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Australia: backpacker tax increase as from July 2016

Hello everyone,

If you are planning to fly to Australia as a backpacker, here is some useful information regarding taxes.

Last week, Australian Minister of Finance, Scott Morrison, announced a backpackers tax increase for those on the Working Holiday Visa (WHV) program. This measure applies not only to young backpackers but also to local farmers who rely heavily on this temporary labor.

As from July 2016, WHV holders will have to pay taxes amounting to 32.5% as from the first dollar earned. Earlier, backpackers were exempt from tax on a maximum of 18,200 dollars. In the case of salaries exceeding 18,200 dollars, a 19% tax applied.

The Minister of Finance should provide more information about this measure in coming weeks.

Find more information here: www.aph.gov.au

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