Greens Treasury spokesperson, Senator Peter Whish-Wilson says that the combined new tax rate of 15% from the first dollar earned plus a new 95% tax on all superannuation paid by backpackers will leave Australia at a competitive disadvantage compared to other destinations.
Senator Whish-Wilson said, “The Senate really should not be supporting this proposal on a 15% backpacker rate. With the 95% clawback on superannuation of backpackers then the effective tax rate is closer to 24% which is no longer competitive with our neighbours.
“This is roughly double the effective rate of tax paid by working holiday makers in New Zealand.
“We are seeking advice on whether we can move an amendment to this new Bill to cancel the superannuation clawbacks.
“The Government has completely botched this up. They have created an administrative nightmare for farmers and for backpackers. The ramifications will be felt immediately.
“And given that the ATO has no idea how many backpackers are currently residents for tax purposes, the Government’s revenue forecasts are built on thin air. There is a chance that this measure will both scare off working holiday makers and at the same time not raise any substantive revenue,” he concluded.
Greens Treasury spokesperson, Senator Peter Whish-Wilson
