As many of you have probably heard by now the Australian budget was released yesterday.
The Federal Government will save hundreds of millions of dollars by increasing visa application fees and forcing some foreigners working in Australia to pay more tax.
From July 2016, those on a working holiday in Australia will no longer enjoy a tax free threshold of up to $18,200, and will instead be forced to pay 32.5 per cent tax from their first dollar earned.
That measure will save the budget $540 million over four years.
Not only that but the Government is also banking $440 million in savings by increasing fees for visa applications made overseas and by moving to “full cost recovery” for citizenship costs.
As expected, foreign investors wanting to buy real estate in Australia will be charged an application fee of between $5,000 and $10,000, depending on the value of the property, raising $650 million for the budget over four years.
So not the best news for anyone of us on a working holiday visa! There does seem to be a LOT of similarities between when pre-recession Ireland and these latest changes. Along with a debilitating Australian dollar.
What do you think? Signs of a recession?