The Australian government has backtracked on plans to impose tax on working holidaymakers.
Under the initial plans, from July working holidaymakers would have had to pay a 32.5 per cent tax on each dollar earned. Working holidaymakers currently only pay tax on money earned above the AUS$18,200 tax threshold.
However, after strong protests from figureheads in some industries, including farmers, and tourism operators, the government has decided to stall the implementation of backpacker tax – for not, at least.
“The concept of taxing working holiday makers at 32.5 per cent on every single dollar they earn is foolhardy when they have the entire world as a destination to travel to and spend their money in,” said Tourism and Transport Forum chief executive Margy Osmond.
Nearly 48,000 people had signed an online petition calling on the government to dump the controversial plan.
However, in spite of the reprieve it is believed that the government still intends to introduce the backpacker tax from the start of next year.
Article by David Fuller