Australian superannuation for NRIs returning to India: DASP, DTAA and India tax
Indian nationals on temporary Australian visas (not Australian PR or citizens) can access their superannuation via the Departing Australia Superannuation Payment (DASP) after leaving Australia permanently. DASP is taxed by ATO at 65% on taxable component (Working Holiday Maker rate) or 35% for other temporary residents. The Australia-India DTAA Article 18 does not clearly exempt DASP from India tax — DASP is not a pension but a lump-sum payment, so India may tax it depending on your residency status at receipt.
DASP is taxed by ATO at 35% (temporary residents) — apply within 6 months of leaving Australia
If you worked in Australia on a temporary visa (student, 457, TSS) and are not an Australian citizen or permanent resident, you can claim DASP — a lump-sum payment of your superannuation — after leaving Australia permanently. ATO deducts 35% tax on the taxable component (65% for Working Holiday Maker visa holders). DASP is not a pension under the DTAA — India may tax DASP received by an Indian resident during the non-RNOR period. During RNOR, DASP from Australia is exempt from India tax as foreign income.
Key points
- DASP: 35% ATO tax on taxable component for temp residents — Non-WHM temporary visa holders pay 35% ATO tax on DASP taxable component. WHM (Subclass 417/462) pay 65%.
- RNOR window: India foreign income exempt — delay DASP to RNOR — Receiving DASP during your RNOR period in India means India does not levy additional tax on the DASP receipt (foreign income exemption for RNOR).
- Alternative: stay until preservation age (60) for 0% super — If you become an Australian permanent resident or citizen and stay until age 60, super withdrawals from a taxed fund are 0% ATO tax — but requires long-term commitment to Australia.
DASP: how to claim your super after leaving Australia
Eligibility: You held a temporary visa (not citizen or PR), your visa has expired or been cancelled, and you have left Australia permanently.
Application: Apply via myGov linked to ATO, or paper form. Applications can be submitted online after departure.
Timeline: Apply within 6 months of leaving Australia (some funds may require earlier application).
ATO tax deducted: 35% on the taxable component (the employer contributions and investment earnings), which is typically 80–90% of the balance for standard temporary residents.
After-tax DASP: the net amount is remitted to your nominated bank account — a foreign account or Australian account. Then remit to India via your NRE account.
India tax on DASP
During RNOR (first 2–3 years after returning to India): DASP is foreign income — exempt from India tax under the RNOR provision. No India tax on DASP if received during RNOR.
After RNOR (full Indian resident): DASP is a foreign lump-sum receipt. India may treat it as income from an overseas source — taxable at applicable slab rates. Australia-India DTAA Article 18 covers pensions; DASP is arguably a lump-sum super payment, not a periodic pension — India may not grant DTAA exemption. Consult a tax advisor.
Strategy: if you have DASP to claim and are returning to India, time the claim to fall within your RNOR period. Claim DASP in the first year of return to India (while RNOR).
Frequently asked questions
What is the preservation age for Australia super?
The preservation age is 60 for those born after June 30, 1964. You can access super tax-free from a taxed fund at age 60+ if you have retired. For temporary visa holders who do not plan to retire in Australia, DASP is the relevant exit path.
Can I transfer Australia super to an Indian pension fund?
No. Australian super cannot be transferred directly to an overseas pension fund (unlike UK pension transfers). The only options are DASP (for temp residents) or preservation until preservation age (for PR/citizens).
If I become an Australian citizen, can I still return to India and access super?
Australian citizens and PR holders must wait until preservation age (60+) and meet a 'condition of release' to access super. There is no DASP for citizens/PRs — emigration from Australia does not trigger access. You can only access super at retirement age.