THE Labor party is copping stick from numerous angles after it refused to immediately pass the new version of the backpacker tax.
Last night the Labor caucus decided to delay the passage of the bills that would have resolved the working holiday maker tax which the federal government recently revised to be set at 19 per cent instead of the 32.5pc proposed earlier this year.
Labor has referred the bills to a Senate economics committee for review. It will finalise its position on November 7, following the committee's report.
Labor shadow minister for agriculture, Joel Fitzgibbon, said the referral is standard process for most legislation.
But one of the first to burr up about the delay was the National Farmers Federation (NFF) which said Labor had "again failed to reveal its position on the tax".
NFF president, Brent Finlay, said the agriculture sector was outraged at the decision to unreasonably prolong uncertainty and distress currently felt by farmers across Australia.
“As we have said time and time again, the backpacker tax threatens to divert away more than a quarter of the agricultural workforce. It needs to be fixed, and it needs to be fixed now,” Mr Finlay said.
“Our submission to the Working Holiday Maker review, which Labor has, comprehensively outlines how the backpacker tax will damage the agriculture sector and how it affects our competitiveness in global markets.
“Farmers can’t wait until the end of the year, or even next year, for a resolution of the issue. Every day of delay means fewer working holiday makers in rural Australia and fewer crops in the ground."
Mr Fitzgibbon accused the government of rushing the bills through parliament.
"Now the treasurer and the government has finally decided how it wants to backflip, it’s expecting the Parliament to pass the legislative package this week," Mr Fitzgibbon said.
"Labor will give no truck to that approach. We saw when the Government announced the original backpacker tax proposal that it completely botched the details and the consultation.
"That cannot be allowed to occur again."
Deputy Prime Minister and agriculture minister, Barnaby Joyce, called on the Opposition to get behind the cuts to the proposed backpacker tax rate to provide certainty for stakeholders.
He said Labor still had a 32.5pc backpacker tax rate in its official election costings; and still standing as its official policy.
“Over the last few months the Coalition has consulted and worked with the agricultural and tourism sectors to bring this issue to a satisfactory resolution. What was Labor doing all that time? It was simply 100 days of inaction,” Mr Joyce said.
“We also understand that as the peak tourism and harvest season is fast approaching, a quick and fair resolution to restore certainty to the industry is vital."
Ag industries react
COTTON Australia general manager, Michael Murray, said now is the time to implement the backpacker tax fix, before confidence amongst overseas working holiday makers erodes any further than it already has.
"After months and months of debate, we were pleased the Government finally listened to farmers and tourism operators and reduced the tax rate for backpackers, making us more competitive against countries like New Zealand and Canada, and giving growers some confidence they can source labour at critical periods in the season," Mr Murray said.
"If this legislation is not passed swiftly, it can only do even more damage to cotton growers, other farmers and our tourism industry."
WAFarmers condemned the Labor government's delay on passing the bills.
WAFarmers CEO Stephen Brown said farming groups had campaigned tirelessly to highlight how the introduction of the backpacker tax would not only harm the agricultural industry, but also tourism and rural and regional businesses.
“To have this hard work thrown back in our faces by the ALP is an insult, especially when it comes so soon after the Federal Government’s announcement that they would back down on their original proposal," Mr Brown said.
“Already backpackers have been changing their travel plans in favour of other countries, and we can only see this trend continuing if the government doesn’t get their act together and pass these bills as quickly as possible."
NSW Nationals member for Calare Andrew Gee expressed dismay at Labor’s move.
“Our local orchardists have made it very clear that the tax hike on backpackers has to go before the harvest and I’m shocked that Labor is trying to either delay the repeal or kill it through a Senate inquiry,” Mr Gee said.
“There’s nothing left to talk about or inquire into. The tax has to go or we risk leaving fruit to rot on trees.
“It’s an issue not only facing our region, but also the whole nation.
“The Labor party needs to put the national interest above its desire to play partisan politics on this issue.”
NSW Farmers Molong branch chairman Floyd Legge said growers have had more trouble each year getting local workers to pick local fruit and are now heavily reliant on backpackers to get the harvest in.
“If we tax them at such a high rate they simply won’t come to Australia to work,” he said.
“We need to get this tax axed as a matter of urgency and no political party should be hurting our farmers by delaying that from happening.”
Calare orchardist, Guy Gaeta said the repeal of the backpacker tax was a vital issue for local fruit growers and nobody who was serious about supporting farmers should stand in its way.
Politicians trade blows
TASMANIAN Labor member for Lyons, Bryan Mitchell, defended his party’s decision to refer the bills.
While Mr Mitchell acknowledged a frustrating year for the agriculture sector, he said he is not yet satisfied there is enough proof the new rate will be effective.
“If we put in 19pc with no evidence that it will work, then that’s what it stays at and we’re stuck with it,” he said.
“They’ve had three months since the election to get it right, and now they’re squealing because Labor wants to take an extra couple of weeks to get this sorted out.”
Primary Employers Tasmania president Glynn Williams, who advocated for the tax to be abolished before a compromise was reached, said the delay comes “as a great disappointment.”
“For the Labor Party to first be criticising the government for not making a decision and then to refer it to a further review, which leads to uncertainty about the tax rate itself, has caused a bit of harm because it’s creating a deterrent effect,” he said.
Mr Williams raised concerns about the coming picking season.
“We were keen to see that uncertainty dealt with and we thought it had been dealt with," he said.
His views were supported by Liberal Senator Jonathon Duniam, who labelled the move “political point-scoring.”
“It is bloody mindedness for Brian Mitchell and Justine Keay and the other Labor politicians to think this is a good idea, when for so long now industry have been crying out for certainty,” he said.
“I hope that Labor see the light and they will actually support the bill rather than sending it off to committee for another talk-fest, when certainty is all that’s needed.”
Mr Fitzgibbon said the Senate economics committee would provide genuine and transparent consultation.
"The Government has limped along for a year and a half creating further uncertainty for key sectors like tourism and agriculture, which has already seen a clear negative economic impact," he said.
"Labor will finalise its position once we’ve heard from effected stakeholders and explore how the Government’s proposed new regime compares globally."
Mr Joyce said there had already been months and months of consultation with industry to resolve the issue in the best interests of our farmers and the economy.
The initial independent review in August of the proposed 32.5pc backpacker tax, attracted some 1700 submissions.