Podcast
Questions and Answers
The federal government has decided to impose a tax on ______ workers.
The federal government has decided to impose a tax on ______ workers.
backpacker
Working holidaymakers will now be taxed at ______ percent.
Working holidaymakers will now be taxed at ______ percent.
19
Treasurer Scott Morrison announced the tax deal after it was signed off by ______.
Treasurer Scott Morrison announced the tax deal after it was signed off by ______.
Cabinet
Opposition leader Bill Shorten stated that George Christensen's influence was broader than he was ______ on.
Opposition leader Bill Shorten stated that George Christensen's influence was broader than he was ______ on.
The original tax plan was expected to recoup ______ million dollars from the backpacker tax.
The original tax plan was expected to recoup ______ million dollars from the backpacker tax.
The Tourism and Transport Forum expressed dissatisfaction with the lower tax being offset by an increase in the Passenger ______ Charge.
The Tourism and Transport Forum expressed dissatisfaction with the lower tax being offset by an increase in the Passenger ______ Charge.
The passenger departure tax will increase by ______ dollars.
The passenger departure tax will increase by ______ dollars.
Queensland Coalition backbencher George Christensen was a main ______ in pushing for the policy changes.
Queensland Coalition backbencher George Christensen was a main ______ in pushing for the policy changes.
The PMC was first introduced in ______ and is currently set at $55.
The PMC was first introduced in ______ and is currently set at $55.
Tourism and Transport Forum chief executive Margy Osmond said the lower backpacker tax rate was 'some ______' but the PMC increase showed the tourism industry was being treated as a 'cash cow'.
Tourism and Transport Forum chief executive Margy Osmond said the lower backpacker tax rate was 'some ______' but the PMC increase showed the tourism industry was being treated as a 'cash cow'.
The Government has announced a $10 million fund for the tourism sector to market ______ to backpackers.
The Government has announced a $10 million fund for the tourism sector to market ______ to backpackers.
Earlier this year, Nationals backbencher Andrew Broad first proposed a ______ per cent tax rate.
Earlier this year, Nationals backbencher Andrew Broad first proposed a ______ per cent tax rate.
In the Northern Territory, backpackers represent ______ per cent of farm laborers.
In the Northern Territory, backpackers represent ______ per cent of farm laborers.
Increasingly dismayed farmers, tourism operators and regional communities said a ______ per cent tax on backpacker labor would be a 'disaster' at harvest time.
Increasingly dismayed farmers, tourism operators and regional communities said a ______ per cent tax on backpacker labor would be a 'disaster' at harvest time.
Backpackers make up ______ per cent of the farm workforce each year.
Backpackers make up ______ per cent of the farm workforce each year.
The issue split the Government, with National and Liberal backbenchers calling for a ______.
The issue split the Government, with National and Liberal backbenchers calling for a ______.
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Study Notes
Government Tax Plan Changes
- Federal Government abandons 32.5% tax on backpacker workers, lowering it to 19% from the first dollar earned.
- Treasurer Scott Morrison announced the new agreement after backbench and industry pressure.
- Compromise reflects satisfaction from the backbench committee advocating for tax changes.
Political Dynamics
- George Christensen, a Queensland Coalition backbencher, advocates for changes but emphasizes collective effort.
- Opposition leader Bill Shorten criticizes the government's backflip, attributing influence to right-wing factions within the party.
Impact on Tourism Industry
- Tourism and Transport Forum expresses anger over the reduced backpacker tax being offset by a $5 increase in the Passenger Movement Charge (PMC).
- PMC, introduced in 1995, is currently set at $55 and typically included in transport costs for departing passengers.
- Margy Osmond, chief executive of the Forum, describes the government’s actions as treating the tourism sector as a "cash cow."
Government's Justification and Future Steps
- Morrison claims the tax package maintains budget integrity while addressing sector concerns.
- New tax legislation will be required to implement changes; previously proposed 19% tax rate by Nationals backbencher Andrew Broad.
- Labor party remains non-committal on its stance regarding potential legislation, while the Greens oppose any increase in backpacker taxes.
Economic Context
- Original backpacker tax plan aimed to generate $500 million in revenue.
- Farmers and tourism operators express concern, noting the critical role of backpackers in the labor force, comprising 25% of farm workers annually and 85% in the Northern Territory.
- Widespread concern from farmers and regional communities about the potential negative impact of a high tax on labor availability during harvest time.
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