The Tourism & Transport Forum Australia (TTF) has welcomed the Federal Government’s announcement that it will delay the introduction of the backpacker tax and undertake a whole of government review into working holiday visas.

“The backpacker tax is a bad policy and we are very pleased to see the Federal Government has been listening to industry and will delay its introduction of the tax until at least 1 January 2017,” said Margy Osmond, TTF CEO.

“Industry will continue to argue that the preferred outcome is for the Federal Government to abandon the backpacker tax in its entirety.

“The concept of taxing working holiday makers at 32.5 per cent on every single dollar they earn is foolhardy when they have the entire world as a destination to travel to and spend their money in. If we embark on this policy they simply will not come to Australia.

“The tourism sector is already expecting a 123,000 workforce shortage by 2020, driving away working holiday makers will only add to the challenge of securing staff especially in rural and remote regions that depend on seasonal workforces.

“Industry looks forward to continuing the dialogue with the Government and the Opposition on improving working holiday visas and encouraging more of them to visit Australia and support our regional economies.”