• Victoria Tourism Industry Council (VTIC)
  • fb_icon
  • li_icon
  • tw_icon
  • yt_icon

Increased “backpacker” visa tax a setback for tourism industry

24 /10/ 2012 Comments are Closed

The 25 per cent tax increase from $280 to $350 on the Working Holiday Visa (WHV) announced by Federal Treasurer Wayne Swan this week is a major setback for the tourism industry. Expenditure by WHV visitors while they’re in Australia is a great source of revenue for Australia’s economy and, beyond this, they also provide much-needed labour and skills in tourism and other industries.

This additional tax is yet another barrier in a situation where we’re trying to encourage, not dissuade. It compounds the already difficult climate in which the tourism industry is operating. The high Australian dollar, our distance from the rest of the world, the rise of competitors such as Canada and United States, to name a few factors, are already challenging our industry.

These charges will have a particular impact on younger tourist segments, such as backpackers, and will not only reduce tourism expenditure by making Australia a less competitive destination, but may exacerbate labour and skills gaps currently filled by WHV visitors.

The move is particularly damaging to our regional centres which depend on visitors such as these to travel and work in their regions, and is contrary to the Government’s current strategy to attract increased labour, particularly to rural and regional areas.

We’d like to see the WHV scheme made more attractive for visitors through measures like increasing the maximum age from 30 to 35, not making it less appealing through increased charges.

Just because tourists don’t vote does not mean they should be disproportionately targeted by taxation.

VTIC

About the Author

VTIC

The peak body for Victoria's tourism and events industry, VTIC represents key industry associations and operators, with over 1400 members.

Events

may

31may9:00 am5:00 pmDestination Melbourne presents: Melbourne LIVE9:00 am - 5:00 pm Arts Centre Melbourne - The Pavilion

june

06jun6:00 pm8:00 pmVTIC 2018 Mixer Series - June Tourism Networking EventConnect and reconnect at our monthly mixers6:00 pm - 8:00 pm SEA LIFE Melbourne Aquarium

08jun12:00 pm2:30 pmVictorian Chamber presents: The Hon Julie Bishop MP12:00 pm - 2:30 pm Melbourne CBD

13jun5:30 pm8:00 pmVictorian Chamber presents: Fast Forward Speed Networking5:30 pm - 8:00 pm RACV City Club

14jun9:00 am10:30 amVictorian Chamber presents: Workplace update - are your casuals really casual?9:00 am - 10:30 am Best Western Hovell Tree Inn

july

04jul6:00 pm8:00 pmVTIC 2018 Mixer Series - July Tourism Networking EventConnect and reconnect at our monthly mixers6:00 pm - 8:00 pm SEA LIFE Melbourne Aquarium

20jul9:00 am11:00 amVictorian Chamber presents: ignite+VU9:00 am - 11:00 am MCG

30jul(jul 30)8:00 am31(jul 31)3:30 pmVictorian Tourism Conference 201830-31 July, Cape Schanck8:00 am - 3:30 pm (31) RACV Cape Schanck Resort

august

15aug6:00 pm8:00 pmYoung Tourism Network presents: Grow and Glow6:00 pm - 8:00 pm Victoria University

october

16oct6:30 pm8:00 pmYoung Tourism Network presents: Emotional Intelligence with Mel Neil6:30 pm - 8:00 pm Victoria University

X