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The full tax picture
How Your Super Is Taxed
ALITAX · Bilal Jivraj — Registered Tax Agent 25287564. Original guidance from 10+ years of DASP and tax casework.
People are often surprised how much tax comes out of their super when they claim it early as a DASP. Here’s the full picture, in plain terms.
Super is taxed twice on the way out
Your super is generally taxed at two points:
- ~15% along the way — contributions and earnings inside super are generally taxed at around 15% while the money sits in the fund. This already happened before you claim.
- DASP tax when you withdraw — when you take it out as a DASP after leaving, a further 35% (standard) or 65% (working holiday maker) is applied to the taxed element.
So what’s the total?
For most visas, that’s roughly 15% + 35% ≈ around half your super gone in tax by the time you receive it. For working holiday makers it’s heavier — roughly 15% + 65%, so the great majority is taxed. It’s a lot — but it’s still your money, and leaving it behind means getting nothing.
Why DASP is taxed so much more than retirement
Here’s the key difference: if you reached retirement age in Australia, your super would generally be paid to you tax-free. Super gets its concessional treatment because it’s meant to fund retirement in Australia. A DASP is an early withdrawal by someone leaving the country, so it doesn’t get that retirement tax-free treatment — instead the DASP rates (35% or 65%) apply.
The takeaway
Don’t let the tax put you off claiming. After tax, a typical super balance still returns thousands of dollars to you — money that’s simply lost if you never claim it.