Australia Emigration Ireland Living Tax Back

Australia To Ditch The 32.5% Backpacker Tax

Australia To Ditch The 32.5% Backpacker Tax September 27, 2016

I moved to Australia in 2013 and created this blog to help Irish people living in Australia. 10 million visitors later it now has evolved into a job board, flight company and offers support with many services Irish people need when they move to Australia. Pop over to my resources page(irisharoundoz.com/resources) to find every service and product I recommend. Thanks for stopping by and hope to see you here again.

Backpacker tax Australia
(Last Updated On: August 2, 2017)

I was only thinking the other day, whatever happened to that so-called “backpacker tax” that was meant to come in?

Well according to Business Insider and ABC the Turnbull Government has cut back the controversial “backpacker tax”(thank god)

Treasurer Scott Morrison will reduce the $500 million “backpacker tax” his predecessor Joe Hockey announced in the 2015 Budget.

Scott Morrison has announced a cut in the planned backpacker tax from 32.5% to 19%, to be funded by an increased charge on all passengers leaving Australia.

It received more than 1,700 submissions overwhelmingly against the tax.

On Tuesday the Treasurer announced that from 1 January the backpacker tax would be 19% of the first $37,000 that backpackers earn

In other news: Ms Chapman said she was pleased with visa changes that would increase the age limit on so-called working holiday makers from 30 to 35.

The government also announced a $10 million fund for the tourism sector to promote backpacker jobs.

Australia seems to be in a panic over the number of backpackers coming to Australia.

The agriculture industry says visitor inquiries are currently down 40%.

But don’t go celebrating the backpacker tax just yet…..

We have just learnt that they will be taking 95 cents of every dollar earned on your Superannuation

Backpacker tax Australia

Surely not? While the above websites have been clearly celebrating that the backpacker tax is going away.

Nobody is talking about the fact that the Australian government will be taking 95 cents of every dollar you earn in your Super. 

The average superannuation refund is $3380. More info here

Why are they taking this 95%? To pay for the changes, which hit the Budget by $365 million, the tax on superannuation payments to working holiday makers will increase to 95% when they leave Australia.

To pay for the changes, which hit the Budget by $365 million, the tax on superannuation payments to working holiday makers will increase to 95% (previously ~35%) when they leave Australia.

When does this backpacker tax come into play?

At present, backpackers, like other workers, do not pay any tax until their income exceeds A$18,200 a year.

The government had expected to collect A$500m from the backpacker tax, which was first proposed in the government’s 2015 budget.

To offset the lower tax rate, the tax on passengers departing Australia will be increased by A$5(basically, you now pay $5 when leaving Oz)

The tax changes are set to come into force on 1 January 2017.

Other news: 417 and 462 visas and the application charge for working holiday maker visas will be reduced by $50 to $390.

You can read more about the backpacker tax on the following news sites: ABC, Financial times, BBC, The Guardian.

What do you think about this new backpacker tax + the superannuation Good or bad? Comment below:

 

Search Our New Job Board:


Shares 0

I moved to Australia in 2013 and created this blog to help Irish people living in Australia. 10 million visitors later it now has evolved into a job board, flight company and offers support with many services Irish people need when they move to Australia. Pop over to my resources page(irisharoundoz.com/resources) to find every service and product I recommend. Thanks for stopping by and hope to see you here again.

Subscribe To Personalized Notifications

You are subscribing to jobs matching your current search criteria.

Email Notifications

Email notifications will be sent to you Subscribe

 

Custom RSS Feed

Your personalized RSS Feed is below, copy the address to your RSS reader. Subscribe