ON-FARM

Backpacker tax concerns turn to frustration

The backpacker tax continues to frustrate farmers

Alex Paull

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The Senate Inquiry into the Working Holiday Maker Reform package recommended that the Coalition Government’s legislation be passed to maintain Australia’s attractiveness to backpackers, and secure supplementary harvest labour for Australian farmers.

But peak farming bodies are concerned that the government and the opposition are ‘playing politics’, and have called for an urgent resolution.

In its submission to the Inquiry, the National Farmers Federation backed the revised 19% figure, and president Brent Finlay said ‘political antics’ had sapped farmers’ confidence in the parliamentary process.

“Amongst the farming community, anger is replacing frustration. Our livelihood is not some football for the political establishment to kick around,” Finlay said.

“I hope that out of the Canberra hotbed of intrigue and power plays, our politicians will find a way to break the backpacker tax impasse. 

“Australian farmers’ efforts deserve more than a rabble response.

“We know that any outcome will be an imperfect one, but this is better than 32.5% which, despite those looking to play spoiler on this issue, is exactly what backpackers – the shrinking numbers of them that is – will pay from 1 January next year.”With only two parliamentary sitting weeks remaining in the year, farmers are concerned that time was running out to resolve the issue before the default rate 32.5 per cent commences on January 1.

Finlay’s concerns were echoed by Queensland Farmers Federation president Stuart Armitage.

"QFF has continually supported and advocated for an internationally competitive tax rate that ensures Australia remains an attractive and competitive destination for backpackers to work and play,” Armitage said.

“The proposed government superannuation reforms remain a separate and continuing issue for farmers and are well overdue for a comprehensive review.”

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