Review of ‘backpacker tax’ announced

March 30, 2016

The TAA National Board met with the Tourism Minister, Senator the Hon. Richard Colbeck and the new Minister for Trade & Investment, the Hon. Steven Ciobo MP in early March. Amongst a number of items we raised our concerns at the negative impact of the backpacker tax. 

Following this meeting a number of tourism industry associations inclusive TAA attended an industry consultation with Federal Tourism Minister, Richard Colbeck, Assistant Minister to the Deputy Prime Minister, Keith Pitt, and Assistant Minister for Agriculture and Water Resources, Anne Ruston on the Federal Government’s backpacker tax. 

The Government is seeking to reach a solution with both the agricultural and tourism sectors which ensures we remain competitive in attracting working holiday makers to Australia.  Indications are that the proposed taxation rate from the first dollar will be lowered in line with other temporary visas. Treasury is undertaking financial modelling on a number of scenarios.