Regulation Impact Statement – Department of the Treasury
On 12 October 2016, the Government introduced legislation relating to reforms to working holiday makers regulations including:
-
applying a 19 per cent income tax rate to working holiday maker taxable income on amounts up to $37,000, with ordinary tax rates for taxable income exceeding this amount; and
-
increasing the rate of the departing Australia superannuation payments tax to 95 per cent for working holiday makers, reducing the visa application charge for Subclass 417 (Working Holiday) visas and Subclass 462 (Work and Holiday) visas from $440 to $390, and increasing the passenger movement charge from $55 to $60.
A Regulation Impact Statement (RIS) prepared by the Department of the Treasury has been assessed as compliant with the Government’s RIS requirements.
The RIS was not assessed as consistent with best practice with the Government’s RIS requirements as a significant and major policy decision on the proposal was announced on 27 September 2016 that was not informed by an updated RIS.
The RIS estimates the proposal will reduce regulatory burden by $3.6 million per annum. The OBPR agreed to the estimate of regulatory burden.