Decision on backpacker tax delivers certainty

MAY 17, 2016: The backpacker tax is gone.The Federal Liberal National government is deferring the tax for six months pending a review which is expected to come up with a lower, more competitive tax rate. I met with Bowen Gumlu Growers Association president Carl Walker in Bowen this morning to share the news, which will provide fruit and vegetable growers with greater workforce certainty.The backpackers I spoke to were also happy to hear about it.We definitely need to ensure that our growers have the workers they need to harvest their crops, but we also need to ensure that as many Australians as possible have the opportunity to take up work on farms.I hope this review of arrangements for those on Working Holiday Visas will also look at ways we can boost Aussie participation in these industries.The government review will look at farm labour visas, tax rates for those visa holders and superannuation paid to those visa holders.Carl Walker has suggested that the superannuation currently paid to backpackers, which is mostly spent outside of Australia, be used for training young Australians in the horticulture industry.That way, foreign workers will be helping boost the domestic pool of labour needed on Australian farms.It’s an idea worth considering as we find a way to ensure we have a fair system and an adequate supply of labour.