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

Proposed backpacker tax must be abandoned in next week’s budget

29 /04/ 2016 Comments are Closed

The Victoria Tourism Industry Council (VTIC) today called on the Federal Government to use next week’s budget to abandon its controversial proposed backpacker tax.

“Victorian tourism businesses remain strongly opposed to this proposed tax, as it will deter backpackers from visiting and working in Australia and stifle tourism growth,” said VTIC Chief Executive Dianne Smith.

Under the Federal Government plan revealed in last year’s budget, from 1 July 2016 the tax-free threshold (currently $18,200) for working holiday makers will be removed and their earnings will be subjected to a 32.5 per cent tax rate from the first dollar earned.

Ms Smith said the government had announced a review of the proposed tax earlier this year but needed to provide certainty to the tourism industry with a decision next week.

“International backpackers contribute over $600 million to the state’s economy and represent more than one in 10 international overnight visitors to Victoria,” said Ms Smith.

“Hitting travellers with this tax will damage Australia’s reputation as a desirable place to visit and work, and in the highly competitive international tourism market we cannot afford to put travellers off side.”

Ms Smith said backpackers were a valuable source of labour for Victorian tourism operators and the tax would make it harder for businesses to grow.

“The hospitality sector in particular relies on the involvement of a transient workforce to meet seasonal market demands,” said Ms Smith.

“Victorian tourism operators are facing a shortage of more than 30,000 workers over the next five years, so the government must do what it can to grow our workforce.”

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

september

26sep11:30 am4:00 pmVictorian Chamber and Pitcher Partners presents: Grand Final Lunch11:30 am - 4:00 pm Olympic Room, MCG

october

03oct5:30 pm7:30 pmVTIC 2018 Mixer Series – October Tourism Networking EventConnect and reconnect at our monthly mixers5:30 pm - 7:30 pm Wallis & Ed

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

17oct10:30 am11:30 amVTIC Webinar Series - What can we find out by tracking tourists?Improving the world, one webinar at a time!10:30 am - 11:30 am Online

22oct12:00 pm2:00 pmVTIC Premium Member Lunch with Lyell Strambi12:00 pm - 2:00 pm Angliss Restaurant

november

14nov6:00 pm8:00 pmVTIC 2018 Mixer Series - November at Melbourne ZooConnect and reconnect at our monthly mixers6:00 pm - 8:00 pm Melbourne Zoo

21nov10:30 am11:30 amVTIC Webinar Series - save the dateImproving the world, one webinar at a time!10:30 am - 11:30 am Online

22nov6:00 pm11:00 pm2018 RACV Victorian Tourism Awards – Gala CeremonyTickets on sale now6:00 pm - 11:00 pm Palladium at Crown Dress Code: Black Tie

28nov4:30 pm6:00 pm2018 VTIC Annual General Meeting4:30 pm - 6:00 pm

X