Passenger Levy to increase by $5 to ~$60

[Andyzx]

The basics

The federal government has bowed to intense pressure from the agricultural and tourism sectors and modified its backpacker tax proposal – dropping the rate from 32.5 per cent to 19 per cent with the resulting cost to the budget to be picked up by international travellers. Under the original $540 million proposal in the May 2015 budget, non-residents with working visas such as working holidaymakers were going to be subjected to a 32.5 cent in the dollar tax rate between income levels of zero and $80,000 from January 1.
This compared with a zero tax rate between $0 and $18,200 for residents, 19¢ for income between $18,201 and $37,000 and 32.5¢ above $37,001.
But under proposals put to federal cabinet on Tuesday by Treasurer Scott Morrison, and agreed by Agriculture Minister Barnaby Joyce, the tax rate will be cut to 19¢. This will be funded by a $5 increase in the passenger levy. The passenger levy – or passenger movement charge – is currently $55. :evil: :evil:

The tourism sector will also get a $10 million hand out to market jobs to backpackers.

Good for the packers and the coffee shop, maybe not so good for the rest a 9.1% increase

 

[get me outta here]

When punnets of strawberries are 5 for $5 as they have been for the past few weeks at the local fruiterer, and a tiny bit more expensive at the big supermarkets, I worry about the growers, their future, and the future of the produce I eat. Not that it is such a comment on the tax compromise, but I'm pleased the backpackers are still coming hopefully, to do the jobs the rest of us don't seem much interested in.

 

[Pleb Status]

We can save ~$200M by not proceeding with the plebiscite...

 

[get me outta here]

At the risk of turning this into a political thread, which I think is not a good idea, I heartily agree.

We can save ~$200M by not proceeding with the plebiscite...

 

[N860CR]

We can save ~$200M by not proceeding with the plebiscite...

Or we could hold a plebiscite to see if the public wants to raise the levy

 

[PLANT]

Utopia.... Episode next season anyone?

 

[JohnK]

I was lucky enough to receive a before tax pay increase of ~1.4%. Not much left after tax.

And now even less. Thank you.

 

[Deleted member]

Government enhancement.

 

[whatmeworry]

Pretty annoying we travelling public have to pay more for government policy stuff up.

 

[AviationNZ]

Another misguided "enhancement" by the government. Great way to damage the great work the tourism industry is doing...both inbound and outbound.