A RESOLUTION of the backpacker tax debacle before the end of the year seemed unlikely last week until, on the last sitting day for Federal Parliament, the Greens negotiated a deal to lock in the Coalition’s 15 per cent compromise.
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Last Thursday agreement was finally reached after days of arguing, thanks to support from Greens senators and a sweetener from the Coalition Government in the form of some extra Landcare funding.
The day before Labor’s amendment to drop the rate to 10.5 per cent received support, but was rejected by the government and wasn’t expected to gain traction when the bill went back to the lower house.
This stand-off and drawn out debate had left those who rely on backpackers to harvest produce in limbo.
National Farmers' Federation chief executive officer Tony Mahar called for common sense.
“We need this issue put to bed, once and for all,” he said last week. “The Senate appears to have abandoned common-sense in rejecting the compromise tax rate.”
The NFF said backpacker workers make up more than a quarter of the national agricultural workforce - some 33,000 backpackers on working holiday visas, down from 40,000 three years ago.
“In some areas that figure is closer to 80 per cent,” Mr Mahar said. “As uncertainty over this tax lingers, inquiries about farm work are steadily dropping away.”
Moree cotton grower Dick Estens AO expressed disappointment when the compromise solution failed to pass the Senate.
“We’ve been using more than 70 backpackers over the past six months, but that group is telling us that it is far easier for them to go to New Zealand or Canada, which would make it difficult for our business,” Mr Estens said.
“I am disappointed in our Parliamentarians, who do not appear to be earning their salaries. I suggest our federal politicians spend some time working on a farm until they come to their senses and reach a solution before it is too late.”
Other industry bodies like Cotton Australia, AUSVEG, the Voice of Horticulture and Citrus Australia, also demanded the ongoing saga be brought to an end.
