The Government has announced its decision to lower the amount of tax charged to working holiday visa holders, known as the ‘backpacker’s tax’, from 32.5 per cent to 19 per cent.
The Government application charge for working holiday visas was also reduced, bringing the cost down from $440 to $390.
Changes to the working holiday scheme will also provide greater flexibility for employers. Employers who have premises in different regions will be able to employ a working holiday visa holder for 12 months, with the worker able to work for six months in both regions.
Since the tax was first announced in the 2015-16 Budget, it has been a contentious topic among the farming and tourism sectors.
President of The National Farmers’ Federation, Brent Finlay stated, “We are delighted to see Government listening to its constituency and not put in place a tax that would have hurt farm production and ultimately, the Australian economy.”
Meanwhile, ALP and Independent Senator for Tasmania Senator Lambie from the ALP and Federal Opposition has called on the Government to do more by supporting a new Backpacker Tax which would at least match New Zealand’s tax, set at 10.5 per cent.
Source: Migration Institute of Australia