Backpacker Tax

aido79

I'm just curious as to whether the new rules(if they do come) regarding taxing backpackers as non-residents will affect anyone's decision to either come to Australia on a whv or stay in Australia if they are already in the country on a whv.

http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201516/Holiday

It means that for someone on a whv they will pay 32.5% of everthing they earn in tax from the first dollar they earn. If they are lucky enough to get a job earning $80,000 a year they will pay an extra $8453 in tax than someone doing the same job on a different visa.

A person on a whv on minimum wage($17.29) working a 38 hour week would pay around the same tax as a resident earning $60k a year.

I don't actually think the changes will be brought in because I think farmers, fruit growers and the tourism industry are already up in arms about it and the government has postponed it for 6 months.

duffman13

aido79 wrote: »

I'm just curious as to whether the new rules(if they do come) regarding taxing backpackers as non-residents will affect anyone's decision to either come to Australia on a whv or stay in Australia if they are already in the country on a whv.

http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201516/Holiday

It means that for someone on a whv they will pay 32.5% of everthing they earn in tax from the first dollar they earn. If they are lucky enough to get a job earning $80,000 a year they will pay an extra $8453 in tax than someone doing the same job on a different visa.

A person on a whv on minimum wage($17.29) working a 38 hour week would pay around the same tax as a resident earning $60k a year.

I don't actually think the changes will be brought in because I think farmers, fruit growers and the tourism industry are already up in arms about it and the government has postponed it for 6 months.

Currently in oz on a WHV (2nd year) and on the basis of the tax coming in was planning on going travelling in July and going home afterwards. It's going to have a huge effect on numbers coming to oz and I certainly would not have done my regional work for 12 dollars an hour (after tax) so this will decimate farmers.

They've already delayed till December and with the administration involved I'd say it won't be in till next July but because of the uncertainty I'd made plans and am now leaving 4 months before the end of my visa. Terrible communication and id say a lot of potential backpackers have jumped to NZ/Canada due to the uncertainty.

aido79

duffman13 wrote: »

Currently in oz on a WHV (2nd year) and on the basis of the tax coming in was planning on going travelling in July and going home afterwards. It's going to have a huge effect on numbers coming to oz and I certainly would not have done my regional work for 12 dollars an hour (after tax) so this will decimate farmers.

They've already delayed till December and with the administration involved I'd say it won't be in till next July but because of the uncertainty I'd made plans and am now leaving 4 months before the end of my visa. Terrible communication and id say a lot of potential backpackers have jumped to NZ/Canada due to the uncertainty.

Yeah I think it will definitely make some people consider their options on whether to choose NZ or Canada over Australia. Australia is expensive enough for people on a low wage without being taxed even more.

minzabud

I think it will affect a lot of people if it goes ahead but also a lot more people will work Abn if possible, i got around 12k back over two years so made a huge boost to my travels.

duffman13

minzabud wrote: »

I think it will affect a lot of people if it goes ahead but also a lot more people will work Abn if possible, i got around 12k back over two years so made a huge boost to my travels.

Don't think it's as easy to get an Abn anymore, a lot of people I know previously worked as a labourer on an abn however that's no longer available for labourers IIRC.

I think even a flat 18% or do something with the super is the only option to keep people coming. I have two friends who were up until April planning on coming to Oz, both changed there mind after there was no announcment and got a 2 year NZ visa for cheaper. It's almost funny the level of idiocy in this proposal.