Latest News

Back to Latest News back

 

Federal Parliament finally agrees 15% backpacker tax

Federal Parliament finally agrees 15% backpacker tax
December 2, 2016

The Federal Government’s backpacker tax finally passed into law yesterday evening after the the Senate backed the 15% rate in exchange.

After a week of uncertainty and false starts surrounding the tax, the Federal Government made a series of concessions to minor parties to get the legislation through the Upper House, including a $100 million commitment to Landcare and a scrapping of its plan to tax 95% backpackers' superannuation (which it reduced to 65%).

With the tax set to start from 1st January 2017, the Tourism & Transport Forum Australia (TTF) welcomed the end of the 18-month backpacker tax saga.

TTF Chief Executive Margy Osmond commented “this has been a long, hard slog by the tourism industry over the past 18 months to reach this common sense compromise on the backpacker tax and we are very pleased that the matter is finally resolved so that we can get on with the job of growing the visitor economy.

“There are a lot of lessons to be learnt out of this issue. Consultation and negotiation with industry early on is the key to delivering a policy outcome that supports the industry and allows the Government to achieve its goals.

“The tourism industry has made it very clear that we will not sit back and be treated as a ‘cash cow’ by any Government or any political party. We have a voice and it is growing in strength in the new economy that will support Australia’s future.”

Osmond said that the final decision on the backpacker tax would allow the industry to get back to promoting Australia as a fantastic destination for a working holiday, adding “for the last 18 months, the industry has not been able to provide certainty to backpackers on what tax arrangements they would face if they decided to travel to Australia, now we can.

“The backpacker tax saga is a powerful reminder that government decisions have a real world impact and we can avoid unnecessary damage to the visitor economy if industry and government work together from day one.”

TTF has been vocal advocate for zero or at the very least a much lower backpacker tax rate than the original 32.5% proposed to ensure that working holiday makers continue to visit Australia, spend their money in regional and rural communities and fill critical job shortages in those areas.

TTF has also worked to achieve a compromise on the increase in the holiday tax - the Passenger Movement Charge - with an agreement reached by the Parliament to freeze any future increases for the next five years.

Months of uncertainty surrounding the tax status of working visitors has undoubtedly damaged Australia as a destination, with a recent Monash University survey finding that 62% of the working holidaymakers would consider going to New Zealand over Australia because of the backpacker tax.

28th November 2016 - 15% BACKPACKER TAX COMPROMISE ‘A VICTORY FOR COMMON SENSE’

28th November 2016 - FEDERAL GOVERNMENT LOOKS FOR 15% BACKPACKER TAX COMPROMISE

28th September 2016 - FEDERAL GOVERNMENT FIGURES CONFIRM WORKING TOURISTS’ EXODUS AHEAD OF BACKPACKER TAX

27th September 2016 - FEDERAL GOVERNMENT ANNOUNCES PARTIAL BACKPACKER TAX REVERSAL


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Worldwide Sports Management

Principal Consultant Simon Weatherill has spent the last 20 years developing the world renowned Melbourne Sports Hub, as former Chief Executive Officer of the State Sports Centres Trust…

read more

Aquatics / Consultants / Recreation / Sport / Venues

 
 

PlayRope

Playrope Aqua-Fun, are the Australian & New Zealand exclusive distributors for Vortex Aquatic Structures International, the world leader in aquatic playgrounds and urban water landscapes.…

read more

Aquatics / Attractions / Parks / Play / Recreation

 
 

PAYSMART

Headquartered in Brisbane with an Australia-wide network of satellite offices, PaySmart is one of Australia’s largest and longest-standing direct debit billing companies. In 1996 we began…

read more

Access / Billing / Fitness / Technology

 
 

BioLab Australia Pty Ltd

BioGuard is Australia and New Zealand’s most trusted supplier of premium, innovative and affordable commercial water treatment systems and chemicals. BioGuard offers a comprehensive range of…

read more

Aquatics / Technology / Waterparks

 
 

DEBITSUCCESS

Over the past 10 years Debitsuccess has been providing expert billing services to businesses across Australia. Debitsuccess is now the largest full service direct debit provider in Australasia,…

read more

Billing / Finance / Fitness / Golf / Recreation

 
 

Sportybots

We are the leading providers of kids fun multi-sports programs for Sport and Recreation Centres. Programs cover twelve common sports as well as Gross Motor Skill Development and suit children from as…

read more

Fitness / Play / Recreation / Sport / Wellness

 
 

iDwala Pty Ltd

iDwala is the Community Sports Surface Specialist offering the highest quality designs and technical expertise to Councils, Schools and Sporting Clubs looking to create sporting…

read more

Consultants / Design / Recreation / Sport / Surfaces

 
 

MYRTHA POOLS

Founded in 1961, Myrtha Pools® quickly became Italy’s première swimming pool company, and has since grown into one of the world's leading swimming pool construction…

read more

Aquatics / Design / Play / Waterparks / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business