The Federal Government has indicated it would consider lowering the proposed rate for the so-called backpacker tax, following ongoing backlash from the agricultural and tourism industry since the tax was announced in the 2016-17 Federal Budget.
The Federal Government’s original backpacker tax would have seen working holiday visa holders pay 32.5 cents for every dollar earned in Australia from 1 July 2016. However the start date for the controversial tax has now been delayed until January 2017, with the Government considering proposals to lower this rate.
Tourism Minister Richard Colbeck said The National Farmers Federation’s proposal for 19 per cent would be genuinely considered by the government, admitting the 32.5 per cent rate is not sustainable and would pose great uncertainty for farmers and the tourism industry whose businesses depend heavily on backpacker arrivals.
“I don’t see it staying the same – we will have to make some changes,” Mr Colbeck told AAP in Launceston on Friday 24 June, 2016.
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