Winemakers Face Uncertainty as Backpacker Tax Bill is Delayed in Senate

It seemed a win for winemakers when the proposed ‘backpacker tax’ rate was slashed from 32.5 per cent to 19 per cent last month. The rate was set to apply to Working Holiday and Work and Holiday visa holders as of 1 January 2017.

However, a statement from the Office of the Hon Barnaby Joyce MP has revealed that the passage of the Bill to resolve the backpacker tax has been held up in the Senate. It states that Labor still has the 32.5 per cent backpacker tax rate in its official election costings and still stands as its official policy. This places the resolution on hold, as well as the financial future of the farmers who rely on the backpacker workforce.

With the peak tourism and harvest season ahead, farmers and winemakers look to backpackers to help harvest their crops across all regions through Working Holiday Maker visa applications. Last year alone saw over 200,000 Working Holiday Makers visas granted.

Mr Joyce is pushing for resolve, stating, “The Coalition Government is calling on the Opposition to get behind the widely supported cuts to the proposed backpacker tax rate from 32.5 per cent to 19 per cent, to provide much needed certainty for stakeholders.

“Over the last few months the Coalition has consulted and worked with the agricultural and tourism sectors to bring this issue to a satisfactory resolution. What was Labor doing all that time, it was simply 100 days of inaction.

“More than 1700 stakeholders contributed to the review through written submissions and face to face consultations. They made it clear that an early resolution to the tax rate issue was needed.

“The Coalition Government listened and is providing certainty to stakeholders for the upcoming harvest and tourism seasons, all we need now is for common sense to prevail in the minds of the Labor Party. I am calling on anyone who feels as strongly as I do about this issue to contact their local Labor member to get this vital legislation passed.”

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