FARMERS have welcomed the federal government’s revised backpacker tax.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The federal government has announced a watered down tax rate for working holidaymakers from a proposed 32.5 per cent to 19 per cent from January 1, 2017.
The controversial initial proposal was put on hold pending the results of a broad review.
NSW Farmers president Derek Schoen said it was good news for the agriculture industry and working holidaymakers.
“When the government first announced the tax rate of 32.5 per cent, it sent shockwaves through the industry,” he said.
“The initial backpacker tax proposal would have significantly reduced the inflow of working holidaymakers, decimating the supply of seasonal workers relied heavily by the farming sector.
“Working holidaymakers also contribute significantly to the rural and regional economy.”
The changes will also make applying for a working holiday visa cheaper.
The new package follows a review led by Deputy Prime Minister and Minister for Agriculture and Water Resources Barnaby Joyce said Assistant Minister and Cowper MP Luke Hartsuyker.
Mr Hartsuyker said the announcement outlining the new conditions to working holiday visa arrangements was a major win and a great result for the North Coast.
“Thanks to a concerted effort from The Nationals in response to calls from the electorate, the tax rate applying to working holidaymakers will be 19 cents in the dollar on earnings up to $37,000,” Mr Hartsuyker said.
The government will reduce the application charge for working holidaymaker visas by $50 to $390, and extend the age of applicants from 30 to 35.
Working holidaymakers will be able to work for the same employer for up to 12 months.
“These changes will lower the cost of coming to Australia for working holidaymakers and increase the number of people eligible to travel and work in Australia under a working holiday visa,” Mr Hartsuyker said.
“These changes were made in a bid to make areas like to North Coast a more desirable destination for this type of holidaymaker.”
The federal government will increase the tax on working holidaymakers’ superannuation payments when they leave Australia to 95 per cent.
There will also be a one-off $5 increase to the passenger movement charge when people leave Australia from July 1, 2017.
Some 200,000-plus working holidaymakers come to Australia each year.
The package still has to pass the Senate.