Backpacker tax and Aussie election
29 June 2016 by News DeskA new tax proposed by the Federal Government would force these workers to go elsewhere and make it hard for farmers to find the labour they need, the National Farmers' Federation says.
The Government wants to change the tax-free status of backpackers and make them pay a 32.5 per cent tax on their entire income.
The new tax was due to come into force in July 2016 but pressure from the travel, farming and tourism industries has forced the government to delay its’ plans until 2017 while a national review is undertaken.
“The government aimed to raise more than $125 million a year from the tax but it would cost the country many times more in lost production as backpackers are bound to stay away or simply quit working on farms,” says Darrell Todd, founder of thinkingaustralia.
The Government planned to generate $540 million over the next four years from the tax but farmers say government figures rely on backpackers still coming to Australia.
The Government’s changes were, but have been delayed to 2017 while a review is undertaken.
Backpacker tax and Aussie election
The agriculture and tourism sectors presented an alternative proposal, which they claim would reap more than the $500 million the Government hopes to raise.
The Coalition has delayed the introduction of the new tax, but that is unlikely to be enough for farmers, who are angry, dismayed, and calling for certainty.
Labor will commit only to sit down and talk to the industry about the issue if it is elected.
Darrell Todd says: “I believe common sense will prevail and the backpacker tax will be scrapped altogether.”
Click here for expert help with travel visas: Travel visas to Australia
Want to get a job Down Under? Click here for expert help: How to get a job in Australia
Click here for expert help with Study Visas: Study Visas down under
Click here for tourist information about Australia: Visit Australia
