Travel to Australia boost for backpackers
13 October 2016 by News DeskTravel to Australia for a working holiday has become a lot more attractive after key changes to tax and visa requirements.
Travel to Australia on a 417 or 462 visa has been made easier with the raising of age limits and an increase in working time limits.
Changes come in a bid to boost the number of visitors, backpackers and working holiday makers that choose Australia as their preferred destination.
The age of eligibility is to rise from 30 to 35 and visa-holders can now work for the same employer for 12 months, but no more than six months in the one location.
Backpackers are important for the tourism industry but even more important as a source of labour for Australia’s agricultural industry, particularly at key seasonal times.
In many parts of Australia such as northern Tasmania; northern Queensland; Darwin and south western Western Australia, farmers have real difficulties in employing enough workers.
Farmers have to harvest the fruit and ensure they get their product to market and they don’t have the luxury of time so workers on 417 and 462 visas have been an important supplement to the labour market in those areas.
Travel to Australia boost for backpackers
The Government has now set the tax rate applying to working holiday makers at 19 per cent on earnings up to $37,000, rather than the 32.5 per cent announced in the 15/16 Budget, with ordinary marginal tax rates applying beyond that point.
The Government will also reduce the visa application charge for working holiday makers by $50 to $390.
These changes will lower the cost of coming to Australia for working holiday makers and leave them with more money in their pockets.
In addition, all employers of 417 and 462 visa holders must register with the ATO. This will give them the entitlement to withhold at 19 cents rather than 32.5 cents.
The government is spending $10m over the next two years to support compliance operations of Fair Work Australia and the Australian Taxation Office to ensure that employers are doing the right things by working holiday makers when they are working in Australia.
Click here for expert help with travel visas: Travel Visas to Australia
Click here for expert help with Study Visas: Student Visas in Australia
Want to get a job Down Under? Click here for expert help: How to Get a Job in Australia
Click here for tourist information about Australia: Visit Australia
