May 18, 2016
The Nationals have secured a win for regional communities by successfully lobbying for a six month delay on proposed tax changes for backpacker workers, according to Gippsland MP Darren Chester.
The Assistant Treasurer Kelly O’Dwyer today announced a six-month delay on applying the non-permanent resident tax rate to backpackers, who provide labour for farms as part of their working holiday visa arrangements.
The Federal Government will also conduct a broad review of the workforce shortages faced by the agriculture and tourism industries.
Mr Chester said regional MPs had listened carefully to industry concerns about possible labour shortages resulting from the changes.
“Many regional areas, Gippsland included, rely on the backpacker workforce to get our produce from paddock to plate, and there were genuine concerns the tax measure would discourage overseas visitors from coming to Australia,” Mr Chester said.
“Ideally, we want Australians to be employed in these roles. But when labour is in short supply, the backpackers play an important role especially at peak production and harvest times.
“They also spend their money in our local towns, and there are broader benefits by having people from different countries living in Gippsland and experiencing everything our region has to offer.”
Mr Chester said today’s announcement was the result of intense lobbying by regional MPs and Senators.
“This demonstrates the power of regional Australians when The Nationals are in Government,” he said.
Mr Chester said the review would look at a range of issues which may be affecting the labour supply to agriculture and tourism, including comparative tax and other conditions for backpackers in Australia and other countries, as well as factors discouraging more Australians from seeking work in agriculture.
The number of backpackers has grown significantly since the inception of the 417 and 462 visa programmes, with backpacker visa numbers up from 85,000 in 2001/02 to 226,000 in 2014/15.
About 40,000 backpackers work in agriculture each year to gain a second visa year to remain in Australia.
Mr Chester said there were a number of challenges facing the Gippsland agriculture sector, particularly for dairy, but he remained optimistic about the long-term future of the industry.
“The Coalition Government has put agriculture back on the map in terms of federal policy direction, with three FTAs signed with Japan, Korea and China, and FTAs under negotiation with India and Indonesia,” Mr Chester said.
“Agriculture can be a very rewarding and exciting industry and we want more Australians to be part of it.”
The review will report back to the Minister for Agriculture and Water Resources by 14 October 2016.
