Deal reached on backpacker tax

By Jeremy Sollars

THE Federal Government’s backpacker tax saga could soon be over, with the government announcing a compromise on the rate, to now be set at 15 per cent.
The Coalition has already reduced its original 32.5 per cent rate to 19 per cent, after widespread backlash from farmers and tourism operators, who fear it will drive backpacker workers away from Australia.
Labor remains committed to a 10.5 per cent backpacker tax saying that is the only rate that will restore Australia’s competitiveness and international reputation among backpackers.
However, the revised bill looks set to pass the Senate with the support of key crossbenchers.
Mr Morrison said the reduced rate would cost the federal budget $120 million over four years.
Granite Belt and other producers have been furious at both sides of politics over handling of the controversial tax, which has already scared off many overseas travellers planning on visiting Australia and performing seasonal horticultural work during their stay.
Apple and Pear Australia Ltd CEO Phil Turnbull told the Free Times there are “a range of potential negative impacts a higher tax rate would have on the apple and pear industry including Queensland apple growers in the Granite Belt.
“Many growers rely on backpackers to pick fruit and do other jobs around their orchards and in packing sheds,” he said.
“We want the backpacker tax matter resolved promptly and any changes to the tax finalised before the 1 January 2017 commencement date of the original higher proposed tax rate.”