Super for working holiday makers¶

A working holiday maker is a person visiting Australia on a subclass 417 or subclass 462 visa. These are often called backpacker visas. While they work here, they are treated the same as other eligible employees for super. You pay their super in the normal way.

The difference comes when they leave the country. Because they are temporary residents, they can claim their super back once they have gone, as a special payment from their fund.

In one line

Pay a working holiday maker's super the same as any other eligible employee — when they leave Australia they can claim it as a departing Australia superannuation payment.

Why this matters¶

It is easy to assume a short-stay worker on a backpacker visa does not get super. That is wrong. If they meet the normal super rules, you must pay their super just like any other worker. Getting this wrong can leave you owing super you did not pay.

What you will learn¶

That working holiday makers are entitled to super like other eligible employees
What your duty as an employer is
How the worker claims their super after leaving Australia

Understanding the concept¶

A working holiday maker is still an eligible employee. The ATO says that if a temporary resident is working in Australia and is eligible for super, their employer has to make super guarantee contributions for them. The visa type does not change this.

So your job is simple. Pay their super at the normal rate, into a valid fund, by the normal due dates. You work it out the same way you would for anyone else.

When the worker leaves Australia and their visa has ended, they can claim their super as a departing Australia superannuation payment, or DASP. The ATO explains that a temporary resident who has left the country can have their super paid to them, less tax, as a DASP. The worker claims this themselves — it is not something the employer does.

The ATO notes that a higher DASP tax rate applies to working holiday makers who have held a 417 or 462 visa. This is why their DASP is treated a little differently from other temporary residents. We do not state the exact rate here, as rates can change — check the ATO for the current figure.

For accountants & bookkeepers

The DASP is claimed by the individual after their visa ceases and they have left Australia, through the ATO's free DASP online application system. The system confirms immigration status with the Department of Home Affairs. Where a DASP includes amounts from super contributed while the person held a 417 or 462 visa, the ATO applies the working holiday maker DASP tax rate to the whole payment. The employer's role ends at paying the super correctly during employment.

Example¶

Emma is a backpacker on a subclass 417 visa. She works casual shifts at a cafe for four months. She is an eligible employee, so the cafe pays her super at the normal rate into her fund, by the normal due dates — exactly as it would for a local casual worker.

When Emma's visa ends and she flies home, she applies to the ATO to claim her super as a DASP. Her fund pays out her super, less the tax that applies. Because Emma held a 417 visa, the ATO applies the working holiday maker DASP tax rate. The cafe did nothing extra — it simply paid Emma's super correctly while she worked there.

Common mistakes¶

Assuming a backpacker on a 417 or 462 visa is not entitled to super — they are, if they meet the normal rules.
Skipping super because the worker is only here a short time — length of stay does not remove the obligation.
Thinking the employer claims or refunds the DASP — the worker claims it from the ATO after leaving Australia.

How this works in myaccountant¶

In the app — when a working holiday maker is an eligible employee, myaccountant works out and pays their super the same as any other eligible worker, and holds their fund details. The departing Australia superannuation payment is claimed by the worker directly with the ATO and their fund after they leave — it is not done through myaccountant.

Key points¶

Working holiday makers on 417 or 462 visas get super like other eligible employees.
The employer pays their super in the normal way, at the normal rate and due dates.
The visa type and short stay do not remove the super obligation.
On leaving Australia, the worker can claim their super as a DASP.
The worker claims the DASP from the ATO — the employer does not.
A higher DASP tax rate applies to working holiday makers; check the ATO for the rate.

Learn next¶

General information only — not tax, super or financial advice.

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