Farmers furious at backpacker tax defeat

The federal government’s plan for a 15 per cent rate backpacker tax has been knocked down in the Senate, with the state’s farming body left furious and desperate for a solution.

The coalition’s revised proposal appeared set to pass yesterday, when Treasurer Scott Morrison said a compromise of 15 cents on the dollar, down from an original plan of 32.5 cents, had been reached.

However, Labor wanted to drop the rate to 10.5 cents on the dollar, which received support by the Greens and crossbenchers including Derryn Hinch, David Leyonhjelm and Jacquie Lambie.

Embattled One Nation Senator Rod Culleton went against his party in voting for the amendment.

The bill has now been sent back to the House of Representatives.

WAFarmers chief executive Stephen Brown said the industry was desperate for a solution, with only two sitting days remaining for the year for a solution to be found.

“WAFarmers, alongside the National Farmers’ Federation, stands by our support for the Coalition’s recent 15 per cent compromise on the backpacker tax as we believe it is a fair, reasonable and competitive figure,” he said.

“We are furious that this has not been resolved, when it is so clearly a time-sensitive issue of critical importance to the future of multiple industries.

“The issue has been dragged out for 18 months during which time backpackers have chosen other destinations for their working holidays, leaving producers in the lurch and gaping holes in the tourism and hospitality sectors, plus the greater Australian economy.

“This additional delay demonstrates further contempt for the agricultural industry.”