AGRIBUSINESS

Political stoushes fuel calls for backpacker tax fix

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

Alex Paull

This article is 8 years old. Images might not display.

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."

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Research Report: Mouse Bait Applications (June 2025)

Mice remain a significant issue for cropping regions and the June Research Report, supported by an investment from the Grains Research and Development Corporation, brings together the latest research and practical recommendations for bait spreading and machinery performance to help growers improve mouse control strategies.

editions

Research Report: Farm Labour (May 2025)

Farm labour, whether temporary, casual, contract or permanent staff, is an essential part of agriculture. This Research Report provides insights to help better source and manage one of the farm’s most valuable assets – its people.

editions

Research Report: Sheep Yards (April 2025)

This month's Research Report includes more than a dozen case studies of new sheep yard builds and renovations from around the country. There are plenty of ideas to make the handling of stock more efficient and stress-free.

editions

Research Report: Large Square Baler Testing (March 2025)

This month Kondinin Group has capacity tested four high-density, large square balers in what is believed to be a first for Australia. Balers from Krone, Kuhn, Massey Ferguson and New Holland were put through their paces, working in windrowed straw.