By Jeremy Sollars
THE Federal Opposition has thrown a spanner into the works of the controversial backpacker tax, threatening to delay legislation in the Senate which would see the tax reduced from 32.5 per cent to 19 per cent.
Labor will refer the legislation to a Senate economics committee for review and says it will finalise its position on the tax after that committee reports back on 7 November.
Farmers have expressed dismay and anger at Labor’s plans for another review – the fourth review of backpacker taxes and farm workforce issues this year.
The National Farmers’ Federation has accused Labor of “abandoning” the agriculture sector, calling on the Opposition to pass the bills quickly to give farmers and backpackers certainty on the tax, which is due to take effect on January 1.
Labor has refused to declare a position on appropriate rates for backpacker income taxes, while the Coalition backflipped on its plan to introduce a 32.5 per cent income tax on backpacker workers.
Federal Maranoa MP David Littleproud has also slammed the Opposition, saying it was leaving producers in limbo.
“This is an unnecessary delay, negatively impacting on industry and financial security because we’re coming up to peak harvest and tourism season in my electorate,” Mr Littleproud said.
“The Coalition government listened to industry concern in the Maranoa and outlined a new plan for the backpacker tax, but now Labor’s stalling this pathway forward so I call on the cross benchers to step-up in the Senate and pass the amendments since Labor won’t.
“The agriculture and tourism industries make a fundamental contribution to the local economy and often rely on working backpackers, in everything from picking fruit to manning the bar at the local pub.
“I’m calling on the Opposition to stop playing politics with this important reform and provide much-needed certainty for producers.”
He said the Coalition government sought comment on the backpacker tax and more than 1700 stakeholders made submissions to reach a new outcome, cutting the tax rate from 32.5 per cent to 19 per cent.
“Labor still had a 32.5 per cent backpacker tax rate in its official election costings and is still using this as its official policy,” Mr Littleproud said.
“The Coalition’s consulted and worked with the agriculture, horticulture and tourism sectors to bring this issue to a resolution but now Labor’s full of inaction and uncertainty.”
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