Backpacker taxes not going ahead

The Australian Tax Office has now confirmed that the controversial backpacker tax increases will not begin on July 1.

As late as Thursday, the ATO had been directing concerned farmers to its website, which stated that a 32.5 per cent tax rate for backpackers was due to take effect next month.

That contradicted an earlier announcement by the Coalition government, that any backpacker tax changes would be delayed until January pending a review.

The ATO replied by directing farmers to its website, which stated that from July 1 working holiday visa holders would be treated as non-residents for tax purposes, will not be able to access the tax-free threshold and will be taxed at 32.5 per cent from their first dollar earn.

At least in the interim farmers and backpackers can rest assured they will not be charged the hefty tax on any income earned.

Backpackers working on a  pineapple farm (Source: ABC)
Backpackers working on a pineapple farm (Source: ABC)

 

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