I was only thinking the other day, whatever happened to that so-called “backpacker tax” that was meant to come in?
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!
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.
What do you think about this new backpacker tax + the superannuation Good or bad? Comment below: