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| Version 1 | Version 2 |
|---|---|
| Australia to impose lower 'backpacker tax' after outcry | Australia to impose lower 'backpacker tax' after outcry |
| (about 7 hours later) | |
| The Australian government says it will support imposing a 15% tax rate on working holiday visitors from overseas. | The Australian government says it will support imposing a 15% tax rate on working holiday visitors from overseas. |
| The new "backpacker tax" proposal is lower than the government's original plan for a 32.5% rate, which angered tourism and farming operators. | The new "backpacker tax" proposal is lower than the government's original plan for a 32.5% rate, which angered tourism and farming operators. |
| They feared taxing temporary workers 32.5 cents on every dollar would make it unattractive to come to Australia. | They feared taxing temporary workers 32.5 cents on every dollar would make it unattractive to come to Australia. |
| About 600,000 backpackers travel to Australia every year, many of them finding work picking fruit. | About 600,000 backpackers travel to Australia every year, many of them finding work picking fruit. |
| At present backpackers, like Australian workers, do not pay any tax until their yearly income exceeds A$18,200 (£11,000, $13,500). | At present backpackers, like Australian workers, do not pay any tax until their yearly income exceeds A$18,200 (£11,000, $13,500). |
| Treasurer Scott Morrison said the government had reached a compromise deal with independent crossbenchers. | Treasurer Scott Morrison said the government had reached a compromise deal with independent crossbenchers. |
| "Today the government will be working to put in place a bill which will propose 15% on the backpackers' arrangement," he said in Canberra on Monday. | "Today the government will be working to put in place a bill which will propose 15% on the backpackers' arrangement," he said in Canberra on Monday. |
| "We will honour the arrangement that we've come to with Senator (Nick) Xenophon and we appreciate his continued support on this, as well as Senator (Derryn) Hinch." | "We will honour the arrangement that we've come to with Senator (Nick) Xenophon and we appreciate his continued support on this, as well as Senator (Derryn) Hinch." |
| Protracted negotiation | Protracted negotiation |
| The announcement comes after more than a year of political manoeuvring between the government, opposition and minor parties. | The announcement comes after more than a year of political manoeuvring between the government, opposition and minor parties. |
| Last week, independent senator Jacqui Lambie's proposal for a 10.5% tax rate was blocked by the House of Representatives. | Last week, independent senator Jacqui Lambie's proposal for a 10.5% tax rate was blocked by the House of Representatives. |
| Government MP Andrew Broad broke ranks on the weekend to suggest a 15% rate, declaring the issue had to be settled before the new year. | Government MP Andrew Broad broke ranks on the weekend to suggest a 15% rate, declaring the issue had to be settled before the new year. |
| Mr Morrison said lowering the rate to 15% would cost the Australian budget A$120m over four years. | Mr Morrison said lowering the rate to 15% would cost the Australian budget A$120m over four years. |
| The opposition said it continued to support a 10.5% tax like New Zealand, arguing Australia risked turning away working holiday-makers. | The opposition said it continued to support a 10.5% tax like New Zealand, arguing Australia risked turning away working holiday-makers. |
| "When European backpackers look towards Australia and New Zealand ... they just look at the headline rate," said opposition agriculture spokesman Joel Fitzgibbon. | "When European backpackers look towards Australia and New Zealand ... they just look at the headline rate," said opposition agriculture spokesman Joel Fitzgibbon. |
| Australia granted 214,830 working holiday visas in 2014-15. British citizens, the programme's biggest constituency, were granted 44,730 visas. | Australia granted 214,830 working holiday visas in 2014-15. British citizens, the programme's biggest constituency, were granted 44,730 visas. |
| Australian working holiday visas cost a minimum of A$440 (£250, $355). |