Australian Dairy Farmers (ADF) has today welcomed the government’s announcement to drop the proposed 32.5 per cent tax on backpackers.
The announcement made by the Federal Government not to proceed with their proposed tax comes after extensive lobbying by ADF and other stakeholders.
“We have consistently said that we believe it is reasonable for backpackers to pay some tax, but the government’s proposal was too high,” ADF Acting President David Basham said.
“We are happy with the outcome of today’s announcement and that the government listened to industry’s concerns to ensure dairy farmers can operate productive and profitable businesses.
“Dairy farmers and the broader dairy industry rely on backpackers for vital on-farm and off-farm roles which cannot be filled locally and complement our existing workforce during peak times,” Mr Basham said.
The decision to reduce the proposed tax rate from 32.5 per cent to 19 per cent tax maintains Australia’s status as one of the most competitive destinations for working holiday makers, while ensuring they pay a fair level of tax.
“We look forward to seeing more information on the other details contained in this proposal including the Working Holiday Visa application fee, superannuation payments, the proposed marketing campaign, and the ability for workers to be employed by one employer for up to 12 months at two separate locations.”
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