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Immigration News - 'Backpacker Tax' Delayed!

22/5/2016

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StoryA collective sigh of relief was breathed by thousands of Working Holiday visa holders when it was announced this week that the implementation of the controversial 'backpacker tax' will be delayed for 6 months pending a review by the Australian Government. 

As it currently stands, Working Holiday visa holders are not required to pay tax for their dollars earnt while working in the country. However, it was previously announced that from 1 July 2016 all Working Holiday visa holders would be considered residents for tax purposes and be forced to pay 32.5c for every dollar earnt in Australia. This eventually lead to strong lobbying by the tourism and farming sectors, who rely heavily on seasonal work of working holiday makers to address labor and skills shortages in remote locations across Australia.

It was argued that the imposition of the tax scheme would cause potential applicants to choose other destinations, such as New Zealand and Canada over Australia. Interestingly, since the tax scheme was announced, Working Holiday applications dropped by 5%. 

Until a decision is reached on taxation of Working Holiday makers, they will continue to live in limbo unsure if their wallets will be considerably lighter come the new year. In the meantime,  Working Holiday visa holders are encouraged to watch our video on Common Pathways to Permanent Residency available here to find out more information on alternative visa options.

If you are on a Working Holiday visa require the assistance of a Migration Agent in Brisbane today, then get in contact on 1300 MIGR8TE (644 788) or email your questions to enquiry@salvomigration.com.au and thank you for visiting Salvo Migration.

Story Originally Published here.
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