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Australia's backpacker tax delayed until January 2017

Xinhua, May 17, 2016 Adjust font size:

Australia's federal government will delay the introduction of a backpacker tax by six months, the ABC reported on Tuesday.

Assistant Treasurer Kelly O'Dwyer said the government would conduct a review into working holiday visas and postpone any changes until January 2017.

Several lobby groups have said the tax might damage Australia's tourism sector in the long term.

The tax, which was set to come into effect from July 1, would have seen backpackers on a working holiday visa pay 32.5 cents on every dollar earned.

The National Farmers' Federation (NFF) told the ABC on Tuesday it supported the review of the visa system, but said the delay created further uncertainty for farmers, as they already needed to lock in workers to pick crops later in 2016.

"Putting it off for another six months doesn't help anyone," NFF chief executive Tony Mahar said.

"If it is bad policy, it shouldn't be there."

However, Deputy Prime Minister and Nationals leader Barnaby Joyce said it was a good outcome for regional Australia.

"I'm just very happy that today we have got a further extension so we can continue on attracting season workers to Australia to 1 January to give us enough time to get to a longer term solution," Joyce said. Endit