The backpacker tax could affect regions which are reliant on a seasonal workforce.
The backpacker tax could affect regions which are reliant on a seasonal workforce. Mike Knott

Backpacker tax could change after review submitted: senator

A REVIEW into the Federal Government's controversial backpacker tax, which will be submitted to Cabinet soon, will raise concerns about a potential drop in international competitiveness, South Australian Senator Anne Ruston says.

The tax will mean foreigners on working holiday visas will be taxed 32.5 cents from the first dollar they earn, and a scrapping of the $18,200 tax-free threshold from July 1 this year.

On March 16, the Federal Government announced it would review the tax, because of widespread industry concerns about the impact on Australia's seasonal workforce.

A committee, headed by Tourism Minister Senator Richard Colbeck, has consulted with industry bodies who believe the proposed 32.5 per cent tax rate is too high.

The committee has heard the tax on working holiday-makers will hinder international competitiveness and cause a drop in regional Australia's seasonal workforce.

Read more at ABC



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