Wilting under tax

Assistant Treasurer Kelly O'Dwyer.

SOUTHERN Downs farmers face an uncertain time with the Federal Government announcing they will push back the introduction of the backpacker tax until next year.
NSW Farmers president Derek Schoen believes farmers will face a further six months of uncertainty in sourcing labour following the Federal Government’s announcement on Tuesday to delay the backpacker tax.
“A delay will not fix the problems that the backpacker tax creates for farmers and regional communities,” Mr Schoen said.
“Instead, it creates further uncertainty to farmers trying to plan investment decisions. It’s time to dive in and make the decision to support growing Australia’s farming sector and our regional communities”
The announcement by Assistant Treasurer Kelly O’Dwyer will push back the controversial tax until 1 January 2017, pending the outcome of a further government review.
NSW Farmers and the National Farmers’ Federation (NFF) have strongly opposed an increase in the backpacker tax, and have received almost 48,000 signatures in an online NFF petition opposing the measure.
“We have spoken with farmers in the areas such as the north coast who have serious fears of not being able to fulfil season work requirements for labour intensive crops such as blueberries,” Mr Schoen.
“Horticultural producers in the Central west have also highlighted their reliance on backpackers and their importance to the local economies of towns like Orange.
This backpacker tax will result in a short-term workforce crisis for farmers and will impact on local food production.”
Mr Schoen said the Federal Government needed to develop a tax policy immediately that encouraged working holiday makers to come to Australia and work in rural and regional areas.