Federal Member for Hume Angus Taylor says today’s decision by Cabinet to cut the backpacker tax is a win for the electorate’s farmers and local tourism.

“Reducing the proposed tax rate from 32.5 per cent to 19 per cent will maintain Australia’s status as one of the most competitive destinations for working holiday-makers, while ensuring they pay a fair level of tax,” Mr Taylor said.

“From the fruit orchards in the Wollondilly to the sheep producers in the Boorowa district, agriculture and local tourism make a fundamental contribution to many local economies in Hume.

“Lowering this tax and reducing the application charge for working holiday-maker visas by $50 to $390 will incentivise working-holiday makers to visit and work in the electorate.

“It also means that Hume’s agricultural regions can continue to rely on strong seasonal labour support.”

Mr Taylor said more than 1700 stakeholders contributed to the review through written submissions and face to face consultations.

They made it clear that an early resolution to the tax rate issue was needed.

“Today’s announcement demonstrates the Government has listened and is now providing certainty to stakeholders for the upcoming harvest and tourism seasons,” Mr Taylor said.

“I want to thank those constituents in my electorate, many of them who operate agricultural enterprises, for their feedback and constructive input.

“We’ve listened, we’ve acted.”

From 1 January 2017 the Government will set the tax rate applying to working holiday-makers at 19 per cent on earnings up to $37,000, rather than the 32.5 per cent announced in the 2015-216 Budget, with ordinary marginal tax rates applying after that.

“These changes will lower the cost of coming to Australia for working holiday-makers and leave them with more money in their pockets to spend while here,” Mr Taylor said.

Information about the changes will be progressively uploaded to ato.gov.au.