NT farmers left hanging over unresolved backpacker tax issue

TERRITORY farmers were left disappointed the issue of the backpacker tax was left unresolved in the federal budget last night

Backpackers like Charlotte Scanlan, 24, Mik McGuckin, 25, and Nick Jansen, 23, do not want to be taxed 32.5 per cent. PICTURE: Patrina Malone

TERRITORY farmers were left disappointed the issue of the backpacker tax was left unresolved in the federal budget last night.

NT Farmers chief executive Shenal Basnayake said some farmers would not plant crops and there was a real risk mangoes would be wasted.

At issue is a 32.5 per cent tax on every dollar earned by backpackers who work. The tourism, hospitality and agriculture sectors are forecast to be hardest hit. The tax changes come into effect on July 1.

All three sectors have been lobbying the Turnbull Government and the Labor Opposition to reduce the rate.

“My biggest concern is for those farmers who have invested heavily upfront and are looking at security of their labour to be able to harvest,” Mr Basnayake said last night.

“Some farmers may not actually plant their crops and they were deciding to hold off on planting until the matter was resolved.

“Our farmers will have to make significant upfront decisions on whether they go ahead with any expansion plans, any plans to continue planting. Then on top of that all those people from the mango industry have their trees in the ground and will start producing.

“If we don’t have enough workers there will be a huge amount of wastage.”

Mr Basnayake said this would now become a substantial election issue.

“We don’t know if this was a call of the Treasurer alone or the entire Cabinet. The proposal we put forward went to the entire Cabinet. The whole of Cabinet needs to be held to account,” he said.

The first of the mangoes will start to be harvested from July. In the Territory, around 3000 backpackers and seasonal workers are employed.

Originally published as NT farmers left hanging over unresolved backpacker tax issue