The proposed 32.5 per cent tax rate that was to apply to working holiday visa holders from 1 July 2016 will be cut to 19 per cent following a review of the tax.
Federal Member for Pearce, Christian Porter, said that change recognised the importance of keeping regional economies strong.
“Agriculture and tourism makes a fundamental contribution to the local economy in Pearce,” Mr Porter said.
“Farmers, growers, and tourism operators expressed strong opinions about the supply and taxation of working holiday visa holders and those concerns have been heard.
“The revision of the backpacker tax to 19 per cent is a win for the farmers and growers of Pearce who rely on strong seasonal labour support.
“This is one more way that we are working to ensure Pearce remains a vibrant hub of industry and employment into the future.”
Mr Porter said the decision to reduce the proposed tax rate from 32.5 per cent to 19 per cent would maintain Australia’s status as one of the most competitive destinations for working holiday makers, while ensuring they pay a fair level of tax.
Information about the changes will be progressively uploaded to www.ato.gov.au