A GROWER in the heart of the Harcourt apple region says a backpacker tax would hurt apple quality and could spell disaster for producers.
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While cautiously welcoming the Coalition’s decision to delay introducing a 32.5 per cent tax on earnings for a further six months, Jeftomson Orchards Harcourt manager Adrian Clay said the tax should not be introduced at all.
The company hires between 300 and 400 backpackers per year, but Mr Clay feared the tax would make it almost impossible to fill the demand for labour.
“It’s just a concern for me, it’s a concern for everyone in the horticulture industry. Backpackers are vital for producing apples, and getting them to the consumer,” he said.
“People are just not going to want to come here to do the work.
“The problem we face is that locals won’t come, and if they do, they only stay for a week or so. They’re too inconsistent. The work is too hard, but with backpackers you get them for the whole season.”
First slated by former treasurer Joe Hockey, the plan would remove the $18,200 tax-free threshold on backpacker earnings, planned to come into effect on July 1 this year.
But Tuesday’s back flip delayed its introduction by six months, pending a review.
A number of Coalition MPs had argued against the tax, which was predicted to raise $540 million by 2020.
Member for Bendigo Lisa Chesters said the change of plan showed the Coalition did not “understand the real issues with the (417) backpacker visa”.
“The misuse of temporary work visas are having a devastating effect on local workers and are creating a cheap imported workforce,” she said.
“With youth unemployment in the region reaching above 18%, it is not acceptable for local companies to be looking to labour hire companies who supply 100 per cent overseas temporary work visa workers to fill vacancies.
“Not only have Liberals failed to stop the misuse of the backpacker visa, they have also failed to stop the exploitation of many of these temporary workers.”
A number of central Victoria meat processing companies participated in a Senate Inquiry into the visa worker system in 2015.
Three reviews have already been held into the backpacker tax.
Liberal candidate for Bendigo Megan Purcell said she was pleased with the decision, and looked forward to the outcome of a review.
“The government has listened to issues raised by stakeholders about workforce challenges faced by industries in regional and rural areas, and how the taxation arrangements for working holiday visa holders potentially affect industries such as agriculture and tourism,” she said.
“I am very pleased the government has announced today it will defer any changes to the backpacker tax for six months to ensure all stakeholders can be consulted and participate in this review.”