Questions and Answers
The federal government has decided to impose a tax on ______ workers.
backpacker
Working holidaymakers will now be taxed at ______ percent.
19
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.
Signup and view all the answers
The original tax plan was expected to recoup ______ million dollars from the backpacker tax.
Signup and view all the answers
The Tourism and Transport Forum expressed dissatisfaction with the lower tax being offset by an increase in the Passenger ______ Charge.
Signup and view all the answers
The passenger departure tax will increase by ______ dollars.
Signup and view all the answers
Queensland Coalition backbencher George Christensen was a main ______ in pushing for the policy changes.
Signup and view all the answers
The PMC was first introduced in ______ and is currently set at $55.
Signup and view all the answers
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'.
Signup and view all the answers
The Government has announced a $10 million fund for the tourism sector to market ______ to backpackers.
Signup and view all the answers
Earlier this year, Nationals backbencher Andrew Broad first proposed a ______ per cent tax rate.
Signup and view all the answers
In the Northern Territory, backpackers represent ______ per cent of farm laborers.
Signup and view all the answers
Increasingly dismayed farmers, tourism operators and regional communities said a ______ per cent tax on backpacker labor would be a 'disaster' at harvest time.
Signup and view all the answers
Backpackers make up ______ per cent of the farm workforce each year.
Signup and view all the answers
The issue split the Government, with National and Liberal backbenchers calling for a ______.
Signup and view all the answers
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Learn about the recent changes to the backpacker tax in Australia, where the Federal Government has decided to lower the tax rate from 32.5% to 19% for working holidaymakers. This decision comes after significant pressure from both backbenchers and the industry. Explore the implications of this policy shift and its impact on the backpacker community.