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Backpacker Levy In Down Under Still In The Pipeline

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Are you a backpacker from abroad in Australia, and were happy when it was disclosed that the government was mulling over not imposing a new tax on the people like you, under pressure from the critics?

If yes, this news report will certainly not be music to your ears. A new tax that would necessitate backpackers from overseas to give tax of up to 32.5 cents for every dollar earned is still expected to be brought in Australia.

Despite the fact that the plans for the tax--which as mentioned before, had been widely denounced--were made public during the year gone by, it was believed that a protest against would not allow the proposal to become a law and its introduction will be done away with.

But, the tax was named in the latest national Budget as due to become effective in July this year even though the concerned authorities moved rather speedily to say that the same may be delayed for six months for more discussion to occur.

Individuals in the country on a Working Holiday Maker Visa have the right to do a job while they are in the nation, and presently they shell-out tax just on the money they take home, more than the 18,200 dollar tax threshold.

Under the Working Holiday Maker Plan--which comprises the Work and Holiday (subclass 462) Visa and the Working Holiday (subclass 417) Visa--it is possible for the holders to reside in the nation for 12 months and do a job for a maximum of 6 months with any one recruiter/firm.

Working Holiday Makers are considered as being crucial to some specific businesses, such as tourism, hospitality and farming which over and over again require seasonal manpower even while there is already anecdotal confirmation that backpackers are moving to New Zealand this summer rather than risk giving the tax in Oz.

As per the National Farmers’ Federation, it has obtained over 31,000 signatures on a petition opposing the backpackers tax even while a concerned person reportedly stated that the proposal has already has an influence with vegetable growers concerned about hiring sufficient employees to produce their crops.

Growers in Australia depend on backpackers to make up for domestic labour famines and carry-out the high amounts of manual labour needed in the production of vegetables. The decision imperils the availability of this vital labour source, and may leave growers powerless to move crops off the field, he elucidated.

In a related development, Margy Osmond--the Tourism and Transport Forum Chief Executive, whose organization has reportedly opposed the tax--stated that she would hail a postponement for the tax to be talked about further, and issued the warning that backpackers are avoiding the Kangaroo Land in favour of New Zealand where backpackers shell-out tax of 10.5%.

Significantly, data from the Department of Immigration and Border Protection (DIBP) reveal that the figure of the backpackers landing in the country has decreased frequently over the previous two years, with more than 34,000 fewer visas provided in 2014-2015, vis-à-vis in 2012-2013.

 

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