Farmers were failed by both sides of politics over the time it took to reach a decision on the backpacker tax according to the NSW farmers federation.
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Registered growers who employ a working holiday maker in Australia on a 417, 462 or bridging visa must now withhold 15 per cent from every dollar earned at the farm workplace up to $37,000. Beyond that figure, the foreign resident tax rate applies.
Chair of NSW Farmers’ Horticulture Committee Brett Guthrey said the decision to set the backpacker tax at 15 percent should have come sooner.
“What we saw from all sides of politics was a failure to put farmers and regional communities first,” he said.
“The deal was struck at five minutes to midnight, leaving farmers lingering to the very end.
“The original proposal of taxing backpackers at 32.5 per cent from the first dollar they earn in Australia would have had disastrous consequences. We’re pleased common sense prevailed in the end.”