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27 September 2016

Treasurer Scott Morrison will reduce the $500 million “backpacker tax” his predecessor Joe Hockey announced in the 2015 Budget.

The Hockey plan had backpackers paying 32.5% on every dollar they earned, without the usual $18,200 tax-free threshold. Under Morrison’s new regime, approved by Cabinet on 27 September, 2016, the rate will be reduced to 19% from 1 January, 2017, on earnings up to $37,000 per annum.

The Department of Immigration and Border Protection’s latest Working Holiday Maker Visa Program Report shows the number of visas granted dropped by 5.4% in the 12 months to 30 June, 2016, which meant 12,229 less visas were granted. Since 2012-13, the fall is 17% (43,665) to 214,583 in 2015-16.

However, the government has found another way to slug tourism workers. To pay for the changes, which hit the Budget by $365 million, the tax on superannuation payments to working holiday makers will increase to 95% when they leave Australia.

The government will also increase the Passenger Movement Charge by $5 from 1 July, 2017. There will also be changes to 417 and 462 visas and the application charge for working holiday maker visas will be reduced by $50 to $390.

Come and explore the migration agent Sydney website for more details on the latest Australian visa news.

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Health Insurance offer

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PK Harrison Australian Visa Services have recently formed a partnership with Australian Unity, a leading Australian health insurance provider.

Australian Unity is one of the most reasonab… Read More

Online lodgement for Chinese visitors

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The Department has announced that from 12 December 2016, visa applicants in China are able to lodge visitor visa applications in Chinese through a new online service provided by Australian Visa App… Read More

Frequent traveller visitor visa for Chinese applicants

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On 12 December 2016, the Department commenced its trial of the new 10-year ‘Frequent Traveller’ Read More

Companies penalised for underpayment of foreign workers

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Several companies have recently been penalised for underpaying overseas workers. Fair Work Australia is actively monitoring employers to assess their compliance with workplace legislation and spons… Read More

Backpacker tax finalised

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From 1 January 2017 a new 15% tax rate applies for working holiday makers who are … Read More

New 407 and 408 sponsorship required for existing temporary activity sponsors

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From 19 November 2016, all 407 visa applications needed to be lodged online.

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