Farmers across the nation breathed a sigh of relief on Tuesday, following the announcement the proposed and highly controversial ‘Backpacker Tax’ would be implemented at a reduced rate of 19 per cent.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
First flagged in the 2015 Federal Budget, the measure had originally been set to tax working holiday makers as non-residents at a rate of 32.5 per cent. However, the agricultural community, fearing its temporary workforce would be decimated by this clear disincentive for backpackers to come to Australia, strongly opposed the measure. This opposition included a petition which attracted around 50,000 signatures.
National Farmers’ Federation president Brent Finlay said they had always advocated for 19 per cent rate. “We are delighted today to see government listen to its constituency and not put in place a tax that would have hurt farm production and, ultimately, the Australian economy,” he said.
Member for Northern Tablelands Adam Marshall told Fairfax Media he believed the decision was common sense.
“For a lot of primary producers the backpacker workforce is very important,” he said.
“There’s a sprinkling of seasonal workers throughout Armidale and Guyra and especially in Moree with the citrus farms,” he said.
Parkes Federal Member Mark Coulton said the change recognised the importance of keeping regional economies strong.
“Agriculture makes a fundamental contribution to the local economy in the electorate of Parkes,” Mr Coulton said. “The win on backpacker tax is a win for Parkes electorate farmers heading into the harvest season.
“It’s one more way that we are working to ensure the electorate of Parkes remains a vibrant hub of industry and employment into the future.”
Cotton Australia also welcomed news, with Cotton Australia general manager Michael Murray endorsing the decision.
“As we have maintained, the Backpacker Tax as originally proposed would have been disastrous for the cotton industry and many other agricultural sectors.”
“Many cotton growers rely on backpackers and other seasonal workers to ensure production at critical periods of the year, and our industry would have faced an extreme burden if the proposed Backpacker Tax had proceeded.”