Hort groups hook into backpacker tax review

Apples and Pear Australia Limited (APAL) says even a 10 per cent drop in the number of backpackers in certain fruit-growing regions could effectively stop harvesting.

APAL CEO John Dollisson said this would mean the supply of Australian-grown fruit could dry up.

He said some of the nation’s apple and pear growers rely nearly 100pc on backpackers to pick their fruit and they are already hearing rumours that backpackers are not planning on extending their stay, or simply not coming to Australia now, because of the proposed higher tax rate they would face.

“It’s really important to remember that backpackers already pay tax – the same amount of tax that a local resident would pay on the same income," Mr Dollisson said.

"So why should we treat them any less fairly – especially when we want to encourage them to come to Australia.

APAL is not the only horticulture group to dig its heels in after the federal government last week announced the commencement of the review of the controversial tax which would see working holiday makers taxed at 32.5 per cent.

Prior to the election, stopping the implementation of the tax was a big ticket item for the lobby group, Voice of Horticulture (VoH).

VoH chair Tania Chapman said industry welcomed the postponement of the tax but stressed the horticultural industry faced dire consequences if the “bad policy” found its way back.

She said there were many backpackers who believed the tax was in place at the moment and therefore strong communication to the community was needed to let them know this wasn't the case.

“Backpackers contribute more than $3.5 billion to the economy each year and around 40,000 find employment on Australian farms," Ms Chapman said.

"We need more of them, not less to harvest our crops, and ensure our quality produce reaches the market and thus the consumer whilst in premium condition."

The Victorian Farmers Federation (VFF) labelled the review deadline (September 2) as a race against time to kill off the proposed tax.

VFF Horticulture vice president Emma Germano said while it was great to see the federal government taking notice of the people who will be affected by the "toxic tax", the short submission timeframe was a concern.  

“Our farmers know the backpacker tax is a serious threat to their ability to recruit harvest labour, so we’re glad to see Minister Joyce has acknowledged it’s a problem, which is a positive step," Ms Germano said.

“But we’ve been fighting this tax for more than a year, in which time we came up with solutions that the Government rejected.

"So it’s frustrating that we now have less than a month to come back and tell them what we’ve already said.”

Ms Germano said the review process should have started earlier to give the community and government more time to make an informed decision on the future of the backpacker tax.

“Instead of starting a new review process, the government should have provided some kind of feedback on our submission to the last review of the tax (in April this year),” Ms Germano said.

“The backpacker tax is a threat to two of our biggest industries – agriculture and tourism – and it isn’t going to go away until it’s dealt with properly.”

The VFF called on farmers who will be affected by the tax to tell their stories as part of the review process.

“We’re looking for farmers who rely on backpacker labour to talk to us about how the backpacker tax will affect them. We need to put a human face on the backpacker tax,” she said.

Ausveg was less direct in its demands on the government, asking it to provide a "satisfactory response" to wide-ranging industry concerns.

The group has publicly campaigned against the introduction of the backpacker tax, warning that it could have a crippling impact on the vegetable industry.

Ausveg spokesperson Jordan Brooke-Barnett said the organisation will be contributing to the review.

“We’re pleased that the Government has finally commenced this review, and we hope that they listen to the concerns of every industry that relies on this critical labour source over the coming weeks,” Mr Brooke-Barnett said.

“It would be incredibly disappointing to see Australia’s growers suffer as a result of a short-sighted policy decision that failed to acknowledge the flow-on effects of having backpackers live and work in regional Australia.”

“We’d like to see this review result in a sensible solution that acknowledges the vital role that backpackers play in the vegetable industry, as well as in many other industries, and avoids damaging regional economies.”

Assistant minister for trade, tourism and investment Keith Pitt, whose Queensland electorate of Hinkler is heavily reliant on backpacker labour to pick horticulture crops, also encouraged growers to have their say.

“Both farmers and tourism operators have expressed their opinions to me about the supply and taxation of working holiday visa holders, and I have listened to their concerns,” Mr Pitt said.

“As I’ve stated on many occasions, it is equally important that working holiday makers pay a fair level of tax while in Australia.

"However this is a complex issue that goes beyond the tax rate alone."

APAL's Mr Dollisson welcomed welcome the backpacker tax review and thanked all those who have played a role in delaying the tax thus far.

 “However, we do need a decision made on the tax as soon as possible because backpackers are making their plans on coming, not coming, or leaving Australia now – and the fruit production season is fast approaching with the onset of spring,” he said.