Tax deal a win for backpackers and local workers

28 NOVEMBER 2016: A 15 per cent tax rate for backpackers is a good outcome for North Queensland farmers, backpackers and Australian workers. The Liberal National Government announced today it had negotiated a deal with One Nation for the tax rate applying to working holiday visa holders.I have always maintained the rate should be somewhere between 15 and 19 per cent to strike the right balance between attracting the workforce required and protecting the interests of Australian workers. It was important to set the tax rate low enough to attract backpackers into North Queensland farms and the Bowen Gumlu Growers Association had proposed 15 per cent as a good compromise. But it is also important to ensure Australian workers will not be taking home less pay than foreign workers doing the same job.The Liberal National Government had proposed changing the tax rate from 32.5 per cent to 19 per cent, a rate that was accepted by farmers. The Labor Party’s rejection of the 19 per cent proposal was politically motivated but their plan ultimately backfired. The Labor Party sold out the Australian workers in favour of playing political games and it’s blown up in their face because they are left holding the can while One Nation has negotiated a sensible compromise.