Win for Local Farmers With Proposed Backpacker Tax Rate Cut

- MEDIA RELEASE - Mark Coulton MP

The proposed 32.5 per cent tax rate that was to apply to working holiday visa holders from July 1 will be slashed to 19 per cent following strong representations by The Nationals in Government.

Federal Member for the electorate of Parkes Mark Coulton said the change recognised the importance of keeping regional economies strong.

“Agriculture makes a fundamental contribution to the local economy in the electorate of Parkes,” Mr Coulton said.

“The win on backpacker tax is a win for Parkes electorate farmers heading into the harvest season” Mr Coulton added.

“It’s one more way that we are working to ensure the electorate of Parkes remains a vibrant hub of industry and employment into the future.

“The Nationals, including Deputy Prime Minister and Minister for Agriculture, Barnaby Joyce, Assistant Minister Luke Hartsuyker and our Members of Parliament have been fearless champions on behalf of their regions, their agricultural stakeholders and common sense.”

Mr Coulton said the decision to reduce the proposed tax rate from 32.5 per cent to 19 per cent tax would maintain Australia’s status as one of the most competitive destinations for working holiday makers, while ensuring they pay a fair level of tax.

“The Government will also reduce the application charge for working holiday maker visas by $50 to $390. These changes will lower the cost of coming to Australia for working holiday makers and leave them with more money in their pockets to spend while here” Mr Coulton explained.

“That means that the Parkes electorate can continue to rely on strong seasonal labour support” Mr Coulton said.

“More than 1700 stakeholders contributed to the review through written submissions and face to face consultations. They made it clear that an early resolution to the tax rate issue was needed” he said.

“Today’s announcement demonstrates the Government listened and is now providing certainty to stakeholders for the upcoming harvest and tourism seasons.”

Information about the changes will be progressively uploaded to ato.gov.au

KEY FACTS

Working Holiday Maker visa applications

• The programme has grown significantly since its inception in 1975. There have been over 200,000 working holiday makers coming to Australia each year since 2011.

• There were 214,583 Working Holiday Maker visas granted in 2015-16.

• The reduction will apply to all Working Holiday (417) and Work and Holiday (462) visa holders.