PAUL JUBB State President President’s Report
BACKPACKER TAX INDUSTRY VIEW
The Tasmanian Hospitality Association (THA) is the peak industry body for hotels, accommodation, restaurants, cafes & catering and clubs in Tasmania. The THA is the Tasmanian branch of the Australian Hotels Association (AHA) and Tourism Accommodation Australia (TAA) national bodies. Below is our industry press release from government on backpacker tax.
Australia’s peak accommodation bodies, the Australian Hotels Association (AHA) and Tourism Accommodation Australia (TAA) welcomed today’s decision by the Federal Government to reduce the tax on Working Holiday Makers (WHM) from 32.5c to 19c along with a $10 million promotional fund aimed at revitalising the sector, but said the imposition of a $5 increase in the Passenger Movement Charge (PMC) was counter‐productive. Under the original proposal, which was scheduled to come into force from 1 July 2016, working holiday makers would have been treated as non‐residents and taxed at 32.5% from the first dollar they earned. They will now pay 19c/dollar instead of 32.5c. AHA and TAA also welcomed the increase in the age limit for Working Holiday Makers from 30 to 35, and the reduction in the WHM visa fee from $440 to $390, measures that TAA had strongly advocated for a number of years. In the latest International Visitor Survey (IVS) figures backpacker nights declined 6.5% and expenditure 1% in the 2015‐16 year, despite overall growth of 10% in international visitor arrival to Australia and 14% growth in visitor expenditure. “AHA and TAA made a strong submission to the Federal Government arguing that the tax hike would provide a major disincentive to working holiday makers at a time when the industry was already experiencing shortages, particularly in regional and remote areas,” said Chair of Tourism Accommodation Australia, Mr Martin Ferguson. “We would have preferred a complete removal of the tax increase, but this is offset by the reduction in visa charges and also the increase in the age limit for working holiday visitors. “In particular we welcome the decision to allow an employer with premises in different regions to employ a WHM for 12 months, with the WHMworking up to six months in two regions. This will allow far greater flexibility for hotel groups who have to take into account seasonality. “We also welcome the commitment to the $10 million promotional fund, but the Government’s decision to increase the Passenger Movement Charge by $5 is disappointing as tourism is Australia’s growth industry, and needs incentives to grow, not disincentives.” Tourism Accommodation Australia (TAA) represents the interests of Australia’s accommodation chains and individual members in the hotel, serviced apartment, integrated resort, motel and vacation ownership sectors. Servicing owners, operators, managers, franchises and other industry stakeholders, TAA is a division of the Australian Hotels Association, a federally registered organisation of employers representing hotels since 1836
KnightFrank.com.au
Informal tenders close Friday 21 October 2016 at 5pm Tahune AirWalk Arve Road, Geeveston
• Tahune AirWalk was established in 2001 and is one of Tasmania’s leading tourist attractions with over 74,000 visitors per year • Includes a 600 metre walkway and cantilever suspended above the forest canopy. plus two swinging bridges, an Eagle Hang Glider Ride, licensed cafe and visitor centre, 8 accommodation rooms, function centre, walks, picnic and barbecue areas • Operated under management - income exceeds $2.25 million p.a. • Owner wishes to sell the business, but not the fixed assets or land • Vendor will provide a long lease over the land and improvements encompassing 120 ha
Ian Reed 0419 670 501 | Scott Newton 0409 186 261 5 Victoria Street, Hobart 03 6220 6999 Knightfrank.com.au/3190771
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Hospitality Review
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