Two West Australian Federal MPs have revealed how they sat in Treasurer Scott Morrison's office the night before the 2016-17 budget and pleaded with him to reconsider the proposed Backpacker Tax.
Federal Member for Forrest Nola Marino and Federal Member for O’Connor Rick Wilson met with a group of 50 key agriculture stakeholders in Manjimup on Friday night to address community questions and concerns.
“The night before the budget, Barnaby Joyce, Nola Marino and myself sat in Scott Morrison's office to plead our case,” Mr Wilson said. “The treasurer rejected all our recommendations which is somewhat understandable given the timing.”
Mrs Marino said the application of the non-permanent resident tax rate for backpackers, which was due to commence on July 1, 2016, has been delayed six months for an independent review.
If the tax is introduced as it stands in the 2016 federal budget, backpackers coming to Australia for seasonal work will pay 32.5 per cent tax on every dollar earned.
Currently, backpackers on a 417 visa pay a tax rate of 19 per cent up to $37,000 and 32.5 per cent up to $80,000 and are eligible for a tax-free threshold of $18,200.
Shire of Manjimup president Wade DeCampo said it was important for the community to send a strong message back to Canberra.
“The Shire’s population can increase by 10 to 15 per cent during peak times and the pipeline of backpackers has already started to dry up,” he said.
A number of local farmers told the meeting they had also noticed less interest from overseas workers since the tax change was announced.
Jasper Farms director Neil Delroy, WA’s largest avocado producer, told the meeting he hires up to 250 backpackers a year and relies on them to help him get his produce ready to sell.
“The government had plenty of warning that this was coming and chances to do something about it,” he said. “This debacle is creating uncertainty which is not fair and we are not going to swallow it.”
Manjimup farmer Brad Ipsen, whose family is one of Australia’s leading producers of broccoli, sweet corn and lamb, said the review needs to focus on ensuring security of the labour force that has allowed the industry to flourish. “The government has spent a lot of time talking about backpackers but virtually no time talking to backpackers,” he said.
