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AUST RALI A’ S I RI S H N E WS PA P E R December, 2016 - January, 2017 | Volume 29 – Number 12
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WORKING HOLIDAYMAKERS WILL BE TAXED AT 15 PER CENT
Deal done on backpacker tax Many working holidaymakers have been paying little or no income tax by declaring themselves residents for tax purposes. This loophole has now been effectively closed. The motion was passed on the year’s final parliamentary sitting day, ending more than 18 months of political back-and-forth over the tax rate, which ranged from 32.5 per cent to 10.5 per cent and in-between. Australian Prime Minister Malcolm Turnbull thanked the Greens and
senators Pauline Hanson and Nick Xenophon for their support, and said that the deal would “provide security and assurance for farmers and many industries across Australia”. “We don’t agree with this government on many things, but in the end our responsibility in this place is to the community that we serve,” said Greens leader Richard Di Natale, adding that this was a “commonsense victory for farmers”. “Ultimately what we faced was going
away from this place with regional Australians being sent to the wall and we weren't going to let that happen.” The new arrangements will be in place from January 1, 2017. Industry bodies and growers have welcomed the resolution, though the government has been criticised for its approach to developing this policy. “This outcome means that after 18 months of confusion and uncertainty, Australian growers can now finally move forward with certainty about the
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future of the working holidaymaker program,” said Ausveg CEO Simon Bolles. “The treatment of the backpacker tax issue is an indictment on our current Parliament, with growers seen to be held to ransom by political games. This must never happen again. The far mers and growers of Australia deserve better.” Print Post No 100007285
THE Australian government has come to an agreement on the so-called backpacker tax, passing legislation to tax working holidaymakers at a rate of 15 per cent. The backpacker tax passed the Senate with the support of the Greens on December 1, though the proposed plan to tax 95 per cent of backpackers’ superannuation has been brought down to 65 per cent. This means that backpackers face an effective tax rate of 21 per cent on their earnings.