Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016 (No. 2)

The majority voted to pass the bill in the Senate. In parliamentary jargon, they voted in favour of reading the bill for a third time.

Because the bill has already been passed in the House of Representatives, it will now become law.

What is this bill?

The Government has already tried to pass this bill once in November but was unsuccessful because the Senate wanted to make changes to the bill that the House of Representatives didn't agree with.

It is part of a series of bills to change the income tax arrangements for working holiday visa holders. If passed, they will mean that visa holders will be taxed from the first dollar earned, rather than having the usual tax free threshold.

The original version of this bill would have applied a tax rate of 19% for visa holders earning up to $37,000. This new version will apply a tax rate of 15%.