Government To Make Decision on Backpacker Tax

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 survey – results 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.

#backpackertax not dealt with in the Federal Budget, #ausag horticulture farmers remain with labor shortages. https://t.co/UGxnUKNnny

— James Stacey (@James_Stacey_) May 3, 2016

CONFIRMED: no #budget2016 relief on #backpackertax, but Treasurer strongly hints he'll have more to say during election campaign @abcrural

— 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

No #backpackertax rectification in the #budget16 , can our tourism industry survive this policy travesty? #agchatoz

— Peter McClintock (@farmerPeteMcC) May 3, 2016

Govt has 4 days, give or take, to act on #backpackertax before caretaker mode… or you can bet it will be a key election issue #agchatoz

— Natalie Kotsios (@NatalieKotsios) May 3, 2016

Update After the Election

#NEWS @Barnaby_Joyce says he's confident a resolution will be found on the backpacker tax @NationalFarmers #auspol pic.twitter.com/s0tuAct5MF

— 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,

Working Holiday Jobs Team