Backpacker Tax Locked in at 15%

Backpacker tax deal provides much needed certainty

The following is the press release from VTIC regarding the recent decision by the government to lock in a rate of 15%.

The Victoria Tourism Industry Council (VTIC) today welcomes the confirmation of the backpacker tax rate at 15 per cent. The compromise deal reached by the Coalition and the Greens provides much needed certainty to tourism businesses and working holiday makers alike, after months of delays and ongoing ambiguity.

Victoria Tourism Industry Council Acting Chief Executive Kristina Burke said: “It will be a relief to tourism businesses who service the backpacker sector that this matter has finally been resolved, but it is frustrating that it has taken so long.”
“The new package of a 15 per cent tax rate on income, combined with the 65 per cent rate on superannuation, is a significant improvement on the original proposal of 32.5 per cent. It will help ensure Australia remains a competitive destination for working holiday makers,” she said.

Youth travellers are an important market for Australian tourism and in the accommodation and restaurants and cafes industries (key segments of the visitor economy), working holiday makers made up the largest component of international workers, at around 6-7 per cent of the total employment.

It is hoped that today’s announcement will go some way to restoring Australia’s credibility and desirability with this key market segment.

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