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THE federal government has launched a review into the working holiday visa with a view to improving their usage in agricultural industries.
The review forms part of the consultation over the introduction of the backpacker tax, and could also seek to reduce the tax rate for non-residents.
Victorian Senator Bridget McKenzie said the review would help the government “meet growing demand for flexible labour”.
“Both farmers and tourism operators have expressed strong opinions about the supply and taxation of working holiday visa holders,” she said.
“The proper application of the long-established tax rate of 32.5 per cent for non-residents has been raised as a potential disincentive for backpackers to take on roles that are not being met by Australian workers.
“We have listened to those concerns.”
The terms of reference include Australia’s “international competitiveness” for backpackers, the projected growth in agriculture and tourism, “seasonal labour” for small businesses. and protections for vulnerable workers.
The Coalition decided to delay the introduction of the backpacker tax for a further six months from July 1 this year in order to facilitate the review.
The backpacker tax would remove the $18,500 tax-free threshold on backpacker earnings, and would introduce the 32.5 per cent tax.
Senator McKenzie said visa workers played an important role in the Australian economy.
“This review will be based on informed understanding not only of the seasonal and temporary labour challenges facing our industries, but also the challenges facing the Australian economy in a global labour market,” she said.
Member for Bendigo Lisa Chesters raised concerns about 417 visa workers being used as organised labour in central Victoria, potentially taking jobs from local people and not being paid correctly.
Three central Victorian meat processing companies took part in a senate inquiry last year, explaining the use and need for visa workers.
The review, to be chaired by agricultural minister Luke Hartsuyker, is accepting public submissions. To get involved, visit agriculture.gov.au/workingholidaymaker