The so called “backpacker tax” is scraped
So what is all this about?
There have been more changes to the Australian Backpacker Tax so read my updates article for backpacker tax in Australia here.
So maybe you have followed in the news or in forums and blogs about the so called “Backpacker Tax” that Australia has looked to introduce for those on a Working Holiday Visas.
It was introduced that from July 2016 Travellers to Australia that are travelling on the Working Holiday Visa would have the $18,000 tax-free income concession removed and would have to pay a massive 32.5% for every dollar that they made.
This has caused a massive uproar from travellers, tourism officials and employers of the travellers, especially the fruit and vegetable farms who rely on travellers to do the dirty farm work.
I must say I don’t have that much sympathy for a number of farms in Australia that are well known for treating travellers in a terrible manner but that is another story all together. Point is; a lot of people including myself thought this backpacker tax was a completely silly idea!
The Good News
The federal government has finally listened. Today cabinet met and announced that the tax rate that would be enforced was a much
more reasonable rate of 19% for every dollar earned from January 1st 2017 READ THE UPDATED ARTICLE ABOUT BACKPACKER TAX IN AUSTRALIA HERE– Travellers win!
Treasurer Scott Morrison gave us all the good news from Parliament House in Canberra today.
He dropped some more good news that the tourism sector will get $10 million to market jobs to backpackers. Sure why not.
Opposition Leader Bill Shorten was grumpy about any tax what so ever. Get in there Shorten!
“It’s been a mess from day one,” Shorten said.
Australian tourism leaders believe this tax has caused for a drop in backpacker numbers with evidence of a seven per cent fall in the time backpackers spent in OZ.
Totally different to other overseas visitors who increased more than 10 per cent in the year to June 30, and racked up 5 per cent more nights in Australia.
But how are they getting the money they want?
The bad news is; and this isn’t just for backpackers is that from July 1 Australia’s Passenger Movement Charge — which is built-in to all airline tickets — would be raised from $55 to $60.
This has caused more uproar as it is already one of the most expensive in the world. But, hey; for me I would prefer to see this than less backpackers.
So – no worries team! Come to Australia and work. Have I missed something? What are your thoughts about this? Let me know in the comments!