Discussions over backpacker tax gather momentum

Discussions over backpacker tax gather momentum

The Federal Government’s industry consultation on the proposed backpacker tax got well underway as the chief executives of some of Australia’s leading tourism organisations met with Tourism Minister Richard Colbeck yesterday.

Also in attendance at the meetings were the Assistant Minister to the Deputy Prime Minister, Keith Pitt, and the Assistant Minister for Agriculture and Water Resources, Anne Ruston.

Colbeck announced the review last week at Tourism Australia’s Destination Australia Conference in Sydney.

“We must remain globally competitive as a desirable destination that welcomes Working Holiday Makers,” he said.

“They fill vital labour gaps, often in rural and regional areas that depend on their contribution and they make a great addition to our multi-cultural society.”

The tourism industry applauded Colbeck on the consultation process which came about after the sector raised concerns over the negative impact of the proposed 32.5% tax on working holiday makers from the first dollar that they earn – expected to be a reduction in the number of international visitors applying for these working visas.

“Working holiday makers are a crucial source of labour for the industry especially in regional Australia,” a joint statement from tourism stakeholders, including the Tourism and Transport Forum and Tourism Accommodation Australia, said.

“The strong growth in the visitor economy that has been confirmed in the latest visitor survey figures is placing additional pressure on an industry that is already facing a significant labour shortage projected to increase to 123,000 people by 2020.”

The organisations also underlined the contribution of working holiday makers in the area of cultural exchange, and also highlighted their earnings of around $15k per annum which are mainly spent during their time in Australia.

 

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