Volume 17, Issue 1 – Steen & Peel

ECONOMIC AND SOCIAL CONSEQUENCES OF CHANGING TAXATION ARRANGEMENTS TO WORKING HOLIDAY MAKERS

By Adam Steen and Victoria Peel

The Australian Government’s Working Holiday Maker program currently enables persons 18 to 30 years of age from selected countries to visit Australia for a working holiday. Empirical evidence suggests these visitors make a significant positive economic contribution to the economy. Recent changes in government policy involving Working Holiday Maker visa arrangements, including changes to taxation of Working Holiday Maker earnings, have the potential to change the attractiveness of Australia as a destination of these tourists. This paper addresses these changes and explores the possible implications for Working Holiday Makers, employers and the economy in general.

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