The Australian Government is delaying the controversial backpacker tax by 6 months
The Australian Government has made the decision to delay the backpacker tax for six months pending a review of the tax which would see working holidaymakers taxed 32.5% on the dollar from the first dollar earned. Treasurer, Kelly O'Dwyer, announced the government would delay the tax for six months until 1 January 2017. In the meantime, they will be conducting a review of the tax.
The opposition, Labor, has stated that it wishes to scrap the tax which has proved unpopular with farmers and agriculturalists who rely on backpackers in high season. The fear is also that the tax won't bring in the €540 million expected as there has been a drop in the number of backpackers applying for visas.
Farmers are still concerned about the outcome of the delay. The National Farmer's Federation President, Brent Finlay, said ''The last thing we want is to be in the same situation in six months time, with no workable solution."
Tourism and Transport Chief Executive, Margy Osmond said, “The concept of taxing working holidaymakers at 32.5 per cent on every single dollar they earn is foolhardy when they have the entire world as a destination to travel to and spend their money in,”
For now at least, the tax is delayed and it remains to be seen whether the government will choose an alternative or scrap the tax completely.
Current tax rates are as follows:
Currently, if working holidaymakers are in the country for long enough to qualify as a resident, they can avail of the tax-free threshold and get a refund of the tax they overpaid.
The average tax refund Down Under is AU$2600
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