Northern Queensland LNP senator Ian Macdonald has welcome the proposed cut to the backpacker tax but said the issue cost the coalition votes at the last election.
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The proposed 32.5 per cent tax rate that was to apply to working holiday visa holders from July 1, 2017 will be cut to 19 per cent following widespread industry protest.
Senator Macdonald said he was pleased cabinet had cut the tax.
“But I am still very annoyed that we had to go through an election with the last proposal which cost us support on polling day,” Senator Macdonald said.
“I am angry that relevant Ministers did not understand the impact of the backpackers’ tax on rural industries and the tourism/hospitality industry, particularly in Queensland.”
The proposed tax rate of 19 per cent will apply to all Working Holiday (417) and Work and Holiday (462) visa holders.
Senator Macdonald said the decision would help to keep Australia “top-of-mind” as a destination for working holiday makers.
“I am pleased with the government’s proposal to actively promote Australia as a destination for working backpackers, and I think the reduced application fee, and the extension of time for working holiday makers working if different regions, will also be of help,” he said.
“But I think the superannuation accrued by Working Holiday and Work and Holiday visa holders should be paid to them as wages rather than as super, and it should be included in the tax mix. Backpackers will spend that money in local communities and it will circulate in local economies.
“I am also disappointed about the need to increase the passenger movement charge to pay for these new arrangements.”
The Government's original tax plan was expected to recoup $500 million from the backpacker tax and to offset the loss, it will increase the international passenger departure tax by $5.
“International tourism is a very competitive business and any dis-incentive for foreign visitors to come to Australia will not assist Australian industry, or government revenue,” Senator Macdonald said.
Queensland Tourism Minister Kate Jones was also unhappy that the backpacker tax wasn’t completely axed.
“Tinkering at the edges will not fix the problem, the tax needs to be scrapped altogether,” Ms Jones said.
“Regional areas like North Queensland rely on tourism jobs.”
“Taxing backpackers thousands of dollars is just giving them thousands of reasons not to come to Australia.
“Since the tax was announced we have seen working visa holiday visitor nights down by close to 9 percent in Queensland.”
State Shadow Agriculture Minister Dale Last called the changes “common sense”.
In the year to June 2016, Queensland recorded 12.3 million backpacker visitor nights down from 13.5 million in the 12 months to June 2015.
The total number of backpackers visiting Queensland dropped from 338,000 to 331,000 over the same period.
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
