Australian government forced to think again on backpacker tax
- 8 years ago
The Australian government has said it will look again at a planned tax hike for foreign travellers who work in the country.
A labour shortage for jobs like picking fruit means young backpackers have been encouraged to work on farms with special visas. They get to stay for a second year if they do three months work in rural Australia.
But faced with a big budget deficit, Prime Minister Malcom Turnbull put forward plans to increase the amount they are taxed.
Up until now people on working holiday visas have been allowed to earn up to A$18,200 (11,800 euros) tax free, the same as locals. Above that threshold have they paid 32.5 percent tax.
The government review follows farmers complaints that the tax is dissuading people from coming to Australia and consequently they are having trouble finding labourers.
That is proved by a fall in the number of working holiday visas issued.
Back-tracking on the backpacker tax
The ruling conservative government – which relies heavily on r
A labour shortage for jobs like picking fruit means young backpackers have been encouraged to work on farms with special visas. They get to stay for a second year if they do three months work in rural Australia.
But faced with a big budget deficit, Prime Minister Malcom Turnbull put forward plans to increase the amount they are taxed.
Up until now people on working holiday visas have been allowed to earn up to A$18,200 (11,800 euros) tax free, the same as locals. Above that threshold have they paid 32.5 percent tax.
The government review follows farmers complaints that the tax is dissuading people from coming to Australia and consequently they are having trouble finding labourers.
That is proved by a fall in the number of working holiday visas issued.
Back-tracking on the backpacker tax
The ruling conservative government – which relies heavily on r