CANBERRA: A proposed tax on working holidaymakers in Australia has been lowered, bringing (relatively) good news for Irish backpackers heading down under. New tax rates to be introduced from January 1st 2017 will see overseas visitors with Working Holiday (subclass 417) visas paying tax of 19.5 per cent on every dollar earned, down from the Australian government’s original plan to impose a 32.5 per cent tax.
The rate was lowered by Australian Treasurer Scott Morrison, following opposition from the agriculture and hospitality sectors who raised concerns about labour shortages. Foreigners on working holidays currently pay no tax on their first 18,200 Australian dollars in income, and a 19 per cent rate on earnings up to 37,000 dollars.
