Growcom’s Chief Advocate Rachel Mackenzie, Growcom Board Director, Mareeba District Fruit & Vegetable Growers Chairman Joe Moro and Queensland Farmers’ Federation CEO Travis Tobin presented a submission to the Senate Review into Working Holiday Visas this fortnight.

They expressed their deep frustration at the revelations that there has been no economic modelling on the impact of this issue on their industry or the tourism sector, adding that it is extremely difficult for them to support a particular rate if there is no information on how this will impact the sector.

Growcom says that it has taken it on trust that the 19 per cent proposed in the legislation is competitive and will not have an adverse impact on backpacker numbers, however, if this is not the case then a lower number must be determined immediately. The bottom line is that a 32.5 per cent rate will have a devastating impact if it comes into place in January.

The group reported that it argued before the Senate Review – yet again – that a 32.5 per cent tax on backpackers is too high and would discourage the backpacker labour force from coming to Australia. They added that the industry is supportive of working holiday-makers paying some form of tax, so long as it is set at a level which is competitive with other countries and enables working holiday makers to still have enough money to spend here to support regional communities.

Also raised were concerns about the 95 per cent tax rate on backpacker superannuation due to come into place in July 2017, claiming that, once again, there seems to be no clarity as to how many backpackers claim their Super or how much of an incentive it is to them working here. The need is to understand the impact of this decision on the horticulture sector should be properly modelled before any decision is made.

Growcom says it has now heard from all sides of parliament and government agencies on this issue, and believes it is time for the vote on the Bill to overturn the 32.5 per cent and give growers and their workforce certainty.

Reports are that the Senate Committee will hand down its findings shortly, but Labor and Senator for Tasmania, Jacqui Lambie, has both put up Bills proposing a 10.5 per cent rate which means it is unlikely that the proposed 19 per cent rate will get through the Senate.

Growcom suggests that it is also unlikely that the Government will support the 10.5 per cent. The upshot is that with two sitting weeks before the end of the year the industry runs the real risk of the 32.5 per cent coming in on 1 January.

The industry body urges growers to ring their local members and demand they negotiate a compromise position.

As for the future, Growcom says that the Federal Government must commit to better consultation with our sector and economic modelling before they make decisions that compromise the sector’s profitability. If a poor decision has been made, they must take the advice of industry and act in a timely manner to resolve it.