By Jeremy Sollars
PEAK horticulture body, Growcom, this week welcomed the eleventh hour agreement between the Australian Greens and the Coalition to support the amended backpacker tax bill setting the backpacker tax rate at 15 per cent. The legislation passed the Senate last Thursday night, 1 December.
Chief Advocate Rachel Mackenzie thanked the Greens for working out a compromise with the Coalition to end the political brinkmanship and hammer out a sensible position which benefitted the industry.
The $100 million for Landcare was an added bonus.
“Growers can breathe a sigh of relief that sanity has finally been restored in the form of a competitive rate of tax agreed to by the industry which is equivalent to that paid by workers under the Seasonal Worker Programme,” Ms Mackenzie said.
“A 15 per cent tax rate will ensure that Australia will continue to be seen overseas as an attractive destination for working holiday makers. That we had to go through this disgraceful political circus for the past 18 months to get to this point will not be forgotten by growers in a long, long time.
“However, uncertainty has now been banished and growers currently planning crops next year can have more confidence that workers will return, hopefully at the same levels as have formerly been the case. We also hope that those growers harvesting summer crops now or in the next few weeks will not be unduly disadvantaged by this late decision.”
As a result of the agreement, the Bill was passed by the House of Representatives and the Senate late last week.
Under the agreement, the withholding tax rate for 417 and 462 visas will be set at 15 per cent, consistent with the income tax rate applicable to 416 visa holders under the Seasonal Workers Programme.
The agreement included an amendment to the superannuation arrangements for Working Holiday Makers which will be set at 65 per cent for all 417 and 462 Visa holders from 1 July 2017.
In addition, the Government agreed to provide a one-off additional funding commitment of $100 million to be provided to Landcare Australia.
Stanthorpe apple producer Rosie Savio said she was simply “relieved” the issue had been resolved and had no comment to make on the political machinations involved.
She said her family operations used backpackers “all year round” and was confident they would have a sufficient labour force when harvest season commences next February.
