Working holiday tax rule will impact Australia tourism
The recently announced ‘backpacker tax’ for travelers on working holidays in Australia will likely drive many young people away across the Tasman to New Zealand, a tourism leader says.
"I think there’ll be a lot of people in the youth tourism market who are really scratching their head over that one," said Luke Martin chief of the Tasmania tourism industry.
"If you’re backpacking and wanting a working holiday and you’re looking at Australia or New Zealand, right now you look at Australia and you’re going to get taxed 35 cents in the dollar, and in New Zealand you’re going to get taxed zero.’
Currently travellers pay no tax on earnings up to A$18,000 but from next year, a 32.5% tax rate will be payable from the first dollar.
Backpackers and gap year students generally take low paying jobs on farms or in bars and hotels while travelling the country.
The Government says the change will bring in an extra A$540million.
"We don’t want to increase taxes on Australians but we do want everyone to pay their fair share long the way," said treasurer Joe Hockey.
Working holiday visas for Australia are available for travellers under 30 and valid for up to one year.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
In Italy, the Meloni government congratulates itself for its tourism achievements