AGRIBUSINESS

Political stoushes fuel calls for backpacker tax fix

Farmers Federation makes urgent call for a swift resolution of the Backpacker Tax

Alex Paull

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Legislation passed through the House of Representatives last week would implement a tax rate of 19 per cent - lower than the original proposal of 32% - as well as other measures including an increase in the eligible age of working holiday makers to 35. NFF CEO Tony Mahar said while the overall package before the Senate was not perfect, it was a significant win that would deliver an extra $2000 to the average backpacker's pocket. "At the rate of 19%, Australian wages are competitive with New Zealand and Canada and we can start to reconnect with working holiday makers, to once again promote rural and regional Australia as a worthwhile experience," Mahar said. "Farmers can't delay the seasons and planting decisions are being made now. It is unfair to thousands of Australian farmers to put their annual crop at risk." Last week the NFF accused the Australian Labor Party of undermining the compromise package, after Shadow Agriculture Minister Joel Fitzgibbon said Labor wanted to refer the legislative package to the Senate Economics Legislative Committee for a short inquiry, to report back in November.

Mahar said the ALP's subsequent attack on the NFF was saddening. "As a major political party, it is incumbent on Labor to make its position clear," Mahar said. 

"Until now, the only position Labor has ever taken on the backpacker tax was to support a tax rate of 32.5%. 

"This tax, and the long delay in finding an alternative way forward, has inflicted unnecessary damage on the agriculture sector and our competitiveness in global markets. 

"This can't continue. We call on the Parliament to support Australian farmers by ensuring that legislation to restore certainty and fairness to the farm community is passed without any further delay."

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