Political Compromise That Still Hurts Tourism

In a classic political compromise that gives with one hand and takes with the other, leaving no-one happy, the Australian Government has reduced its proposed working  backpacker tax rate from 32.5% to 19% on earnings up to $37,500 but will pay for the revenue shortfall by increasing the departure tax by $5 to $60.

Industry lobby groups were pushing for the withdrawal of the backpacker tax altogether and have called the increase in the Passenger Movement Charge counter-productive.

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One thought on “Political Compromise That Still Hurts Tourism”

  1. You will note the agricultural industry was very happy with the outcome. They got tourism to pay for their concession. It highlights that while Governments love to talk up tourism, it is still the old industries – mining, manufacturing and agriculture – that they consider ‘real’ industries worthy of putting their money where their mouth is. We have a long way to go…

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