“Without backpackers, there would not be enough workers to pick Australian fruit and fruit growers could go out of business,” says John Dollisson, CEO of Apple and Pear Australia Ltd (APAL). “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. It’s as simple as that.”

Dollisson explained that some of the nation’s apple and pear growers rely nearly 100 per cent on backpackers to pick their fruit and they are already hearing rumours that backpackers are not planning on extending their stay, or simply not coming to Australia now, 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,” says Dollisson.

The Federal Government is now reviewing its proposed ‘backpacker’ tax, which would see working holidaymakers (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 at the rate of 19c for each $1 earned over $18,200.

“The higher tax rate would make it less economical and attractive to work in Australian horticulture,” says Dollisson. “And it may mean backpackers simply choose to exclude Australia from their itinerary.”

According to the Voice of Horticulture, which represents horticultural growers and businesses across Australia, backpackers contribute more than $3.5 billion to the economy each year and around 40,000 find employment on Australian farms,

“We welcome the review into the backpacker tax and thank all those who have played a role in delaying the tax thus far,” says Dollisson. “However, we do need a decision made on the tax as soon as possible because backpackers are making their plans on coming, not coming, or leaving Australia now, and the fruit production season is fast approaching with the onset of spring.”

APAL is working with the Voice of Horticulture to make a submission to represent the concerns and interests of apple and pear growers to the review of the backpacker tax.

“We want to do everything we can to help Minister for Agriculture Barnaby Joyce have all the evidence and information he needs to get a positive outcome for fruit growers as he works to review the tax,” says Dollisson.

“Horticulture is one of the most exciting and under-valued industries in our country. We have jobs. We have export opportunities. And we provide one of the healthiest products out there. But we need workers, and the domestic workforce has not been able to fill that employment gap, so we need to maintain the flow of enthusiastic, energetic and willing overseas workers.”