Backpackers tax to be slashed
The Government is looking at big changes to its controversial backpackers tax to appease farmers, industry groups and a restive backbench.
That includes threats by renegade MP George Christensen that he would quit the Liberal-National Party Coalition if the tax wasn’t dumped.
The Sunday Mail reported over the weekend that Christensen had told voters in Dawson electorate that he would leave the LNP if the tax remained in place.
Questioned about his plans by the paper, Mr Christensen said he would keep that commitment, but suggested it was now hypothetical.
“I believe the Government is going to axe the backpacker tax and put in place arrangements that farmers can accept,’’ the Nationals whip said.
“I’m not trying to destabilise but I was that confident such a change will occur that I gave that commitment to locals when I was asked about it before the election.”
The tax scraps the $18,200 tax-free thresholds for foreigners holidaying and working in Australia and charges foreign fruit pickers, farm hands and hospitality workers – many who do jobs in regional areas that Australians refuse to do – a second marginal tax rate of 32.5¢ in every dollar.
There has been speculation in the media that the government could replace the 32.5 cents in the dollar tax with a new agricultural/horticultural worker visa and tax rate of between 15¢ and 19¢ for every dollar earned
Immigration minister Peter Dutton said changes to the planned tax were now being nutted out by the Treasurer Scott Morrison.
“Scott Morrison has indicated he’s working through the issue at the moment talking to people like George and other back-benchers, particularly in regional areas where agriculture is a big problem in terms of wanting to pick fruit and get food to markets that’s rotting on vines and on trees and they can’t get young Australians to work in those jobs,’’ Mr Dutton told the ABC’s Insiders Program.
“So there is a great demand for the labour and Scott Morrison has indicated that he’s working through that issue and if there’s an announcement to make it will be made in due course.”
National Farmers’ Federation president Brent Finlay said this was important to ensure farmers could recruit the workforce they required.
“It is welcome news that there is an increase in focus within the Coalition on the backpacker tax and the need for this ill-conceived measure to be abandoned,’’ Mr Finlay told the Courier Mail.
The tax introduced by former Treasurer Joe Hockey was forecast to raise $540 million during its first three years but angered farm, tourism and hospitality groups relying on seasonal labour, as well as rural Liberal and National MPs.
In May, the government announced it would conduct a review and postpone any changes to the current system until January next year.
by Leon Gettler, September 19th 2016
