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
March 2016 – Government Announces Senator Colbeck will lead a review into the tax with Austrade. Deadline April 6th to submit to the government.
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.
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)
“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)
The government has made no comment on the backpacker tax during the budget announcement. Below are the latest updates on the backpacker tax situation.
— James Stacey (@James_Stacey_) May 3, 2016
— Anna Vidot (@AnnaVidot) May 3, 2016
$ for inland rail and water infrastructure but no change on backpacker tax #Budget2016
— National Rural News (@NatRuralNews) May 3, 2016
— Peter McClintock (@farmerPeteMcC) May 3, 2016
— Natalie Kotsios (@NatalieKotsios) May 3, 2016
Update After the Election
— Colin James Bettles (@ColinJBettles) May 8, 2016
Joyce still can't give an answer of his ill-conceived backpacker tax #Election2016
— Joel Fitzgibbon (@fitzhunter) May 8, 2016
Please stay tuned for further updates.
All the best,