Changes in plans to tax backpackers

CHANGES TO THE BACKPACKER TAX

* 19 per cent tax to apply from first dollar on earnings up to $37,000, starting from January 1, 2017.

* Above that, normal marginal tax rates of 32.5pc, 37pc and 45pc in line with Australian taxpayers.

* Tax-free threshold scrapped.

* $50 cut to fee for working holiday visa application (down to $390).

* Let employers with premises in more than one region employ the same person for six months in one place then six months in another.

* Employers of working holiday makers will have to register with the tax office.

* 95 per cent tax on superannuation payments once working holiday maker leaves Australia.

* $5 increase to passenger movement charge (up to $60) from July 1, 2017.

* $10 million fund for ads to attract backpackers to Australia.