Backpacker tax attack on Gold Coast

The Gold Coast will suffer under a new federal government tax on working holiday visa holders, state parliament heard today.

Tourism Minister Kate Jones today addressed parliament to voice her concerns about the impact the 32.5 percent tax would have on regional Queensland.

“Every year Queensland welcomes more than 160,000 overseas visitors on working visas,” Ms Jones said.

“They spend $700 million here and now the Federal Government wants to take a third of that in tax.

“The proposed federal government tax changes mean backpackers will not be eligible for the tax-free threshold but will pay tax from the very first dollar they earn.

“Mr Hockey and Mr Abbott just don’t understand how important working holiday makers are to regional economies like the Gold Coast.

“Not only do they contribute to our annual tourism spend they are also an important source of labour for tourism operators and other businesses.”

Ms Jones said the tourism tax would significantly impact local tourism operators.

“Tourism businesses often employ backpackers to cover peak seasons but with more than 30 cents in the dollar going to the tax office we will become a far less desirable destination for a working holiday,” she said.

“It’s ridiculous to suggest that backpackers save their income and take it home; they work to fund their holiday and spend it right here on the Gold Coast.

“This is nothing more than a tax on regional Queensland.”

Ms Jones said federal budget increases to visa fees and charges would also have a detrimental impact on tourism in regional Queensland.

Media contact: Minister Jones’ Office 3719 7530