FARMERS have welcomed the comments by the Treasurer Scott Morrison that the government has agreed to a compromise on the backpacker tax of 15 per cent.
National Farmers Federation chief executive officer Tony Mahar said it had been a painful process but farmers wholeheartedly welcomed the announcement that a compromise rate of 15pc has been reached.
Without a compromise the tax rate applied to backpackers would have climbed to 32.5 per cent next year. Farmers say this would have driven working holiday makers away from Australia and threatened farm businesses across the country.
“The NFF back to the Colbeck Review said that a rate between 15-19pc was a fair one that would attract backpackers to the sector and be comparable with rates paid to Australian workers,” Mr Mahar said.
“We now ask that the Senate expedite passage of the relevant legislation to provide the long needed certainty to the sector and allow businesses to start rebuilding backpacker interest in on-farm jobs.
“In time we hope that lessons are learned so that the farm sector is never compromised in this way ever again.”