Backpacker tax: Federal Government backs down on plan

Written on the 28 September 2016

The Federal Government has responded to backbench and industry pressure and dumped the budget plan to impose a 32.5 per cent tax on backpacker workers.

Key points:

Backpacker tax first proposed in 2015 budget, faced backlash from industry and backbench
Passenger departure tax will be increased by $5 to offset lower tax rate
Government announced $10 million fund for tourism sector to market backpacker jobs
Under a compromise deal, working holidaymakers will be taxed at 19 per cent from their first dollar earned instead.

Treasurer Scott Morrison announced the deal after it was signed off by Cabinet on Tuesday, saying the backbench committee pushing for the changes was also satisfied.\

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Source: ABC Rural