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Farmers furious at Labor on backpacker tax

A Senate inquiry will inform Labor's position on the government's backpacker tax amendments - but farmers aren't happy with the delay.

A backpacker in Melbourne
File image Source: AAP

2 min read

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Source: AAP


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Farmers are furious at the federal opposition for delaying the passage of amended new taxes on backpackers.

Labor has yet to finalise its position on the tax on working holiday makers despite expectations the bill will be introduced to federal parliament soon.

The government plans to tax backpackers 19 cents from the first dollar they earn from next year, rather than the 32.5 per cent rate originally flagged in the 2014 budget.

The Labor caucus has voted to allow legislation to go through the lower house but wants it sent off to a Senate inquiry to report on November 7.

The opposition said it would finalise its position once affected stakeholders have been heard from and a global comparison of the tax is undertaken.

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The Australian Farmers Federation isn't impressed, saying that will only prolong the uncertainty and distress of farmers who want a resolution soon.

President Brent Finlay says the tax threatens to divert away more than a quarter of the agricultural workforce.

Farmers couldn't wait any longer.

"After refusing to declare its hand on the backpacker tax all year, Labor decides to intervene at the eleventh hour to block a solution that would see an extra $2000 in every backpacker's pocket," he said in a statement.

"This is unacceptable and we call on Labor to respect all the decent hardworking Australian farmers who feed and clothe us every day by passing the backpacker tax bills in the parliament."

Labor's agriculture spokesman Joel Fitzgibbon said it was about ensuring the process wasn't rushed through.

"We saw when the government announced the original backpacker tax proposal that it completely botched the details and the consultation," he said in a statement.

"That cannot be allowed to occur again."


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