Australia Financial Glossary
Learn the definitions of key financial terms, tax acronyms, and mortgage jargon commonly used in Australia. Updated for 2026.
D
Division 293 Tax
TaxAn additional 15% tax on concessional super contributions for individuals with combined income and super exceeding $250,000, doubling the effective super contributions tax to 30%.
View full definition →DASP
RetirementDeparting Australia Superannuation Payment. The process of withdrawing accumulated super when permanently leaving Australia, subject to 65% withholding tax for WHMs.
View full definition →N
New Home GST Rebate
TaxAn Australian GST rebate for new residential construction, separate from the Canadian Bill C-4 rebate, applicable to owner-builder and developer projects.
View full definition →Novated Lease
TaxA salary packaging arrangement unique to Australia where an employee leases a vehicle through their employer, with pre-tax salary paying lease costs and reducing taxable income.
View full definition →W
Australian financial terms for the payday super and working holiday era
From July 2026, Australia's superannuation system includes payday frequency contributions, a new 15% tax bracket under Stage 3 reforms, and specific tax schedules for working holiday makers. Division 293 continues to apply an extra 15% on high-income super contributions above $250,000. These terms cover the 2026-27 rules that affect your super, tax, and salary packaging.
Division 293 and the concessional contributions cap
The concessional super cap rises to $32,500 from July 2026. Contributions are taxed at 15% inside the fund, but if your combined income and super exceeds $250,000, Division 293 adds another 15% (totaling 30%). Even at 30%, this remains lower than the top marginal rate of 47%, so high earners still benefit from contributing to super.
Working holiday maker tax rates and DASP
Subclass 417 and 462 visa holders pay a flat 15% on the first $45,000 in earnings (no tax-free threshold). Employers must be ATO-registered as WHM employers to apply this rate. When leaving Australia permanently, working holiday makers can claim their super through DASP, but face a 65% withholding tax on the taxable component.
Novated leasing and salary packaging
A novated lease pays for a car from pre-tax salary, saving your marginal tax rate on every dollar spent. Electric vehicles below $91,387 (2026-27 luxury threshold) are FBT-exempt under novation: making EVs effectively 30-40% cheaper through salary packaging than buying outright.