Federal Government backs down on plan to introduce backpacker tax hike
28th September 2016
Good news for working holiday visa holders and applicants. In recognising the importance of backpackers to the tourism industry and agricultural sector, the Federal Government will introduce the following changes to the working holiday visa Subclasses 417 and 462 on 1 January 2017:
1. Increase the eligible age from 30 to 35;
2. A visa holder can work for the same employer for up to 12 months (not six months), but no more than six months in the one location;
3. The Federal Government has responded to industry pressure and dumped the plan to impose a 32.5 percent tax on backpacker workers. From 1 January 2017, working holidaymakers will be taxed at 19 percent on earnings up to $37,000, with marginal tax rates applying after that; and
4. The Department of Immigration and Border Protection will reduce the visa application fee for working holiday visas by $50 to $390.