Home » Australia Working Holiday Blog » Posts » Government To Make Decision on Backpacker Tax
Share This Article

2nd year visa job

The Honourable Senator Richard Colbeck has been working with Austrade investigating the affects of the proposed Backpacker Tax. The deadline for this recommendation to be submitted to government is April 6th 2016, we will be updating this post throughout the day with the latest updates.

What We Know

May 2015 – Government Announces Backpacker Tax In Budget

Jan-Feb 2016 – Farming & Tourism Stakeholders begin to ramp up their protests against the tax and the wider harm it will have on the Australian Economy

Feb 2016 – 5,000 Working Holiday Jobs members fill out the backpacker tax surveyresults are sent to various ministers and stake holders.

March 2016 – Government Announces Senator Colbeck will lead a review into the tax with Austrade. Deadline April 6th to submit to the government.

Current Proposal

Every dollar earned by working holiday makers will be subject to a 32.5% tax. How this will be implemented is unsure, whether employers will be required to without 32.5% tax weekly or how the system will work is still to be confirmed.
This years tax refund will not be affected.

The Decision


We are expecting the decision to be publicly announced at 7.30pm AEST on Tuesday May 3rd ( It will be announced with the entire budget)

The Whispers

“We are starting to get these indications that 32.5 per cent is where it is going to land,” Tourism & Transport Forum chief executive Margy Osmond said.

“It is understood the group presented a revenue-neutral proposal to cabinet, involving a 19 per cent tax on earnings, a 60 per cent tax on superannuation contributions and opening the working holiday visa program to more countries to increase revenue.” Courtesy of Sydney Morning Herald.

“I’m insisting the government backflip on this, go back to the drawing board, do some economic modelling, do some consultation with the farm community to work out what is doable here and what is not.” Shadow Agricultural Minister. ( courtesy farm weekly)

“If the Government was serious about talking about development of the North it would today admit that it got the backpacker tax wrong and it would go back to the drawing board,” he said.” Shadow Agricultural Minister. ( courtesy farm weekly)

Budget Announcement

The government has made no comment on the backpacker tax during the budget announcement. Below are the latest updates on the backpacker tax situation.


Update After the Election


Please stay tuned for further updates.

All the best,

Working Holiday Jobs Team

Dimi /

G'day Guys, My name is Dimi, I'm one of the admins/starters of Workingholidayjobs.com.au . Freddie and I started this community to help working holiday makers and harvest workers find jobs in an easy and transparent manner. We're not just here to help you finding jobs, anything related to your working holiday down under, we will help try find a way to make it easier for you too achieve. Getting your tax done, deals, travel spots... you name it. If you ever have any questions or feedback please don't hesitate to ask. We're always looking for ways to improve the site and help meet our members needs and build a stronger community. Hope you're doing well and best of luck. Cheers Dimi

4 Responses to “Government To Make Decision on Backpacker Tax”

  1. Nick

    What’s the decision??

  2. Ben

    I am in Australia on a working visa currently until the end of March 2017, possibly March 2018 if I do the farm work I intend to so that I qualify for a second year. Will this new backpackers tax affect me or will it continue as it is currently?

    • Dimi

      It will affect you. This year you should be able to be deemed as a resident if you meet the criteria. Next financial year you will be taxed at 15% flat rate.


Leave a Reply