The 15% rate is much lower than the government’s original proposal of a 32.5% tax rate, which was rejected by tourism officials and farmers alike who believed the extortionate tax would make Australia a much less attractive proposition for those tourists seeking to supplement their travels by working – many of whom earn money picking fruit around the country.
However, opposition agricultural spokesman Joel Fitzgibbon said that the opposition would continue to call for a 10.5% tax rate – “When European backpackers look towards Australia and New Zealand … they just look at the headline rate” he said, although just last week a 10.5% rate was rejected by the House of Representatives.
The wrangling could be set to continue…
