A TSUNAMI of discontent from farm groups is swelling against Canberra over its handling of the backpacker tax.
The surge comes after crossbench Senators Derryn Hinch, One Nation’s Rod Culleton and Tasmanian Independent Jacqui Lambie rejected a compromise of a 15 per cent tax rate yesterday.
The new rate of 10.5PC voted on in the Senate must now go back to the House of Representatives and it seems unlikely the Coalition will back it.
If an agreement is not reached today, the tax will revert to 32.5pc from January 2017.
Fitzgibbon rebuked by QFF on backpacker tax
QUEENSLAND farmers have accused Shadow Agriculture Minister Joel Fitzgibbon of misinterpreting a conversation about the farm group sharing Labor’s 10.5 per cents position on the backpacker tax.
Mr Fitzgibbon held a media conference today in Canberra where he accused PM Malcolm Turnbull of having lied this morning on a number of occasions to the Australian community on the issue and telling so-called rich, European backpackers “you’re not welcome here”.
Shadow Minister for Agriculture Joel Fitzgibbon says Turnbull and Joyce to blame for backpacker debacle
Shadow Minister for Agriculture Joel Fitzgibbon has released a statement saying Malcolm Turnbull has lost the plot by claiming Labor believes “rich white kids from Europe should pay less tax than Pacific Islanders working here to send money back to their villages”.
Mr Fitzgibbon says this is a lie and under the tax rules for backpackers, 95 per cent of their compulsory super contributions are claimed by the government when they leave Australia.
“The combination of super tax and the tax rate means the effective tax rate for backpackers under Labor’s compromise of 10.5 per cent is higher than for the Seasonal Worker Program, as these workers are not subject to the same superannuation clawback arrangements.
“In addition, under Labor’s 10.5 per cent compromise, there is no income level at which someone on a working holiday visa pays less tax than an Australian worker.
“There is no one else to blame but Malcolm Turnbull and Barnaby Joyce for the backpacker tax debacle they find themselves in.”
Backpacker tax: Malcolm Turnbull attacks Bill Shorten for favouring 'rich white kids' from Europe
With time running out to find a solution to the backpacker tax impasse, Prime Minister Malcolm Turnbull has ramped up his rhetoric on the issue by accusing Opposition Leader Bill Shorten of favouring "rich white kids from Europe" over poor Pacific Islanders and young Australians.
This disgrace will be remembered says Growcom
Peak horticulture body Growcom has called on the crossbenchers, Labor and the Greens to pass the 15 per cent backpacker tax rate in the Parliament or be complicit in condemning industry to 32.5pc.
“Today will live in infamy if politicians can't agree to a compromise position on the backpacker tax rate in the next few hours," said Growcom chief advocate Rachel Mackenzie.
“Ironically, by refusing to support the fair rate of 15 per cent agreed to by industry they are tacitly endorsing the Coalition’s dodgy budget measure of 32.5pc.
Ms Mackenzie said horticultural growers across Queensland would not forget today’s performance by politicians and their apparent inability to come to a compromise in the Parliament for the benefit of the horticultural industry.
“Without a compromise today, these politicians are just putting in a 32.5pc tax regime for working holiday makers on January 1. The industry will not forget," she said.
“It is a disgrace that in these last available hours of deliberation in the Parliament for the year, politicians are quibbling about a few percentage points either way when the horticultural industry has accepted 15pc and while the spectre of 32.5 per cent looms over the horticultural industry from 1 January."
WoolProducers Australia stands by a 15pc
Australia's wool growers believe the 15pc rate is fair, internationally competitive and recognises the unique nature of seasonal work.
WoolProducers Australia senior vice president Ed Storey doesn’t believe backpackers should pay less tax than those on the Seasonal Worker Program.
“Senators need to stop thinking about their own political games, pass the legislation and move on. It’s not about them - it is about Australian business wanting to get on and produce things,” he said.
Australian Dairy Farmers says months of indecision have hurt the dairy sector
ADF said every day the backpacker tax issue remained unresolved hurt the dairy industry and rural Australia.
ADF president David Basham said after 18 months of continued lobbying, the agricultural sector needed a decision that ensured certainty for backpackers and employers.
“We need the message out there now that backpackers are welcome on our farms and to do this we need a fair tax rate,” he said.
“We believe that backpackers should not pay less tax than those on the seasonal worker program, which is primarily an aid program.”
ADF said the government’s decision to reduce the proposed tax rate from 32.5 per cent to 15pc cent tax maintained Australia’s status as a competitive destination for working holiday makers, while ensuring they pay a fair level of tax.
“Compromises have already been put on the table and it is crucial for the industry that this is resolved,” Mr Basham said.
“The Labor Party promised the issue would be resolved before the end of this year.”
Avocados Australia said the legislation must be passed today
Avocados Australia chief executive John Tyas said the industry was already immensely disappointed the government would be pocketing 95 per cent of backpackers’ superannuation – a cost that industry would be having to bear the brunt of – and something that seems to have been hidden in this debate.
“At the moment, we’re seeing the government giving with one hand while taking with the other,” he said.
“Our position is that as long as the new backpacker’s tax rate stays between 10.5 and 15 per cent, growers can live with that. But sort it out so our growers and backpackers have some certainty.
“Our farmers need these workers to do their job of supplying Australians with premium grade, highly nutritious food.
“Without backpackers working in the avocado industry, everyone will suffer the cost.”
Cotton Australia general manager Michael Murray says a decision on the tax has been a long-time coming
Mr Murray said Australian farmers have been waiting 18 months for legislators to reach a sensible conclusion to the issue working holiday maker taxation.
“The Senate appears to have abandoned common-sense in rejecting the compromise tax rate,” Mr Murray said.
“We call on both houses of Parliament to put aside their political differences and swiftly come up with a solution that is fair and ensures Australia remains globally competitive in attracting crucial seasonal workers.”
Unprecedented farmer anger at political game-playing over backpacker tax
The National Farmers’ Federation says there’s unprecedented disillusionment and anger among the farm sector at the political games being played over the backpacker tax in Canberra.
NFF President Fiona Simson made an urgent trip to Canberra yesterday as the chaos erupted with the shock Senate vote and told media the 15pc rate remained the best way of getting the issue resolved, before parliament ended for the year.
Victorian Farmers Federation horticulture vice president Emma Germano says the Senate has made a mockery of the political process
“This has been a disastrous result for the agriculture industry and I hope the Senate is comfortable in the knowledge that they could have destroyed this season’s harvest for many hardworking farmers,” Ms Germano said.
She said the bitter stalemate was putting the agriculture sector under increasing stress as many farmers struggled to find reliable temporary labour.
“There is no question that this ugly fight has caused tremendous damage to our reputation,” she said.
“We have already seen a drop-off in backpacker numbers, and with much of the harvest already in full swing, many farmers are struggling to find the labour."
Queensland Farmers’ Federation president Stuart Armitage described the situation as "one of the best examples of the worst of politics"
“It is extremely disappointing that our politicians would rather play a game of ‘last man standing’ than resolve this urgent issue affecting Queensland’s farmers and regional communities,” Mr Armitage said.
“It is simply unacceptable that farmers and regional Queensland continue to be kicked around like a political football only to satisfy the egos and malignant infighting that now dominate the backpacker tax issue.”
“Politics is the art of compromise. No one gets everything they want. Unfortunately, one of the many great things about Australia and our political system has always been the pragmatism of its people, and by extension its elected representatives.
"This guiding principle seems to have been lost following the defeat of the 15 per cent compromise.”
Australian Blueberry Growers Association president Greg McCulloch says the proposed 15pc tax is fair and reasonable
“We are in the middle of harvest at the moment, particularly on the north coast of NSW, and member of our members have a combination of backpackers and Australian working side-by-side,” Mr McCulloch said.
“I have tried to talk to (Tasmanian) senator Jacqui Lambie, and I am still waiting for a call back after leaving messages.
“We feel likes pawns in a game and no one will win if this goes on. It is now time for the cross benchers to meet halfway at 15pc.”
Ausveg CEO Simon Bolles says the industry is kick of being treated as a political football
Mr Bolles says Australian vegetable growers are sick and tired of their industry being treated as a political football.
“Ausveg welcomed the spirit of bipartisanship in which the government offered its compromise deal of 15pc," Mr Bolles said.
"While we are unhappy about the changes to the taxation of superannuation which have already been passed and which would increase the effective rate of that compromise deal to well over 20pc, we hoped to see this debate finish with an internationally competitive rate.”
“We are incredibly disappointed that this has not happened.”
The Australian Macadamia Society (AMS) and Australian Nut Industry Council called for all politicians to support the 15pc rate
Australian Macadamia Society CEO and ANIC chairman Jolyon Burnett the industry acknowledged and appreciated the efforts that resulted in the proposed compromise position of 15pc tax rate.
"We are extremely disappointed by the rejection of this position in the Senate,” he said.
“We are calling on all parties to pass the 15pc tax this week so that our industry can have a resolution which is fair to both workers and growers,” Mr Burnett said.
“It is time to stop playing games with growers’ livelihoods and pass the resolution as soon as possible.”
Culleton defends backpacker tax stance
WA ONE Nation Senator Rod Culleton says he’s standing up for farmers’ and their farm-gate returns by voting with other crossbench Senators and Labor and the Greens for a 10.5 per cent backpacker tax.
But farm groups, including in WA, have broadly panned the political game-playing that has seen the backpacker tax thrown into further doubt.
Dairy Connect says politicians must extract their digits
The game of political brinkmanship playing out over the backpacker tax in federal parliament is symptomatic of a serious disconnection between politicians and primary production businesses in regional Australia, according to Dairy Connect .
No politician can take home any pride in the fact yesterday’s proposed 15 per cent tax compromise failed in the Upper House.
“No doubt, very few members of federal parliament have ever run a small farming business or a business of any sort,” according to chief executive officer, Shaughn Morgan.
“The vast majority have never had to roll out of bed at 4am seven days a week to begin milking or to start harvesting carrots at dawn,” he said.
“They clearly have no idea of the critical seasonality of labour supply and just seem to stare blankly when told repeatedly by industry that: ‘This is serious!’.”
“Our politicians are simply playing power games and ignoring the economic realities of life on the farm,” Mr Morgan said.
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Kim Chappell
As Senior Producer - Digital for ACM's regional titles I assist newsrooms in digital best practice. Before this role, I was the digital journalist with ACM's national team and prior to that, the digital specialist with ACM's Agricultural division. I started as a general rounds journalist with The Land in 2006, moving up to hold the title of chief of staff before switching to digital reporting in 2015.
As Senior Producer - Digital for ACM's regional titles I assist newsrooms in digital best practice. Before this role, I was the digital journalist with ACM's national team and prior to that, the digital specialist with ACM's Agricultural division. I started as a general rounds journalist with The Land in 2006, moving up to hold the title of chief of staff before switching to digital reporting in 2015.
