Growcom welcomes the start of the second review by the Federal Government into the backpacker tax. We want the tax scrapped. We have spoken to many horticultural growers whose farming businesses will not be able to harvest their crops if the backpacker tax is introduced at the high rate of 32.5 per cent from the first dollar as proposed.
The horticulture industry is working collaboratively to provide detailed submissions by Friday for the review. Growcom will be making a comprehensive submission on behalf of Queensland horticulture by the very tight timeframe set by the government.
The review was announced by the Coalition during the federal election campaign in response to industry protests about the introduction of the tax, which has now been delayed until January.
The Federal Government has announced it will examine all aspects of the supply and remuneration conditions of labour performed by Working Holiday Maker visa holders (backpackers).
Regardless of the complexity of the issues involved, growers need to see an end to the ongoing uncertainty about the tax.
Typically, horticultural farming businesses of any size may need a few permanent staff from the local area but during the harvest period worker numbers swell manyfold to be able to get the crop off before quality declines.
The day could start at dawn and end in just a few hours to prevent the crop being sunburnt. If a storm hits, the working day could abruptly end. At the height of the season, picking could go on for seven days a week. It is because of this need for flexibility and variability in working hours, that the industry is so heavily dependent on backpackers to provide the vast majority of the harvest labour.
Growers we have spoken to say that their backpackers are telling them they won’t spend their working holidays in Australia next year if the tax is introduced.
Our agriculture and tourism sectors have already put in a joint proposal to government highlighting the flow-on effects which will be felt by businesses across regional communities where backpackers are located while they work on farms.
How will the government fix this problem? We call for the 32.5pc tax to be scrapped immediately to give certainty for the upcoming growing season. We will then work cooperatively with government to develop options that deliver an ongoing, adequate supply of workers willing to work flexible, variable working hours on Australian farms.