Will we ever see an end to the frustrating political games being played out over the backpacker tax?
A couple of weeks ago, when Treasurer Scott Morrison announced that he had agreed to soften the government’s proposed tax rate for working holiday makers from 32.5 per cent to 19 per cent, farmers breathed a collective sigh of relief at the thought of moving on from this sorry saga.
After all, it took us 18 months, three reviews and an election to bring the government down to its current position.
But the tax debate has been given a new lease on life by the Labor Party refusing to endorse the new proposal, instead referring the matter to the Senate economics committee for a fourth review. This is clearly unacceptable for most farmers, who will be harvesting their crops in the new year and need the support of backpacker labour.
Labor’s decision to refer the proposal will just prolong uncertainty. It’s hard to see the current fight as anything other than a political point-scoring exercise, where farmers are the main losers.
The National Farmers Federation and Victorian Farmers Federation have argued all along that if the tax problem isn’t sorted soon, we risk losing backpackers to New Zealand, Canada and other destinations with more favourable tax conditions.
During the government’s backpacker tax review in April, the NFF and VFF offered a 19 per cent tax rate as a feasible solution.
We were told it was “bad policy”, although it has since been adopted by the government as official policy. Which begs the question – why take 18 months to arrive at the natural conclusion advocated by affected stakeholders all along?
And why block those hit hardest by the problem from being part of the process by rejecting our ideas outright, with no way of responding?
More than 40,000 visa holders work in the agriculture industry each year and contribute about $3.5 billion to the Australian economy. Agriculture is one of the cornerstones of the economy, and if our politicians are serious about connecting with our industries, they should seek our input without resorting to another review.
It’s vital the nation’s decision makers resolve the deadlock over the backpacker tax immediately. It really is beginning to feel like Groundhog Day.
Emma Germano, VFF horticulture vice-president