Abandon Plans to Introduce Backpacker Tax, Urge Australian Farmers & Growers

As per a report, farmers and growers in Australia have renewed their calls to the administration to discard its plans to launch a backpacker tax in 2017. The AUSVEG, the Horticulture organization, reportedly stated that a new report from the Productivity Commission indicates that temporary visas may be a pretty useful answer to labour famines.

AUSVEG opines that the tax which may be started as early as January will not help and it will discourage backpackers who are a much required component of the agricultural manpower when additional manpower is required during the highly crucial and hectic harvest period.

The Commission’s report comprises a proposal for the administration to review the expenses of the planned tax, which would start a 32.5% tax rate on the Working Holiday Makers on all earnings.

At present, the backpackers do not pay any tax on the earnings up to 18,000 dollars. As the average backpacker takes home 13,300 dollars, the majority does not pay tax at the moment. Hence, some detractors reportedly claim that the latest tax regime will lead to a pay cut for the labor force.

Allegedly, at the time of peak seasonal periods, Australian growers depend on the temporary overseas manpower to make up for the domestic labour dearth, and these employees are an effectual method of filling these famines.

The employees--who move to Oz under these schemes, including backpackers--guarantee that the Australian growers can keep feeding Australia. It denotes that strategies which may discourage the labor force from visiting the destination, like the planned backpacker tax, intimidate the output of the industry.

It is also reportedly claimed that the backpackers, who shift to Down Under, are decisive to make sure that the Australian growers may keep feeding the country. It signifies that policies which could dissuade workers from making a trip to the nation, such as the proposed backpacker tax, intimidate the efficiency of the business and its capability to suit the increasing export markets, and also the health of the Australians, on a daily basis.

At present, the regime is reviewing the policy change even as there has been a sign that the rate may be lowered. However, Andrew Wilkie, the Tasmanian Senator, reportedly explained that it as an ill-thought revenue step. He stated that the same will appreciably cut down the availability of the workers for the farmers, lessen the figure of the visitors moving to the nation, and promote tax avoidance.

It is likely to seriously hit some specific regions such as Tasmania since the island has an uneven dependence on seasonal labor force even as the broader state economy is strengthened by tourism. And farmers indicate that the planned introduction is set to seriously affect the harvest season which gets in progress in the month of January in 2017.