Farmers, backpackers, and tourism operators have welcomed a backpacker tax review announced by the Federal Government.
The backpacker tax has attracted widespread opposition from the agriculture industry since it was first proposed, with vegetable industry body Ausveg – which says the new tax would threaten the viability of the Australian vegetable industry.
The backpacker tax would tax working holiday makers at a rate of 32.5 per cent from the first dollar earned. Any changes to tax rates for working holidaymakers are due to start from 1 January, 2017.
Interested parties have been invited to submit their point of view regarding the tax before 2 September.
The initial proposal that backpackers pay substantially more tax, together with uncertainty since the government announced a review, has seen working holiday makers rethink their Australian travel plans, according to ABC Rural.
“Vegetable growers rely on backpackers as a source of labour, especially during peak seasonal periods, and the backpacker tax threatens to act as a major disincentive to these workers coming out to Australia,” Ausveg spokesperson Jordan Brooke-Barnett said.
“Ausveg will be contributing to the review to ensure the voices of Australian vegetable growers are heard by the government.”
