Roads, telecommunications and the backpackers tax will be Victorian farmers’ main focus in the lead up to the federal election, after what was described as a disappointing Federal Budget.
Victorian Farmers Federation (VFF) president Peter Tuohey said most of the initiatives in the budget, including $220 million for the Murray Basin rail project, had already been announced.
“It’s not a very agriculturally focussed budget – it’s more focussed around taxation and jobs,” Mr Tuohey said.
He said attention would now turn to the upcoming July 2 election, expected to be called by the end of the week. Mr Tuohey said one of the biggest budget disappointments was the government’s failure to address issues around the backpacker tax. The government said it still planned to go ahead with its original policy of taxing working holiday visa holders as non-residents at 32.5 per cent. Mr Tuohey said he was aware Treasurer Scott Morrison had hinted at further announcements, during the election campaign.
“I suppose they are testing the waters a bit to see how much angst they get out of it,” Mr Touhey said. “I think we have to focus on getting the message through to the government that this is a critical issue - I don’t see it as being a good idea to tax them so hard that they don’t want to come to Australia as a destination, and work while they are here.”
The VFF’s horticulture vice president Emma Germano said many stakeholders were wondering why they bothered putting recommendations to a cross-departmental review.
“The Federal Government invited industry to the table to help solve the backpacker tax problem and they praised us for coming up with a position and presenting workable ideas for addressing the issue,” Ms Germano said.
“But now the Government is saying that it plans to go ahead with its original policy and has rejected the solutions we gave them, so what was the point in asking us to help in the first place?”
The VFF and its partner organisations proposed an alternative tax rate of 19 per cent for backpackers from the first dollar earned, which would be achieved through deactivation of the tax-free threshold.
Mr Tuohey said the VFF was pleased with spending on water infrastructure projects, including dams and pipelines, through a $2 billion Water Infrastructure Loan Facility.
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“Victoria has a long list of water infrastructure projects which will improve our states water security and boost agricultural opportunities,” Mr Tuohey said.
An additional $7.1 million funding for the Rural Financial Counselling service, which will extend services provided across the country for a further four years, was also welcome.
But Mr Tuohey flagged telecommunications and roads as key election issues, after he said both were ignored or underfunded, in the budget.
The VFF would also be seeking to highlight the need for increase biosecurity surveillance, through the Australian Quarantine Inspection Service (AQIS)
There were also concerns around the Murray Darling Basin plan, which “has a few flaws, which need addressing.”
