‘Backpackers tax’ to be delayed and reviewed

‘Backpackers tax’ to be delayed and reviewed

‘Backpackers tax’ to be delayed and reviewed

The government has announced that it will undertake a review of the broad range of issues affecting the supply and taxation of working holiday maker 417 and 462 visas.

To provide for further consideration of these issues, the government will defer, for six months, the commencement of the previously announced changes to treat all working holiday makers as non-residents for tax purposes from July 1 2016, pending the outcome of the review process.

Editor: Even the Australian Greens oppose this ‘backpacker tax’, saying “No one wins with the backpacker tax, farmers and growers need to attract workers and it serves as an disincentive to backpackers to work in the agricultural sector.”

This review will form part of a board review of the workforce shortages faces by the agriculture and tourism industries.

The ‘Review of 417 and 462 Visa Labour’ will report by mid-October, with agreed changes to take effect from 1 January 2017.

Ref: Minister for Small Business and Assistant Treasurer’s media release 17 May 2016


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