Growcom Chief Advocate, Rachel Mackenzie, said that 15 percent was strongly supported by the key horticultural regions in Queensland, as it is equivalent to the rate currently paid by seasonal workers under the Government’s Seasonal Worker Programme. It also leaves backpackers with enough money in their pockets to spend in regional communities.

“We are very encouraged by today’s announcement and urge the crossbenchers to pass it through the Senate,” Mackenzie said. “Our growers just want a resolution and any politician holding out for a lower rate at this stage will win no friends in Queensland. We cannot risk the 32.5 percent tax rate coming in on 1 January 2017 – the time for political games is well and truly over.”

“I know that many of our members have personally contacted a number of the Queensland Senators to highlight the terrible impact of a 32.5 percent tax rate. A rate of 15 percent is internationally competitive, easy to implement and has already been accepted by overseas workers,” she added.

“It is good to see that the Government has responded to pressure from members of Parliament and industry groups to negotiate a compromise deal which ensures a fair deal for backpackers visiting Australia, and which is the same rate paid by workers under the Seasonal Worker Program,” said AUSVEG CEO, Simon Bolles. “We’re grateful that this debate has finally been put to bed and Australia’s vegetable growers can have certainty going forward about this crucial source of labour.”

“Thanks to the strong ongoing advocacy from a number of industry groups, including AUSVEG, the incoming backpacker tax rate is now comparable with our international competitors for these working holiday makers.”

“Should this compromise position pass both houses, as expected, we would note the importance of industry consultation in all stages of policy development – including at the outset,” Bolles said.

Given the declining trend in backpacker numbers over recent years, both industry groups are expected to continue to monitor the number of working holiday makers coming to Australia under the new tax rate.