After much political manoeuvring and compromise, Australia’s controversial backpacker tax has been passed by the Senate at a 15% tax rate.
It only succeeded after the government struck a last-minute deal with the Greens which means from January working holidaymakers will pay 15% tax on all earnings while in Australia.
It has been a tortuous journey to get to the 15% tax rate.
The government first proposed 32.5%, which was then argued down to 19% before agreement was finally reached yesterday at 15%.
There were also opposition counter proposals for first 10.5% and then 13%.
The National Farmers Federation, whose members rely on foreign temporary labour, welcomed the vote which ends months of uncertainty.
Tourism industry leaders were also relived the saga has come to an end.
"It will be a relief to tourism businesses who service the backpacker sector that this matter has finally been resolved, but it is frustrating that it has taken so long," said Victoria Tourism Industry Council acting chief executive Kristina Burke.
"The new package of a 15% per cent tax rate on income is a significant improvement on the original proposal of 32.5%. It will help ensure Australia remains a competitive destination for working holidaymakers," she said.
"It is hoped that today’s announcement will go some way to restoring Australia’s credibility and desirability with this key market segment."
