David Littleproud
August 16, 2016
The Federal Government will look into issues surrounding the supply and payment of backpacker labour, Member for Maranoa David Littleproud said on Tuesday.
The review will be led by Assistant Minister Luke Hartsuyker and will be carried out by consultants Deloitte Touche Tohmatsu.
Mr Littleproud said he welcomed the initiative.
“Both farmers and tourism operators have expressed strong opinions about the supply and taxation of working holiday visa holders,” Mr Littleproud said.
“The proper application of the long-established tax rate of 32.5 per cent for non-residents has been raised as a potential disincentive for backpackers to take on roles that are not being met by Australian workers.
“We have listened to those concerns.”
Mr Littleproud said the government recognised that the 200,000 plus working holiday makers who come to Australia here each year are a vital source of labour.
“This is why we have deferred the implementation of the so-called backpacker tax for six months, pending the outcome of this review,” he said.
The review will look at four key issues:
- Australia’s international competitiveness for backpackers
- Seasonal and temporary jobs and projected growth in agriculture and tourism
- Support for small businesses around engaging seasonal labour; and
- Protections for vulnerable workers
Mr Littleproud said labour supply was a fundamental issue across the Maranoa electorate, where distance was often a factor in attracting workers – particularly in the agricultural and hospitality industries.
“However, it is equally important that working holiday makers pay a fair level of tax while in Australia. This is a complex issue that goes beyond the tax rate alone,” Mr Littleproud said.
“This review will be based on informed understanding not only of the seasonal and temporary labour challenges facing our industries, but also the challenges facing the Australian economy in a global labour market.
“I encourage anyone with an interest in this important issue to get involved in the process – even those who have already put their views forward.”
Public submissions must be made by Friday, September 2.
For more information or to make a submission, visit agriculture.gov.au/workingholidaymaker.
The outcome of the review is expected to be announced before the end of this year.
