently Asked Questions
About ODIN Tax
ODIN Tax is Australia’s specialist tax agent practice built exclusively for Australian expats and non-residents. As a Registered Australian Tax Agent headquartered in Hong Kong, ODIN Tax has served more than 10,000 Australian expats across 40+ countries, earning a 4.9/5 Google rating from over 330 verified client reviews. Unlike generalist accounting firms that treat expat tax as a secondary service, ODIN Tax’s entire practice is built around non-resident scenarios: tax residency determinations, non-resident CGT, DASP processing, HECS debt for non-residents, and overdue lodgment resolution. As part of the ODIN Group alongside ODIN Mortgage, ODIN Tax coordinates tax strategy directly with mortgage structuring and property settlement, ensuring clients receive integrated advice aligned to their complete financial position.
Have a DASP question, or unsure how your super will be treated after leaving Australia?
Speak with the ODIN Tax team – Australia’s specialist expat tax agent.
Visit odintax.com to get started
Disclaimer: This article contains general information only and does not constitute personal tax advice. Tax rates and thresholds cited are applicable to the 2025-26 financial year and are subject to change. Individual circumstances vary significantly. Please consult a Registered Australian Tax Agent before making any decisions regarding your superannuation or tax obligations.
References
- Expat Superannuation Advice for Australians (titanwealthinternational.com)
- Pardon Our Interruption (www.unisuper.com.au)
- U.S. Taxes on Departing Australia Super Payment (DASP) (www.goldinglawyers.com)
