From 1 January 2017, the Working-Holiday visa holders in Australia will have to pay 15% taxes from the first dollar they make.
The government reached a deal with the Greens to pass the legislation. In exchange for their support, the government will cut down the superannuation tax from 95 to 65% and will add an extra $100 million in Landcare funding.
The lengthy backpacker tax saga
Last year, the government brought up a 32,5% backpack tax, which was not welcomed at all. Farmers were worried they would lose their workers and the oppositions parties refused to support the tax.
The government lowered their tax proposal to 19%, then 15%, but included an additional 95% tax on superannuation.
Farmers from all over the country agreed with the 15% tax this week.
But the Labour Party still refused to back the government, asking for the tax to be lowered at 10,5%, then at 13%.
It's finally with the support of the Greens that the government was able to pass its backpacker tax yesterday.
