Tourists targeted in $600 million Federal Budget tax grab

TOURISM might be one of the biggest sources of revenue for the Federal Government, but it’s set to be squeezed for another $600 million.

TOURISM might be one of the biggest sources of revenue for the Federal Government, but it’s set to be squeezed for another $600 million.

The Tourism and Transport Forum has declared the Federal Budget a “tax hit on tourism” due to the slug on working holiday-makers, and increases in visa application charges.

From July 2016, backpackers who hope to work their way around the country will pay 32.5 cents in tax on every dollar they earn, instead of being able to pocket up to $18,200 tax-free.

Working holiday visas will also cost an extra $20, while the rapidly Chinese market will be slugged an extra $5 a person for a visa application.

The measures are expected to generate millions of dollars in revenue for the Federal Government and appease those concerned about foreign workers taking Aussie jobs.

But TTF CEO Margy Osmond said she was concerned there was no new money for tourism marketing.

“Australia is fighting with one hand tied behind its back,” said Ms Osmond.

“Ripping more than half a billion dollars from the visitor economy with a new “backpacker tax” is simply ridiculous.

“Taxing working holiday makers from the first dollar they earn instead of giving them equal treatment with other resident taxpayers is a backward step and will damage Australia’s international reputation.”

She said working holiday-makers were among the biggest spending tourists, shelling out more than $13,000 during their stay.

“Coupled with the tenth consecutive increase in their application fees, this new tax on working holiday makers will make them think twice about coming here,” Ms Osmond said.

“If this trend continues Australia will be overtaken by countries hungry to support their tourism industries.”

Tourism Minister Andrew Robb said the budget would provide $36.7 million over the forward estimates in additional funding for Tourism Australia to support marketing activities abroad.

“Our tourism industry achieved record results in 2014 with international expenditure up nine per cent to an all time high of $30.7 billion and our tourism investment pipeline growing by nine per cent,” said Mr Robb.

Originally published as Tourists targeted in $600 million Federal Budget tax grab