The Assistant Treasure Kelly O’Dwyer has today announced that there will be a form delay of the backpacker tax for 6 months while a complete review will be undertaken.
The Certainties
You can keep working until December 31, 2016 with the tax free threshold on your side. ( Meaning you don’t have to pay the 32.5% backpacker tax, the first $18,000 you earn will be under the tax free threshold)
( We would almost be confident in saying this will be until June 30th 2017. This is an educated guess on our behalf. Our point of view here is it would be hard to for the ATO to determine who earned money before or after January 1st when claiming a tax refund. The admin could outweigh the revenue)
Our advice is too actively seek a backpacker job this calendar year as opposed to next year.
You can follow us on Facebook or become a free working holiday jobs member to keep up to date with the latest backpacker work and travel news.
If you are still confused about taxation you can always speak to a tax agent.
You can also try this free tax refund calculator to help you determine where you stand.
Moving Forward
A full review will take place to make Australia a more competitive destination. There could still be a tax introduced but it would be at a lower rate. There is even talk of creating a different visa class. This we will keep you updated on.
Official Announcement
#ICYMI: Assistant Treasurer @KellyODwyer announces deferral of #backpackertax to January 1, 2017 #ausvotes #auspol https://t.co/MonFo1E6tx
— ABC News 24 (@ABCNews24) May 16, 2016
Prime Minister Acknowledges Issues
.@TurnbullMalcolm says there is 'no question' there have been problems with the proposed backpacker tax #ausvotes https://t.co/AqLAtQ3ovI
— Sky News Australia (@SkyNewsAust) May 17, 2016
If you would like to lodge your tax refund now or get a free instant estimate you can follow the links provided.
