If you are working in Australia on a Working Holiday visa (subclass 417 or 462), your employer must pay super on your behalf under the Super Guarantee. However, when you leave Australia, a 65% withholding tax applies to your DASP — one of the highest effective tax rates in the super system.
Do Working Holiday Makers Earn Super?
Yes. Working holiday makers are entitled to SG contributions like any other employee, provided they:
- Are 18 or over (or earn more than $450/month if under 18 — though the $450 threshold was removed in July 2022 so now all employees over 18 are eligible regardless of earnings)
- Are employed under an employment relationship (not sham contracting)
Employer SG rate FY2024–25: 11.5% of ordinary time earnings. This applies to wages earned in seasonal, hospitality, retail, agriculture, tourism, and all other industries WHMs commonly work in.
Providing Your TFN
Apply for a Tax File Number as soon as possible. Without a TFN on file with your super fund:
- Employer contributions are taxed at 47% (the “no TFN” rate)
- You cannot recover this overpaid tax even on DASP
TFN applications can be made through the ATO online or at Australia Post.
The DASP Tax Problem for WHMs
From 1 July 2017, the DASP withholding tax rate for working holiday makers increased significantly:
| Visa type | DASP tax rate |
|---|---|
| Working Holiday Maker (417/462) | 65% |
| Other temporary visa holders | 35% |
Example:
- WHM earns $50,000 gross during a 12-month stay
- SG paid: $5,750 (11.5%)
- DASP after leaving: $5,750 × (1 − 0.65) = $2,012
The 65% rate applies to all components of the WHM’s super — including the normally tax-free non-concessional component.
Why the 65% Rate?
The Government introduced the 65% WHM rate in 2017, arguing that employers were structuring arrangements to use the DASP refund as part of employee remuneration packages. The rate was increased to neutralise this practice.
Many WHMs — particularly from the UK, Ireland, and Europe — received substantially less than expected on claiming their super and the change attracted criticism.
How to Claim Your Super (DASP)
- Leave Australia permanently (or intend to permanently)
- Have your visa cancelled or let it expire
- Apply through the ATO DASP online application at ato.gov.au
- Provide your TFN, passport, visa details, fund details, and bank account
- The fund releases the benefit (minus 65% withholding tax)
See DASP — How to Claim for the full step-by-step process.
Strategies for WHMs
Given the 65% tax, the return from super is small. Key strategies:
- Provide your TFN: Avoid compounding the loss with the no-TFN 47% rate on contributions on top of 65% DASP tax
- Choose a low-fee fund: Fees reduce the balance before DASP — keep them minimal
- Opt out of default insurance: If you are young and healthy and will only stay 12–24 months, insurance premiums reduce your balance
- Keep contributions short: The 11.5% SG is earned regardless — focus on maximising wages rather than super strategies
For more: DASP Tax Rates, DASP — How to Claim, Super for Temporary Residents. For advice on your situation, speak with a licensed financial adviser via MoneySmart.