TTF calls for Government to abandon its push to raise holiday tax to $60
TTF CEO Margy Osmond appeared before the Senate inquiry on Wednesday afternoon and tabled an analysis by KPMG that confirms the Federal Government will raise the $540 million target it has arbitrarily set itself through the proposed changes to how backpackers are treated for tax purposes without the need to increase the holiday tax as well.
“The tourism industry does not accept that the holiday tax hike must be considered lock-step with the backpacker tax package,” said Osmond.
“They are two separate issues and as the KMPG analysis, that TTF has had commissioned, shows it is completely unnecessary for the Government to reach its desired revenue raising goal of $540 million over the forward estimates.
“The Government wants this tax package to ‘wash its face’, and that’s fine, but it doesn’t have to take the travelling public to the cleaners.
“The Government should never have included an increase to the Passenger Movement Charge in the reform package it announced last month, and TTF will make the strongest case why hiking the holiday tax should be abandoned.”
“But, in a broader sense, we are talking about an industry that is incredibly sensitive to price. Tourism is a global industry and Australia is competing with destinations, many of which are much shorter distance than Australia, that are aggressively cutting the cost of travel.”