Growers hail tax reprieve
Relieved" and "very happy" was the response of district orchardist Brad Fankhauser to the announcement by the Federal Government that it was axing a proposed increase in the tax overseas working holiday makers pay on their earnings.
A proposed in-crease to the "backpacker tax" to 32.5 cents in every dollar earned was dropped last week by Federal Treasurer Scott Morrison as a key element of a package of measures relating to overseas backpackers.
The tax will remain at 19c in the dollar.
Mr Fankhauser employs up to 30 backpackers at the family's Drouin orchard during the peak February-May harvest period, about twothirds
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of them coming from overseas.
Agricultural, horticultural and tourism industries are heavily dependent on the labour of overseas holiday makers at peak seasonal periods.
The only criticism Mr Fankhauser had of the government's decision was that it had taken too long.
He said he also welcomed the increase in the age of eligible visa holders that could be employed under the overseas backpacker conditions from 30 to 35.
Other key other elements of the package announced by Mr Morrison were an extension of the time backpackers can work for the same employer from six to 12 months and a reduction in the visa application charge by $50 to $390.
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While industry bodies widely welcomed the decision on the tax level and several other initiatives the Tourism and Transport Forum Australia was highly critical of one of the decisions to compensate for the reduction of government revenue.
A $5 increase in the Passenger Movement Charge - a fee for people leaving Australia for overseas - from $55 to $60 was described as "outrageous" by the forum chief executive officer Mary Osmond.
"The government continues to view the tourism industry as a cash cow," she said, adding that the industry had been blindsided by the decision on the PMC that had at not been flagged in any discussions.
The government had announced the increase in the "backpacker tax" in its 2015 budget proposing to introduce it from July 1 this year.
But reaction from industry groups and individual employers led to two reviews and last week's announcement not to proceed with the tax increase.
Mr Fankhauser said the pressure applied by industry groups and individuals during the Federal election campaign earlier this year had helped bring attention to the importance of working holiday makers.
Even locally few people had previously realised how reliant many district agricultural and horticultural businesses were on the workers, Mr Fankhauser added.
The National Farmers Federation said the overseas workers were worth $3.5 billion to the Australian economy each year.
Mr Fankhauser said word of mouth and social media, especially Facebook where many backpackers rate employers they've worked for, lead to direct inquiries by 'phone or to the company's website, he said.