The Backpackers Tax – A Grab Too Far

The news that the Federal government has determined to ‘crackdown’ at the running holiday kind profession has been greeted with mixed feelings in lots of areas of the farming network.

Almost anyone welcomes the principle however the method has caused controversy.

Abuses of the gadget

There had been tremendous issues over the abuse of the working excursion visa and how a few employers have taken advantage of such people as a way to provide very low pay and extraordinarily negative working conditions.

Given that most people of such visas are utilized by people operating in the horticultural and agricultural industries, the finger of blame has been pointed, through implication, quite firmly at the ones groups.

Although no person doubts that there have been abuses of the machine through unscrupulous employers, what is some distance much less clear is simply how large a percentage of such employment in general such cases are. Some people are arguing that it represents a surprisingly small minority and therefore enforcing radical solutions to deal with them that have an effect on anybody, is a question of the proverbial sledgehammer and nut.

Taxation

The movement followed is debatable.

In destiny, backpackers and different excursion people will be taxed from their first actual greenback of earnings rather than be entitled to a taxation-unfastened quantity as much as a targeted threshold.

The official authorities figures suggest that over five years it pursuits to raise over $500 million through this new taxation method.

Why humans are sad

Some cynics are pointing out that adopting a solution this is punitive to all because of what is probably a fairly small number of abuses of the system, is a case of huge overkill.

Some also are deeply suspicious of the true motivation here, given that raising taxes and placing extra money into the government’s coffers at exceptional seems to be a warfare of interest. Some would possibly argue that perhaps it’d have been higher to apply existing laws stopping exploitation to remedy the abuses of the gadget in preference to truely trying to cope with it by way of raising more money for the government.

Against a backdrop of difficult countrywide finances and a government seemly casting round to try to reduce fees and lift income, this unique measure will unavoidably motive worries approximately whether or not or now not it is a depend of convenience in place of conviction.