Backpackers wanting to travel to Australia on working holiday visas will benefit from a raft of new measures to visa arrangements announced this week.
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As of 1 January 2017, the tax rate for working holiday-makers will be 19 per cent, not the 32.5 per cent rate set prior to the review.
The changes also make applying for a working holiday visa cheaper and increase the age of applicants from 30 to 35.
Federal Member for Cowper Luke Hartsuyker said the changes to conditions for working holiday visas were a great result for the north coast.
“Thanks to a concerted effort from the Nationals in response to calls from the electorate, the tax rate applying to working holiday makers will be 19 cents in the dollar on earnings up to $37000,” Mr Hartsuyker said.
“The Government will also reduce the application charge for working holiday maker visas by $50 to $390 … and backpackers can now work for the same employer for up to 12 months.
“These changes will lower the cost of coming to Australia for working holiday makers and increase the number of people eligible to travel and work in Australia under a working holiday visa.
“They also make areas like to north coast a more desirable destination for this type of holiday-maker.”
The Government recognises that working holiday makers are an important part of Australia’s $43.4 billion tourism industry and a key source of labour, particularly in the agriculture, horticulture, tourism and hospitality sectors.
It also acknowledges that working holiday makers should pay fair tax on their earnings.
In addition, the Government will fund a $10 million global youth targeted advertising campaign to potential working holiday makers.
The changes are budget neutral.
The Government will increase the tax on working holiday makers’ superannuation payments when they leave Australia to 95 per cent.
There will also be a one-off increase to the Passenger Movement Charge of $5.00 from 1 July 2017.
