Proposed Australian Working Holiday Visa Tax Foments Uncertainty

It had been reported earlier that the Australian administration had resisted widespread appeals to do away with the alleged ‘backpacker tax’, which is reportedly expected to come into force in the month of July this year. But, the activists against charging Working Holiday Makers higher taxes are now a confused lot even as they wonder if a federal evaluation of the planned amendments is really occurring.

Several territories in the far North of Oz reportedly believe that a Federal Administration appraisal into the Working Holiday Maker Visa tax is by now in progress. Still, the Federal Administration maintains that it is just reflecting on the subjects being highlighted.

For those not tuned in, under the Australian Working Holiday Visa improvements, Working Holiday Makers are set to drop their tax-free threshold even as they will have to give a 32.5% tax on entire earnings as of July 1. At present, the visitors on a Working Holiday Visa shell-out tax only in case they take home more than 18,200 Australian dollars per annum for which they are taxed 19 cents for each dollar above 18,200 dollars received; there are also extra tax bands for higher wages.

Several people from the fruit & vegetable growing business and numerous tourism operators have severely condemned the planned tax hikes. Apart from this, an online appeal has gathered roughly 29,200 backers.

Australian Working Holidaymaker Tax Increase Discourages Overseas Backpackers

Allegedly, backpackers are asserting they will either not arrive in the region, or they will spend comparatively less time in the country, which will negatively influence the availability of workers in the horticultural businesses throughout the nation.

Immigration Australia Refutes Working Holiday Maker Tax Appraisal

In the meanwhile, the federal Treasurer’s office reportedly claims that any assessment is still to occur. As per a spokesperson for Agricultural Minister, the regime knows about the industry fears related to the tax change to the Working Holiday Maker Visas (417 & 462) that becomes effective from 1 July 2016 onwards, and it is thinking about the matters being presented.

In a related development, a concerned person in support of the review reportedly stated that backpackers and Working Holiday Makers are an important part of tourism in the area. It would be better if the Federal Administration makes the visa application procedure not expensive, to successfully compete with other nations.

He added that the main emphasis ought to be on the price of getting in the nation. For example, for obtaining a Working Visa for Australia out of Britain, one has to spend nearly 500 dollars, and that’s very costly. The need of the hour is to make it more cost valuable, and far trouble-free to work in Oz. That’s a bigger hurdle, vis-à-vis travelers shelling-out tax when they land in the country, he concluded.

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