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Work in Australia: U-turn on backpacker tax

10 December 2016 by News Desk

Work in Australia where working holiday-makers will now only have to pay 15% tax on their earnings instead of 32%.

Work in AustraliaWork in Australia where the government wanted to introduce a tax rate of 32% on working holiday-makers.

A compromise was put forward last week but it was rejected by the Australian parliament.

Now senators have voted to pass a bill establishing a 15% income tax rate for temporary foreign workers.

The tax rate, applied to overseas workers engaged in short-term employment in Australia, has been a controversial issue for the past 18 months.

Farmers and tourist groups lobbied hard for the government to change its’ mind over their original 32% tax rate.

Farmers say working holiday-makers – backpackers – are vital to fill labour shortages during key harvest times.

There has been a big fall in the number of backpackers applying for working holiday visas in Australia since the government first announced its’ 32% tax plan.

Work in Australia: U-turn on backpacker tax

People aged between 18 and 30 years from eligible partner countries may obtain a Working Holiday Visa (subclass 417) or a Work and Holiday Visa (subclass 462).

The visas allow holders to holiday (i.e. vacation) and work in Australia for up to a year. Holders are generally restricted from working for the same employer for more than six months.

The main purpose of the visas is to encourage “cultural exchange and closer ties between Australia and eligible countries.”

In addition, the programme helps Australian regional employers by encouraging working holiday visa holders to seek short-term and casual work in specified industries in regional Australia.”

Those who perform specified work in an eligible regional Australian area for a minimum of three months may be eligible for a second visa under the program.

Regional Australia refers to towns, small cities, and areas outside of the major capital cities.

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 live and work in Australia? Click here for expert help: Skilled Migration to 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


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