Simple maths belie heroic assumptions on backpacker tax

Updated April 24 2018 - 10:07pm, first published November 9 2016 - 8:01pm

Federal Treasurer Scott Morrison claimed his original backpacker tax would raise $540 million in its first three years. This calculation was based on the heroic assumption that backpacker numbers would not drop as a result of the proposal. If this assumption proves unrealistic, a rough calculation would suggest that 10per cent fewer backpackers would decrease the proposed revenue by, let's say, 10 per cent. Some have suggested that backpacker numbers would drop even more. The maths is simple.

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