27 Sept 2016
The Queensland Farmers’ Federation (QFF) and the Queensland Tourism Industry Council (QTIC) today have welcomed the Federal Government’s amendment to the proposed 32.5 per cent tax on working holiday makers, to 19 per cent from their first dollar earned.
The Government will also extend the eligibility age of the working holiday maker scheme from 30 to 35 years and implement a reduction to the application charge for working holiday maker visas by $50 (from $440 to $390).
Ten million has been allocated to the ATO and the Fair Work Ombudsman to establish an employer register and assist with ongoing compliance initiatives to address workplace exploitation of working holiday makers, and a further $10 million will be given to Tourism Australia to promote working holiday makers to come to Australia through a global youth targeted advertising campaign.
The Queensland agriculture and tourism sectors strongly urged the Federal Government to not impose an unfair tax rate on the important backpacker labour market.
QFF President Stuart Armitage said that he was relieved that the backpacker tax had been revised as it restored the certainty farmers needed to plant and harvest their crops.
“QFF and its industry members welcome the revised 19 per cent tax rate as it is consistent with what we and others in the agricultural sector have been calling for.”
“We welcome the lower tax rate as it will undoubtedly remove the confusion and uncertainly for backpackers and those farmers who need access to their labour.”
“On behalf of the Queensland agricultural sector I would like to thank the broader community for joining our campaign against the uncompetitive backpacker tax and for the members of parliament that spoke up on behalf of their constituencies.”
“QFF commend the government for listening to regional Australia on this issue by ending the uncertainty already impacting Queensland regional areas that rely on backpackers to visit, holiday and work.”
QTIC CEO Daniel Gschwind welcomed the government’s modifications to the proposal but stressed that the Australian tourism industry is still challenged to remain competitive in the backpacker market.
“QTIC welcome the government’s review and modifications to the proposal, amendments which represent an improvement from the previous proposal. QTIC also welcomes the modest reduction to the application fee for working holiday maker visas, and for the expansion of the scheme from applicants aged up to 30 to now 35 years.”
“However, the now proposed tax rate which applies from the first dollar earned still positions Australia as uncompetitive compared to Canada, New Zealand and the United Kingdom for working holiday makers. Also disappointing was the simultaneous announcement that the Government seeks to increase its consolidated revenue by adding a further $5 to the passenger movement charge, bringing it to $60 per passenger.”
“QTIC thanks its membership and industry partners for their input and feedback on the Backpacker Tax proposal, and similarly the agricultural sector for its shared advocacy support.”
The Queensland Farmers’ Federation is the united voice of intensive agriculture in Queensland. It is a federation that represents the interests of 17 of Queensland’s peak rural industry organisations, which in turn collectively represent more than 13,000 primary producers across Queensland.
The Queensland Tourism Industry Council (QTIC) is the state peak body for tourism in Queensland. QTIC is a private sector, membership-based tourism industry organisation. All of Queensland’s 13 Regional Tourism Organisations (RTOs) are members of QTIC, as are 20 industry sector associations and in excess of 3,000 regional members, operating in all sectors of the tourism industry.
The post Queensland Agriculture & Tourism welcome amendment to Backpacker Tax appeared first on Queensland Farmers' Federation.