iStock/Thinkstock(SYDNEY) — The Australian government has settled on a “backpacker tax” for working visitors from overseas.
The government will support a 15 percent tax rate on the hundreds of thousands of backpackers that travel to Australia every year, according to BBC. It’s lower than the 2015-proposed rate of 32.5 percent, which was opposed by tourism industries and agriculture companies that worried it would turn off tourists who often assist on farms for work.
Backpackers in Australia currently do not pay a tax unless their yearly income exceeds $18,200.
The 15 percent rate was a compromise between the 19 percent rate suggested by the government and a 10.5 percent rate by independent senator Jacqui Labie who had the support of other parties, BBC reports.
Treasurer Scott Morrison said the tax rate would cost the Australian budget $120 million over four years.
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