Backpacker tax deterring holiday workers from visiting Australia, experts warn

Updated September 01, 2016 15:25:04

Experts in Queensland's tourism and agriculture sectors say uncertainty around the Federal Government's proposed backpacker tax is scaring off the working holiday-makers they need to survive.

Travellers currently working in Queensland have told the ABC they would have steered clear of Australia if the tax had already been in place.

The proposal to tax those on working holiday visas 32 cents in every dollar earned was flagged in this year's budget, but was delayed and is subject to a parliamentary review.

Central Queensland pineapple grower Ben Clifton said he relied on backpacker workers.

"We're concerned that we won't have access to the quality of staff or the level we get from the backpackers," he said. "We can go up to anywhere up 15 to 20 backpackers during the peak harvesting season."

"We've had a lot of success with our backpackers over the years — we usually find if they've got enough get-up-and-go to come out here and be looking for work, they want to do the work, get the money so they can further their travels."

He said they relied on local staff for core business operations and hired backpackers when short-term extra staff were needed.

"We've got an unseasonal flush of fruit on so we've picked up a couple of backpackers from the local backpackers to help us with the harvest," he said.

"I think the fruit and veg industry will lose big time [under the proposed tax]."

Mary Carroll from the Queensland Tourism Industry Council said the uncertainty around the laws was reducing the number of backpackers planning trips to regional areas and it would have a devastating impact on the industry's future.

"We need to remove the uncertainty so it doesn't affect our long-term visitation in a year or so or further out," she said.


British traveller Chris Armstrong, 19, has spent much of this year travelling around Australia and working to fund his adventures.

"If I heard about it before I arrived in the country I wouldn't be here … it's really hard work," he said.

"Every dollar I earn goes back into the economy here – I spend it on food, petrol, my car, housing."

Swaziland visitor Ben Vincent, 27, who is also on a working holiday visa, said he would have travelled to another country if the tax was in place.

"If I had heard coming here and working here I would get nailed for 30 per cent of my wage, I probably would have chosen Canada," Mr Vincent said.

A spokesperson for the Assistant Minister for Agriculture, who is managing the review, said the concerns were being considered.

"The review's terms of reference are focused around four key themes of Australia's international competitiveness for backpackers, seasonal and temporary jobs and projected growth in agriculture and tourism, support for small businesses around engaging seasonal labour, and protections for vulnerable workers," the spokesperson said.

A final decision on the laws is due in October.

Topics: tax, travel-and-tourism, federal-parliament, budget, rockhampton-4700

First posted September 01, 2016 15:23:55