Cotton Australia and Parkes MP Mark Coulton have weighed in for the New England North West against the proposed ‘backpacker tax’, joining more than 1700 people and groups who provided feedback during the two-month submission period.
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Their views on the tax change – which they say will discourage foreign workers and be a major blow to businesses – are now being analysed as the federal government considers the plan.
It will make its final decision on the Working Holiday Maker Visa Review towards the end of the year and implement any changes on January 1, 2017.
Cotton Australia wrote that working holiday makers should pay some tax, but the proposed rate was too high and would make Australia a less attractive destination.
Working holiday makers under 30 who stay in one place for six months can earn their first $18,200 tax-free. Under the proposed change, they will be taxed 32.5 per cent from their first dollar.
“Cotton Australia supports the recommendations of the NFF and recommends the government scrap the current proposal for a ‘backpacker tax’ at 32.5 per cent and replace it with a 19 per cent tax rate with no tax-free threshold, as was proposed in the initial review of the tax in March 2015.”
It gave case studies of two anonymous Mungindi properties. One had 5000-plus hectares planted to cotton, had 30 permanent staff and hired 10 or more backpackers per year to help with irrigating, harvesting, maintenance and general duties.
Without enough backpackers, they would struggle to find workers during the season’s peak periods.
“Most locals ... are not seeking variable work that only lasts for a few months of the year. That’s why we are so reliant on backpackers.”
Mr Coulton said he had heard from many worried people in his electorate.
“Since this matter was announced in the 2015-16 Budget, many employers are struggling to source backpackers, stating that the proposal has already discouraged backpackers from seeking work in rural areas.”
Most locals ... are not seeking variable work that only lasts for a few months of the year.
- Mungindi property case study.