Superannuation for International Students: When It Builds Up and How to Get It Back When You Leave
Employer super starts at 12% of qualifying earnings. Tax residency decides your DASP rate, and you can only apply after you leave with no active visa.
If you have not sorted this out yet, our guide to how to plan your money for the first semester is the place to start; the admin jobs worth doing in your first week covers the related groundwork.
When superannuation starts and who pays it
Employers must pay superannuation contributions under the super guarantee when an employee has qualifying earnings. The standard contribution is 12% of those earnings. The employer sends the contribution to your chosen superannuation fund. The fund must receive it within 7 business days from payday. Certain circumstances, including a new employee’s first contribution, extend this to 20 business days.
How much builds up and where it is held
Your balance depends on the contributions paid into your fund, which are based on your qualifying earnings. There is no standard balance for an international student; it reflects the work you actually do and what you were paid. Superannuation accumulated under the Migration Act is held by your superannuation fund. A Departing Australia Superannuation Payment, or DASP, can cover money held by a super fund or money held by the Australian Taxation Office.
Tax residency and departure tax
A visa does not determine tax residency. You can hold a visa without being an Australian resident for tax purposes. The primary test is the resides test. If it does not apply, 3 statutory tests may apply, including the 183-day test. If your status changes from resident to foreign resident during the income year, answer “yes” to the Australian resident question.
For a non-working holiday maker, the DASP ordinary rates are Nil for the tax-free component, 35% for the taxed element and 45% for the untaxed element. For a working holiday maker, the respective rates are Nil, 65% and 65%.
If you do not claim it
You cannot submit a DASP application until you have left Australia and no longer hold an active visa. You may save the application before departure. If you do not apply, your super fund transfers the money to the Australian Taxation Office as unclaimed super money when both conditions are met: 6 months or more have passed since leaving Australia, and your visa has ceased to be in effect. You must lodge a tax return before accessing super if you have income from other sources or tax withheld shown on your PAYG payment summary.
FAQ
Can I apply for DASP before leaving Australia?
You can start and save the online application while still in Australia. Submission is allowed only after you leave and no longer hold an active visa.
When is DASP usually paid?
The payment will generally be made within 28 days after the Australian Taxation Office receives your completed application.
How can DASP be paid?
There are 3 payment options: electronic funds transfer to an Australian bank account, an Australian dollar cheque or international money transfer. International money transfer applies only to applications to super funds.
Will I receive a payment summary?
The payer must issue a DASP payment summary within 14 days of making the payment.
Does leaving Australia mean superannuation is paid automatically?
No. You need to apply for DASP. Without an application, transfer to the Australian Taxation Office requires 6 months or more since departure and a visa no longer in effect.