Superannuation When Leaving Australia: A Complete Guide for Canadians

If you worked in Australia on any visa, your employer was legally required to put 11.5% of your earnings into a superannuation fund on your behalf. That money is sitting there when you leave. Most Canadians either don't know it exists, don't know how to claim it, or get surprised by how much tax is taken off. This guide covers the whole process.

What is superannuation?

Superannuation (super) is Australia's compulsory retirement savings system. It works similarly to Canada's employer pension contributions, but it applies to almost every employed worker in Australia regardless of visa status. Your employer contributes 11.5% of your ordinary time earnings directly into a super fund in your name. You don't see this in your take-home pay - it goes separately into the fund.

For most Australians, this money is locked away until retirement. But for temporary visa holders - including Working Holiday Visa holders and people on skilled worker visas who don't become permanent residents - there is a way to get it back when you leave.

What is DASP?

DASP stands for Departing Australia Superannuation Payment. It is the formal mechanism by which temporary residents can reclaim their super when they permanently leave Australia. You apply after your visa has expired or been cancelled and after you have left the country.

Who can apply for DASP?

• You held a temporary visa (not a permanent visa) while working in Australia
• You have since left Australia
• Your visa has expired or been cancelled
• You are not an Australian or New Zealand citizen

The DASP tax rate - what you'll actually receive

This is where a lot of Canadians get an unpleasant surprise. DASP payments are taxed before they reach you, and the rate depends on what visa you held.

The 65% rate for Working Holiday Visa holders was introduced in 2017 to discourage people from using the WHV purely as a tax-advantaged savings vehicle. It is punishing, but it is the law. The money is still worth claiming - you just need to have realistic expectations about the payout.

How to find your super fund

Before you can claim DASP, you need to know which fund your super is in and how much is there. If you lost track of this during your time in Australia, there are two ways to find it.

Via myGov

If you set up a myGov account and linked it to the ATO while you were in Australia, you can log in and see all super accounts associated with your TFN. This is the fastest method. If you didn't set up myGov, do it now - you can set up the account from overseas using your Australian TFN.

Contact the ATO directly

Call the ATO on +61 2 6216 1111 from overseas or use their online enquiry form. They can tell you which funds hold super in your name using your TFN. Have your TFN, passport, and Australian address history ready.

How to apply for DASP - step by step

Where does the DASP payment go?

DASP can be paid into a foreign bank account. You will need to provide your Canadian bank account details including the SWIFT code and transit number. The payment is made in Australian dollars and converted by the receiving bank at the prevailing exchange rate.

For better exchange rates on the conversion from AUD to CAD, consider using an international money transfer service rather than your bank's default rate. The difference on a payout of several thousand dollars can be significant.

Canadian tax implications of DASP

Once the DASP payment lands in your Canadian account, you may have reporting obligations to the CRA depending on your tax residency status. If you re-established Canadian tax residency before receiving the payment, it may be treated as foreign income.

What if you plan to return to Australia?

If you plan to return to Australia on another visa in the future - particularly a second or third Working Holiday Visa - you may want to leave your super in the fund rather than claiming DASP immediately. It will continue earning investment returns while you are away, and you avoid the immediate 65% tax hit.

However, if your Australian working days are definitively behind you, claim it. Unclaimed super can eventually be transferred to the ATO as lost super, and while it can still be claimed, the process becomes more complicated.

The bottom line

Claiming your super is worth doing even with the DASP tax. Find all your funds via myGov before you leave, wait until your visa expires, then apply through the ATO's online portal. The process is straightforward once you have your fund details. Just go in with realistic expectations about the payout after tax.