14 October 2016

Results of the Backpacker Tax

MEDIA RELEASE

The. Hon. Scott Morrison MP

Better working holiday maker tax arrangements

The Turnbull Government recognises that working holiday makers are an important part of Australia’s $43.4 billion tourism industry and a key source of labour, particularly in the agriculture, horticulture, tourism and hospitality sectors. We also recognise, as do stakeholders, that working holiday makers should pay fair tax on their earnings.

At the 2016 election the government committed to review the tax arrangements for working holiday makers by the end of the year.

Today Cabinet has approved the following changes:

From 1 January 2017 the Government will 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 2015-2016 Budget, with ordinary marginal tax rates applying after that. The Government will also reduce the application charge for working holiday maker visas 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 to spend while here.

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