Delay to Backpacker Tax

Delay to Backpacker Tax

FEARS about the ‘backpacker tax’ that the Federal government was going to introduce have been allayed for now, with the decision delayed until further notice.It was feared by many that a move to remove tax-free thresholds from overseas travellers would discourage fruit pickers and harm tourism when it was due to come into effect on July 1. It would have meant that foreign seasonal workers would have been slugged 32.5 cents from the first dollar that they earnt. The tax was introduced by former treasurer Joe Hockey, and was forecast to raise $540 million in its first three years, and this delay will now cost the government $40 million, which has already been factored in.The proposal to introduce the tax will now be reviewed as part of a larger review of workforce shortages that are being faced by the agriculture and tourism industries, of which a report will be introduced in October allowing any changes to be introduced by January 1, 2017.