FEARS about the ‘backpacker tax’ that the Federal government was going to introduce have been allayed for now, with the decision delayed until further notice.
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It was feared by many that a move to remove tax-free thresholds from overseas travellers would discourage fruit pickers and harm tourism when it was due to come into effect on July 1.
It would have meant that foreign seasonal workers would have been slugged 32.5 cents from the first dollar that they earnt.
The tax was introduced by former treasurer Joe Hockey, and was forecast to raise $540 million in its first three years, and this delay will now cost the government $40 million, which has already been factored in.
The proposal to introduce the tax will now be reviewed as part of a larger review of workforce shortages that are being faced by the agriculture and tourism industries, of which a report will be introduced in October allowing any changes to be introduced by January 1, 2017.
Local farmer Mike Shepherd, who owns the ‘Yurtfarm’ at Pomeroy, near Goulburn, employs backpackers on his property to help him with any farm work, and says that they shouldn’t be taxed at all.
“I think the backpackers should not be taxed, because they do monotonous and allweather work that other Australians won’t do,” Mr Shepherd said.
“We’ve got fruits like apples and cherries that need to be picked at certain times of the year, and you can’t find the Australians to do that.
Backpackers are always available and they come from different countries, they’re energetic and will work at any time of the day.”
Mr Shepherd has had over 300 backpackers come to his farm over the years.
“My experiences with them is that they are a disciplined type of people,” he said.
“The other thing about backpackers is that they work together well and they have a lovely combination of the work spirit, where they love to work in a happy environment.”
Mr Shepherd is in favour of continuing to encourage the backpackers to come to Australia and feels that the tax would diminish that encouragement.
“I think introducing a tax like this would be deleterious to the whole business,” he said.
“On top of that we want refugees, and when they do work here in different places they’re going to meet many other people.
They come in now for 66 days and after this period are given a Visa, which allows them to stay and do say, three months on a trial.
Once they’ve done that trial and they’ve done well, a report will come from the owner of that particular farm who reports to the Department of Immigration.
They select some of the best refugees you could ever have.
Some people even marry them- I am one!”
NSW Farmers Horticulture Committee Chair Brett Guthrey said the controversial backpacker tax will spearhead a list of discussion points on issues affecting the state’s fruit, vegetable and flower growers.
NSW Farmers will hold their Horticulture forum and AGM in June to update growers and industry representatives on developments in the industry over the past 12 months.
Mr Guthrey - who grows persimmons in the Sydney Basin - said the AGM to be held on June 2 would shed some light on challenges the industry is up against currently.
“The proposed backpacker tax has been a revolving issue; and they rushed it through to start with so that is where the fear is coming from,” Mr Guthrey said.
“Around 40,000 backpackers work on Australian farms each year, so this will have a huge impact on our industry if it goes ahead.”
Mr Guthrey said General Manager of Workplace Relations and Labour Issues at National Farmers Federation (NFF), Sarah McKinnon will address the forum with a discussion on the backpacker tax and the implications for industry.