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Travel to Australia: departure tax rise

26 October 2016 by News Desk

Travel to Australia where the government plans to raise the departure tax by $5 per person to $60.

Travel to AustraliaTravel to Australia is bound to be impacted by the tax increase and farmers and tourism chiefs have spoken out against the government’s plan.

The increase is aimed at helping balance losses from the new 19 per cent backpackers tax from the first dollar earned, rather than the previously announced 32.5 per cent.

“$60 is a big deal, it’s a couple of days’ car hire, a couple of days’ accommodation,” Tourism and Transport Forum boss Margy Osmond said.

Barry Abrams from the Board of Airline Representatives of Australia said international airlines were disappointed about the lack on consultation and justification for seeking to increase the passenger movement charge.

Travel to Australia: departure tax rise

The government originally slated a 32.5 per cent tax rate from the first dollar backpackers earned in the 2015 Budget, but has since dropped it to 19 per cent.

The package also includes a 95 per cent tax on superannuation payments once working holiday-makers leave Australia and a $5 increase in the international departure tax from July 1, 2017, to $60.

Backpacker numbers started to fall the day the tax was originally announced and the problem continues, threatening to create labour shortages during harvest seasons.

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