Decision on backpacker tax a win for region
TODAY’S announcement by Treasurer Scott Morrison that a backpacker tax of 19 cents in the dollar will be introduced next year, rather than a proposed 32.5 cents, is a win for our regional economy.Those in the horticultural, agricultural and tourism sectors in this region had legitimate concerns about the effects of a backpacker tax and I was happy to champion their cause and seek a fairer deal to ensure that the backpacker workforce was not decimated.
Decision on backpacker tax delivers certainty
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.
Concerns of horticulture industry heard: Backpacker tax to go! By George Christensen
The concerns of those in the horticultural industry have been heard, and the plan to introduce a 15% flat rate of tax for backpackers will now face a full review.Tourism Minister Richard Colbeck has announced a cross-department review so that we can take a long hard look at the issues surrounding the so-called ‘backpacker tax’ to make sure that we do not disadvantage growers who have been relying on backpackers to harvest their crops.I have had numerous phone calls and meetings with those in the horticultural industry, and I agreed to support the Bowen Gumlu growers in their push for a 15% flat rate of tax, rather than the proposed 32.5c tax for every dollar earned for those on working holiday visas.
Other worker options in horticulture
I will support the Bowen Gumlu Growers in their push for a 15% flat rate of tax for backpackers. But growers should also consider other options when looking for workers.Growers need to realise though, that this is going to be very difficult to achieve.And though it's labelled a backpacker tax, this is not a tax.It’s the removal of the tax-free threshold which was increased from $6000 to $18,000 only a few years ago.The difficulty is this measure represents a $540 million saving to the Budget bottom line, and it’s going to be extremely difficult to find another avenue to recoup that saving.