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jack2000

457 super taxed at 65% upon leaving if EVER held a 417

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So today I discovered that the ATO is now taxing the entirety of a temporary resident's super payment at 65% upon leaving Aus, if they have EVER held a 417 or other working holiday visa.

As someone who came here on a 417 but has been on a 457 for several years, this is pretty frustrating and seems highly unfair. I'm intending to leave in around 9 months, with a super fund of about $30k.

Any opinions about my best options? I understand that if I don't claim the money, it will just sit in a ATO fund without earning any interest. It's a new rule and pretty obviously unfair, so I suppose that at some point in the coming years someone might care enough to change it (wishful thinking...)

https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-paying-tax/Super-information-for-temporary-residents-departing-Australia/?page=5#DASP_for_working_holiday_makers

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On ‎16‎/‎04‎/‎2018 at 16:05, jack2000 said:

So today I discovered that the ATO is now taxing the entirety of a temporary resident's super payment at 65% upon leaving Aus, if they have EVER held a 417 or other working holiday visa.

As someone who came here on a 417 but has been on a 457 for several years, this is pretty frustrating and seems highly unfair. I'm intending to leave in around 9 months, with a super fund of about $30k.

Any opinions about my best options? I understand that if I don't claim the money, it will just sit in a ATO fund without earning any interest. It's a new rule and pretty obviously unfair, so I suppose that at some point in the coming years someone might care enough to change it (wishful thinking...)

https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-paying-tax/Super-information-for-temporary-residents-departing-Australia/?page=5#DASP_for_working_holiday_makers

Looks like the only thing you can do if the Super fund you are paying into now is the same one you had and paid into while you had your WHV is to open a new Super fund now and pay into that one for the next 9 months. That means you'll only pay the ordinary rate on the new Super fund but it's too late to do anything about the old one. Not a good piece of legislation.


Chartered Accountant (England & Wales); Registered Tax Agent & Fellow of The Tax Institute (Australia)

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