Local, Independant and Effective

Compromise reached on 15 per cent backpacker tax

December 01, 2016
Contact: Jane Still

Independent Member for Indi Cathy McGowan has welcomed the compromise of a 15 per cent backpacker tax.

Ms McGowan said the backpacker tax legislation needed to be sorted out after the Senate voted for the lower rate of 10.5 per cent on Wednesday.

“I thought the compromise position of 15 per cent was worthy of support. This situation needed to be sorted,” she said.

“I will be supporting the Government on its position. The alternative is 32 per cent.”

Ms McGowan said backpackers made an important contribution to the economy in Indi, working within the hospitality, tourism and agriculture sectors.

“The community has been asking for this issue to be resolved. What’s good for Indi is the lowest practical rate possible and the 10.5 per cent is no longer practical.”

Ms McGowan said the lengthy process involved in passing the backpacker tax legislation was a perfect example of what happens when policy is developed without fully investigating the impact on rural and regional Australians.

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