Decision on backpacker tax a win for region

SEPTEMBER 27, 2017: TODAY’S announcement by Treasurer Scott Morrison that a backpacker tax of 19 cents in the dollar will be introduced next year, rather than a proposed 32.5 cents, is a win for our regional economy.Those in the horticultural, agricultural and tourism sectors in this region had legitimate concerns about the effects of a backpacker tax and I was happy to champion their cause and seek a fairer deal to ensure that the backpacker workforce was not decimated.Regions like Bowen and the Burdekin have enough challenges to deal with, and this decision today gives them back the workforce certainty they need. It also ensures that prime tourism destinations for backpackers like the Whitsundays are not affected by a downturn in visitor numbers.However, we’ve still achieved an outcome which will result in working holiday makers paying their fair share of tax while they are here.The following changes were approved by Cabinet today:

• From 1 January 2017 the Government will set the tax rate applying to working holiday makers at 19 per cent on earnings up to $37,000, rather than the 32.5 per cent announced in the 2015-16 Budget, with ordinary marginal tax rates applying after that.
• Further encouragement will be achieved by dropping the application charge for working holiday maker visas by $50 to $390.
• The Government will increase the tax on working holiday makers’ superannuation payments when they leave Australia to 95 per cent. This is consistent with the objective of superannuation, which is to support Australians in their retirement
• There will also be a one-off increase to the Passenger Movement Charge of $5.00 from 1 July 2017.