Working Holiday numbers down post Backpaper Tax
21/2/2017
New figures claim confusion around the backpacker tax has led to a reduction in working holiday applications.
New figures claim confusion around the backpacker tax has had a negative flow on to the tune of 4600 working holiday applications.Department of Immigration figures show 104,250 applications for 417 visas were submitted in the later half of 2016 — down from the 108,898 received for the same period in 2015.
However the the second-year visa that backpackers are eligible to apply for after they complete 3 months’ regional work (known as the 462 Visa) saw an increase of 1500 applicants, from 10,908 in June-December 2015, to 12,412 in the last half of 2016.
Sally McKinnon from the National Farmers' Federation was not surprised given the negative publicity around the tax.
National Farmers’ Federation workplace relations manager Sarah McKinnon said the numbers were as expected, given the negative publicity debate the backpacker tax attracted, and were in line with the downward trend in backpacker arrivals over recent years.
“One to watch will be how many 417 visa holders transition into a second-year visa — if there’s a drop it means they’re not staying,” Ms McKinnon said. “But I don’t think that will be the case — having reached a resolution (on the tax rate), that’s a pretty good outcome and I don’t think it’s a disincentive.”
It's not all bad news though, thanks to a $10m tourism campaign aimed at attracting backpackers.
Trade and Tourism Minister Steve Ciobo said an STA Travel report from the UK showed a 16 per cent increase in flights booked and 60 per cent increase in working holiday visa sales.
Mr Ciobo said the federally-funded campaign had also attracted 265,000 hits on the dedicated working holiday-maker website, 17.3 per cent of which led to applications — above the standard campaign average of 6 per cent.
