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Australia Raises Tax For Working Tourists This 2017: Here's What You Need To Know

Travelers Today       By    Glory Moralidad

Updated: Jan 02, 2017 02:59 AM EST

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Are you planning to work in Australia while at the same time you enjoy your stay? From January 1, the country will tax 15 percent for every dollar you earned up to $37,000 and with foreign resident tax rates applying from $37,001.

Also, one must register with the Australia government until Jan. 31 for them to withhold your working holiday maker tax rate. Failure to record yourself will have the government withhold your earnings at the foreign resident tax rate of 32.5%.

Australia's new tax rules receive backlash not only from the tourism industry, but its outlandish law will affect the operations of agriculture sector as well. Growers rely on backpackers to pick or care for their farm on a span of six months.

In a report by Deutsche Welle, the Australian National Farmers' Federation lamented the case of the new tax system. Charlie Armstrong, head of the Federation, said, "The agriculture industry relies on backpackers to fill severe labor shortages, which are often seasonal and temporary - for example when crops are being harvested, or milk production is at its peak."

He continued to say, "Each year, backpackers contribute around A$3.5 billion to the Australian economy, and around 40,000 find employment on Australian farms." He commented that a waning number of working tourists would only worsen their arrivals to Australia each year.

Meanwhile, if you are finished with your employer and will be leaving Australia back to your home country, a new tax arrangement for working tourists' superannuation will take effect on July 1. Tourists will be taxed 65 percent if they claim their superannuation beyond the said date, but will only be taxed at 38 percent if they claim their fee before July.

According to the Australian government, a visa for the working tourists allows cultural exchange and closer ties between Australia and eligible countries. However, the new changes in tax rates seem to have discouraged backpackers to continue working in the country during their holiday stay.

See Now: The U.S. had the highest number of Most Wanted properties, dominating the Hotels.com Loved By Guests Awards 2018

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australia, Australia news, Australian government, working holiday makers, backpacker tax
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