Backpackers won't get their salary taxed at a rate of 32.5% as it was first announced, but rather 19%, from the first dollar they earn, starting in January. This is for salaries up to $37 000. After that, the normal Australian tax rate will apply.
Other sources of revenue for the government
The government will also start taxing backpackers' superannuation at a rate of 95% when they leave the country.
The departure tax will pass from $55 to $60 for all visitors to Australia, starting July 2017. This is included in the price of the plane ticket.
Tourism industry and farmers unhappy
Backpackers are not the only ones to criticize the new tax. Most Australian farmers need to employ backpackers and they're worried the new measures will make backpackers choose countries with more lenient tax rates. They might go to New Zealand instead, where the tax rate is only 10.5% for backpackers.
Backpackers represent 25% of farm workers in Australia. In the Northern Territory, they are 85% of the workforce on farms.
The tourism industry thinks that backing down on the first proposal is a step in the right direction, but is not happy with the increased departure tax, saying the government sees tourism as a "cash cow".
Less backpackers are coming to Australia
In the last few years, the number of backpackers coming to Australia has decreased. In 2012-2013, 258 248 people requested a working-holiday visa, compared to only 214 583 people last year.
The government however promised to invest 10 millions to attract more backpackers to the country.
