Budget Blows for Backpackers

Budget Blows for Backpackers

Announced in the federal budget this week, the federal Government has decided to forge ahead with the 32.5 per cent backpacker tax on working holiday makers.

Backpacker visitors will now pay a marginal tax rate of 32.5% from their first dollar earned, further encouraging them to take their holiday in New Zealand.

“This budget locks in a tax which will deliver a negative result for Australia’s tourism industry and which will drive our backpacker visitors into the arms of our New Zealand competitors,” said Peter Shelley, Managing Director of the Australian Tourism Export Council (ATEC).

Tourism & Transport Forum Australia (TTF) CEO Margy Osmond is also bitterly disappointed with the Government’s decision.

“Working holiday backpackers are a crucial source of labour for tourist operators in remote and regional parts of Australia. These are businesses that are heavily influenced by seasonality and locations where it is extremely difficult to find local or permanent staff.”

Shelley has said that ATEC and other concern industry representatives will be pushing hard on this issue during the upcoming election.

“Australia’s tourism industry will not stand by and watch as the Turnbull Government introduces a tax that sends out a message that working holiday makers are not welcome – a message that is in stark contrast to the growth-focused approach taken by New Zealand.”

But the Federal Budget is not all bad news for Australia’s booming visitor economy.The Coalition has maintained its election commitment to not increase the Passenger Movement Charge (PMC), establish a framework for the commercialisation of the Passport Application Lodgement Service (PALS) while also re-setting the macroeconomic settings to support growth and jobs.

“The Federal Government’s decision to stay its hand on visa fees and the continuing freeze of the Passenger Movement charge at the current $55 rate is good news,” said Ms Osmond.

The Government has also ensured Australians are fairly rewarded for effort and hard work which will see around 500,000 Australian’s avoiding the 37 percent marginal tax rate. This will mean more Australians will have additional discretionary income to spend on domestic and international travel.

With this tax cut, record low airfares and the continued freeze on the PMC, means there has never been a better time to travel.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

    Latest comments
    1. …yes abandon pmc, visa fees and no tax to backpackers….. this formula is a sure winner for the tourism industry and australian workers… however, government should abandon health care and retirement pensions… no government in the world can afford them anyway… let the populace know you’re on your own…

    2. This really is disgusting, the backpacker’s are not making millions, but this Government is ignoring all those big companies deliberately avoiding Tax

atec backpackers Federal Budget tourism & transport forum

Latest News

  • Cruise

Princess Cruises unveils Sanctuary Collection, Star Princess to sail Alaska in 2026

From the sunny port of Barcelona, the Sun Princess welcomed worldwide media aboard for an update on what’s new and what’s next for Princess Cruises today, 23 April. The setting also doubled as the official naming ceremony for Princess’ first sphere class ship which was live streamed around the ship for all guests to enjoy. […]

  • News

Collette special offers across peak northern summer season

Global tour operator Collette has announced a series of special offers on selected dates across a range of tours in the peak northern hemisphere 2024 summer season. Greece The offers include ‘Greece & Its Islands’ features classics such as the Parthenon as well as the picturesque islands of Mykonos and Santorini. A saving of $700 […]

  • Aviation
  • News

Air India and All Nippon codeshare between the two countries

Air India and All Nippon Airways have signed a codeshare agreement connecting their networks. The new commercial partnership will provide more travel opportunities for customers of both India’s leading global airline and the largest Japan’s largest carrier. Effective from 23rd May, the Air India and All Nippon Airways agreement will see passengers fly to their […]

  • News

A&K offers minimum 18 weeks paid parental leave

A&K Travel Group will now provide a minimum of 18 weeks paid parental leave for both care-givers, setting a new standard for the travel industry. By providing 18 weeks of paid time off for all new parents, regardless of gender, A&K Travel Group is not only enabling parents to spend valuable time with their newborns […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]