Queensland Parliament calls for abolition of backpacker tax

The Queensland Parliament is calling on the Turnbull Government to abolish the backpacker tax before it does more harm to the state’s agricultural and tourism industries.

Agriculture Minister Leanne Donaldson said the message to the Prime Minister and Federal Treasurer from Queensland was clear.

“Today the Queensland Parliament has spoken out to protect the state’s farmers who rely on working holiday visa holders to harvest, process and package their produce.

“The Parliament has also voted to support our tourism and hospitality operators who will be severely impacted if this ill-considered tax-raising measure goes ahead from 1 July.

“Fruit growers and horticulturists are telling me they fear produce will rot in the fields because there won’t be anyone to harvest it,” the Minister said.

Minister Donaldson’s motion noted working holiday visa holders would no longer receive a tax-free threshold after 1 July, when they would be taxed on every dollar earnt at the rate of 32.5c.

The motion also noted that the tax would deter holidaymakers from visiting Australia.

“Rural and regional economies will be damaged by this tax,” Minister Donaldson said.

“It is already having an impact because international backpackers are well aware that the changes are imminent and they are heading to other countries, like New Zealand and Canada instead.

“Hundreds of thousands of backpackers come to Queensland each year and spend approximately $900 million a year.

“The wages they earn helping our farmers to harvest their produce is spent in hostels and hotels, in bars and restaurants, in cafes and bakeries and shops in small towns throughout our state.

“There is widespread despair in those communities that backpackers will simply stop coming. The money they spend to support those communities will be lost.

“We simply can’t afford for that to happen.

“The Palaszczuk Government has been calling for the tax to be abolished for more than a year and now the Queensland Parliament has endorsed that call.”

Tourism Minister Kate Jones said the backpacker tax would hit Queensland hardest.

“The Federal Government already slug backpackers with a $440 working visa fee, now they want tax them more than 30 cents in the dollar from the very first dollar they earn in Australia,” Ms Jones said.

 “We know that our state will be hit hardest by this tax with more than half of the 600,000 backpackers who come to Australia working and holidaying in Queensland.

“We should be making it easier, not harder for people to holiday and work in Queensland and I call on Mr Turnbull to abandon this tax once and for all.”

ENDS

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