The Turnbull Government has reached agreement to secure the support of the Australian Greens for the Government’s better Working Holiday Maker tax arrangements, setting the tax rate for 417 and 462 visa holders to 15 per cent, consistent with the rate applicable to visa holders under the Seasonal Workers Program.
The new legislative arrangements agreed between the Government and the Australian Greens will include an amendment to the superannuation arrangements for Working Holiday Makers.
From 1 July 2017 the Departing Australia Superannuation Payment (DASP) rate will be set at 65 per cent for all 417 and 462 Visa holders.
These arrangements will contribute $560 million net to the Budget, almost 74 per cent of the revenue the original Budget measure would have raised over the current forward estimates.
As part of the agreement, the Government has also agreed to provide a one-off additional funding commitment of $100 million to the Landcare program. This will be included in the 2016-17 Mid-Year Economic and Fiscal Outlook.
These new arrangements will ensure that the Australian agriculture, horticulture, tourism and hospitality sectors, as well as other industries in regional areas, can have a competitive tax rate for Working Holiday Makers that does not compromise other important visa classes such as those under the Seasonal Workers Program.
The Government commends the Australian Greens, and their Leader Senator Di Natale, for their constructive engagement with the Government on this issue, as well as Pauline Hanson’s One Nation, the Nick Xenophon Team and Senator Leyonhjelm.
This stands in stark contrast to the blatant political opportunism from Bill Shorten and the Labor Party who were only willing to wreck and create chaos for Australian farmers.