The head of Australia’s peak industry body for pipfruit has urged the country’s federal government to scrap all plans for a proposed backpacker tax.
Apple and Pear Australia (APAL) chief executive John Dollisson said dropping the tax from the government’s agenda would ensure there are enough workers to pick local fruit.
“Without backpackers, there would not be enough workers to pick Australian fruit and fruit growers could go out of business,” Dollisson explained. “In certain fruit-growing regions even a 10 per cent drop in the number of backpackers could effectively stop harvesting. This would mean the supply of the healthiest, safest and best quality fruit – Australian-grown fruit – could dry up.”
The federal government is now reviewing the proposed tax, which would see working holiday makers (backpackers) taxed at the rate of 32.5 per cent from their first dollar earned. Currently they are taxed at the same rate as residents, A$0.19 for every A$1 earned over A$18,200.
Dollisson explained that some of the nation’s apple and pear growers rely nearly 100 per cent on backpackers to pick their fruit. He said growers were already hearing rumours that backpackers are not planning on extending their stay, or simply not coming to Australia, because of the proposed higher tax rate they would face.
“It’s really important to remember that backpackers already pay tax – the same amount of tax that a local resident would pay on the same income. So why should we treat them any less fairly – especially when we want to encourage them to come to Australia,” Dollisson added.
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