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Question2
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Q2)

The working holiday maker bill is very much important for the people from the other countries
especially the young people to see and understand Australian culture also earn money so that
they can fund their travelling expenses. In the proposed new bill it has been decided that the
number of years that the working holiday maker will be able to stay in Australia will be around
one year which is beneficial for working holiday maker like me as it will give me more time to
explore the different parts of Australia and also simultaneously earn more money so that I can
fund my travel expenses in a better manner (Loc.gov, 2017). The earlier maximum number of
stay was limited to six months thus it can be said that by increasing the limit for the number of
days to stay will help to boost the morale of the working holiday makers to come to Australia.
Another significant change that has been made is that the tax rate for the working holiday makers
has been proposed to be reduced to 15% from the earlier percentage of 32.5% upto the earnings
of $37,000 and after the regular taxes will be levied. This is major step though more reduction in
the tax rate was needed, at least 10%, but still I will consider it as a welcome step. If my total
income from during my stay in Australia as a working home maker and working at different
places is around $30,000 then earlier I had to pay $20,250 whereas now with the introduction of
the new tax rate of 15% the total deductions from my income will be around $4500 where as the
in the earlier case it was about $9750, thus I will be save around $5250 which will help me to
explore Australia more and visits all those places which earlier I was not able to visit due to the
cash crunch. There are also certain other steps like that of the reduction of the base visa
application fees to $50 which was earlier $440-$390. These steps will help to encourage me to
come to Australia again as working holiday maker. But there are also several amendments that
have been made in the bill which can have a negative impact on me as working holiday maker in
Australia. Like the new amended bill has proposed that to increase the passenger movement
charge which will make the movement from one of the state to another very costly for a traveler
like me who is planning to visit the different states in Australia (austlii.edu.au, 2017). Also the
government has proposed to further reduce the percentage of the percentage of superannuation
from 95% to 65% which means that the working holiday makers like me shall have to shell out
more money when leaving Australia. These factors will definitely have a negative impact on my
stay as it will complicate the duration of stay in Australia and will also make it economically
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unfeasible to work and travel in Australia as there are also other destinations in the world which
will become cheaper.

References

austlii.edu.au. (2017). [online] Available at:

http://www.austlii.edu.au/au/cases/cth/aat/2015/125.html [Accessed 8 Jan. 2017].

Loc.gov. (2017). Australia: Parliament Passes 15% “Backpacker Tax” Rate | Global Legal
Monitor. [online] Available at: http://www.loc.gov/law/foreign-news/article/australia-
parliament-passes-15-backpacker-tax-rate/ [Accessed 8 Jan. 2017].

Tax Technical. (2017). Homepage. [online] Available at: http://taxtechnical.com.au/ [Accessed 8

Jan. 2017].