Monday 15th August 2016 - 7:42 pm

Tourist industry urges government to scrap its backpacker tax

by Alan Thornhill

 

Young travellers will avoid Australia if the Federal government does not scrap its planned backpacker tax, tourism and transport operators warned today.

 

Margy Osmond, CEO of the Tourism and Transport Forum, said Australia would see an even bigger exodus of young backpackers from Australia if the government persists with the tax..

 

The backpacker tax, introduced in the last Federal budget, would have seen backpackers paying 32.5 cents in the dollar in tax, from the first dollar they earnt in Australia.

 

At present working holidaymakers  only pay tax on earnings above the $18,200 tax threshold.

 

However the government announced before the July 2 election that it would review working holiday visas and postpone any changes to the current tax system until January next year.

 

The delay, in implementing the new backpacker tax will cost the Federal government an estimated $40 million.

 

However the tourism and transport operators want it scrapped altogether, not just suspended.

 

Ms Osmond warned that the most likely result of keeping the proposed tax would be an exodus of working holiday makers to other countries.

 

She described it as as “ill-considered cash grab.”

 

Ms Osmond said her Federation  had welcomed the commencement of the review.

 

And she said it would be “… making the strongest case on behalf of the tourism industry for the Government to abandon the backpacker tax.”

 

Ms Osmond recalled that the Federation had been  “…one of the first industry groups to sound the alarm on the impact of the backpacker tax.”

 

“…and we will continue to campaign for the Federal Government to abandon this ill-considered cash grab,” she added.

 

She said the tourist:  “…industry wants to work in a positive and supportive manner with the Federal Government to grow the sector.”

 

“But a 32.5 per cent tax on backpackers on every single dollar they earn while working in Australia is simply absurd,” she added.


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