Earlier this week the Federal Government announced the result of it's review on the controversial backpacker tax – the tax will still go ahead but at a reduced rate of 19%, compared to the originally proposed 32.5%.
The 19% rate keeps Australia roughly in line with other countries offering working holiday visas, so it is hoped that this measure will prevent backpackers from flowing away from Australia and into other destinations as their preferred choice!
However, rather than scrapping backpacker superannuation, and redirecting this into tax, the government will not claim 95 cents per dollar out of backpacker superannuation – meaning the payments and all associated administration will still need to be processed.
The cost of the visa will be reduced from $440 to $390, decreasing the upfront commitment required by working holiday makers.
Another benefit to come out of the review to the visa legislation is a proposed increase in the working holiday age limit from 30 to 35 years, opening up the window of those who can come to Australia to work and travel. For the hospitality industry, we could hope this would lead to an increase in qualified and experienced staff, particularly cooks and chefs.