In what may be called a fairly positive development--from the perspectives of the backpackers from abroad, keen to work in Australia, and also some Australian businesses and farmers--a proposal to introduce a higher rate of tax for young individuals in the country with Working Holiday Visas has reportedly been delayed until not less than January the next year.
At present, backpackers, who do a job through their holiday in the nation, do not pay any tax on the earnings up to $18,000. However, the administration had made plans to begin a fresh tax level where they would fork-out 32.5% on every dollar taken home from July 01, this year.
Needless to say, the development resulted in a great hue and cry even while the Australian farmers, who make use of backpackers during the harvest time, and the hospitality and tourism businesses which also utilize a large number of backpackers, expressed their anger.
Presently, Assistant Treasurer Kelly O’Dwyer has duly corroborated that there will be an evaluation of the manpower subjects in regional and rural societies even as the latest tax will not be started until post that. Still, some people opine that this may be nothing but a rather cynical electioneering trick to influence rural voters before the Australian general election starts on July 02.
In case the incumbent regime storms back to power, then the matter could be suitably talked about once more, either in October or November. It denotes that in case the latest tax rate goes ahead, it would be doubtful that it would be in place prior to January the next year.
The people, who support rural societies, allegedly want the administration to ditch the tax. Several farming groups have reportedly indicated that the tax would dishearten young individuals from out-of-the-country arriving in the nation, and that consequently would seriously harm their supply of seasonal manpower.
Meanwhile, the National Farmers’ Federation of Oz has reportedly stated that the delay will only generate further doubts for farmers, who look forward to make use of the seasonal employees for crop picking at the end of 2016 and the beginning of the next year.
As per the NFF president, the backpacker tax ought to be discarded for the sake of the source of revenue of 1000s of key producers throughout the nation. He added that his organization will keep on opposing the administration’s decision to simply postpone the tax by six months instead of executing a solution for the farmers, who depend on the working holiday makers, to fill extremely crucial, temporary openings in their businesses.
He elucidated that backpackers are heavily depended upon by agriculture to cater to seasonal work necessities at peak times, chiefly through harvest. The NFF president added that a six month postponement does not, in any manner, ease that anxiety.