Backpacker tax faces opposition from farming, tourism

FARMING and tourism industry heavyweights have joined forces in a bid to kill off a Turnbull government plan to impose taxes on backpackers working in regional areas.

A National Farmers Federation petition was launched yesterday to convince the government to drop a plan to tax backpackers at 32.5% on the money they earned.

The move would strip working holidaymakers of their tax-free status from July.

The NFF's Charlie Armstrong said about 40,000 backpackers worked on Australian farms, generating $3.5 billion each year.

The NFF instead proposed backpackers be taxed at a concessional 19% rate after they earned their first $15,000 in Australia.

The influential Tourism and Transport Forum backed the NFF's proposal.


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