Future of 95% DASP tax unclear as backpacker tax debate delayed

Update: the tax rate on DASPs for backpackers is likely to go to 65% from 1 July 2017, not 95%, after the Government and Greens reach a deal on the ‘backpacker tax’.

The future of the Government’s proposed changes to the ‘backpacker tax’ is unclear, along with the 95% tax on Departing Australia Superannuation Payments (DASP) for backpackers, as debate on the Bills has been pushed back.

A Senate committee considering the proposed legislation was due to report on Monday, but when this was delayed until Wednesday so was debate. On Tuesday Labor announced it would attempt to amend the backpacker tax down to a rate of 10.5%. The report was tabled on Wednesday, but the Bills weren’t debated. The Bills were listed on the Senate Notice Paper, but it appears the Government removed them from the list for debate. Labor and Senator Jacqui Lambie attempted to bring on a debate, but this failed. Read more...

Higher DASP tax “inequitable”, could discourage backpackers

The increased tax on superannuation for backpackers has not been welcomed by the superannuation or agriculture industries, though there are differing views on the preferred measures.

The Australian Institute of Superannuation Trustees (AIST) is “concerned” the proposal to tax the Departing Australia Superannuation Payments (DASP) of backpackers at 95%.

“This rate will only apply to two categories of foreign nationals working in Australia, those on 417 or 462 visa subclasses or related bridging visas. All other categories foreign nationals who work temporarily in Australia will be subject to the existing DASP tax rate of 47% if and when they take their superannuation,” says the AIST submission to a Senate inquiry on the Bill. Read more...

DASP to be taxed at 95% for working holiday makers

Update: the tax rate on DASPs for backpackers is likely to go to 65% from 1 July 2017, not 95%, after the Government and Greens reach a deal on the ‘backpacker tax’.

The Government has announced that Departing Australian Superannuation Payments (DASP) for working holiday makers will be taxed at 95% from 1 July 2017. Such payments are currently taxed at between 0% and 47%. This is intended to offset the Budget impact of changes to the ‘backpacker tax’.

The Explanatory Memorandum (EM) to the Bill says: Read more...