Yesterday the Federal Government acknowledged its own proposed foreign backpacker tax could damage Australian agriculture and tourism industries.
This is a major shift in the Federal Government’s mindset and let’s hope, a win for our tourism and hospitality industry.
Tasmania’s own Federal Tourism Minister Senator Richard Colbeck, has listened to the THA who has in conjunction with the National AHA office, made it known that any increase in taxation on backpacker’s earnings would have a detrimental effect on our industry.
“Legitimate concerns have been raised about the impact the so called backpacker tax would have on our global competitiveness as a backpacker destination,” Senator Colbeck said.
“The backpacker workforce is vital to two of our key super growth sectors — agriculture and tourism.
“We will work to prepare a revenue neutral proposal in consultation with Employment, Immigration, Agriculture and Industry Ministers that can be presented to the Treasurer for consideration by Cabinet in relation to the measure.”
He said backpackers would still be taxed but the committee would look at other measures to ensure there was no negative impact.
We will keep working on this issue for a positive outcome.