THE “backpacker tax” is one of the “single worst policy decisions” made by the Federal Government, says Nutrano Produce Group’s Sunraysia operations manager Tania Chapman.
The Federal Government introduced the controversial policy in 2016, which scrapped the tax-free threshold of $18,200 and replaced it with a 15 per cent tax-rate on all income up to $37,000, for working holiday makers.
Last Wednesday, the Federal Court overturned the tax for working holiday makers from eight countries including the United Kingdom, United States, Germany, Finland, Chile, Japan, Norway and Turkey.
However, Ms Chapman said as the decision did not apply to all backpackers, it added another “layer of complexity” and could create further confusion for growers.
She said the way the tax was handled made the country look “incompetent” and also sent a “very strong” message that labour source was not valued in Australia.
“While we still have access to backpacker labour there is a large decline in the number of second year visa workers,” Ms Chapman said.
“This is extremely disappointing as those that have already worked on farms or on pack sheds have experience and are more productive.”
Sunraysia’s Nutrano farms felt the bite of harvest labour shortages this season, to the point their harvest took an extra month.
Ms Chapman said the longer harvest “wasn’t good” for trees going into next season, as the harvest labour Nutrano was able to source were all inexperienced.
“Many didn’t last a week,” she said.
“We need a secure reliable source of labour and the latest decision — which only affects some backpackers from certain countries — will now be seen as Australia ‘getting it wrong’ again or being biased.
“If we as a country are going to grow agriculture to a level that benefits the country and rural and regional Australia then the government has to start working with us not against us.
“We are not looking for handouts, we are not looking for cheap workers, we are looking to have access to that secure reliable workforce.
“Without it we will lose farms and families and that will not bode well for our community.”
Call to repeal backpacker tax
CITRUS Australia has called on the Federal Government to repeal the backpacker tax legislation entirely, with chief executive officer Nathan Hancock calling it “toxic” for agriculture.
Mr Hancock said last week’s decision created further confusion for growers and he urged the government to abandon the tax entirely.
“This tax was bad policy from the outset and has had a toxic effect on the citrus industry, reducing the size of the workforce at a time when Australian growers are expanding to meet international demand,” he said.
“Since the backpacker tax was implemented in 2016, the number of backpackers entering Australia on the 417 visa has dropped by 19 per cent compared to 2013.
“If the Federal Government wants to support Australian agriculture as it claims to, then it should abolish this toxic tax entirely.”
At a public hearing held in Mildura for the Australian Parliament Standing Committee on Agricultural and Water Resources’ Inquiry into growing Australian agriculture to $100 billion by 2030, Mr Hancock said the backpacker tax would impede growth.
The decision does not apply to all backpackers and Citrus Australia urges all workers to review their residency status with their employers and confirm whether this ruling affects them.
