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ADF opposes backpacker tax

Australian Dairy Farmers (ADF) has joined the National Farmers Federation (NFF) in calling for the Federal Government to halt the proposed backpacker tax.

As part of the 2015 Federal Budget the government announced that from 1 July 2016 all working holiday makers will be taxed at a rate of 32.5 per cent on
all income.

ADF President Simone Jolliffe said that dairy farmers rely on backpackers for vital on-farm roles which cannot be filled locally or to complement their
existing workforce during peak times.

“The dairy industry is suffering a skilled labour shortage which means that we need overseas workers, such as backpackers, when we cannot find suitable
local staff,” Ms Jolliffe said.

“If this tax is brought in as it currently stands, backpackers may choose to travel to other countries such as New Zealand.”

“This would be damaging to the dairy industry, regional communities and the tourism industry, as well as the broader economy.”

Backpackers currently earn, on average, about $15,000 while in Australia, and may be eligible to claim the tax-free threshold.

“ADF believes it is fair and reasonable for backpackers to pay some tax, but 32.5c is excessive,” Ms Jolliffe said.

“We are supporting NFF’s position that 19 per cent, achieved through deactivation of the tax-free threshold, is fairer to both backpackers and the agricultural
industry which relies on them.”

We encourage everyone who understands the significant contribution backpackers make to agriculture to support NFF’s campaign by signing an online petition.

To join the petition, go to https://www.change.org/p/australian-government-stop-the-backpacker-tax

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