Australia modifies backpacker tax proposal; to increase passenger levy from 01-Jul-2017

Australia's Government modified (27-Sep-2016) the backpacker tax proposal, initially announced in the 2015 budget, by reducing the rate from 32.5% to 19% up to AUD37,000. It is also providing AUD10 million (USD7.7 million) to Tourism Australia to "support a global youth- targeted advertising campaign" and will allow working holiday makers to stay with one employer for up to 12 months, as long as the second six months is worked in a different location. Treasurer of the Commonwealth of Australia Scott Morrison said the moves would once again make Australia internationally competitive in the backpacker market. Meanwhile, the government plans to increase the passenger levy by AUD5 (USD3.8) to AUD60 (USD46) from 01-Jul-2017 to make up for the lost revenue with an increase in the Passenger Movement Charge. [more - original PR]