Labor may support further backpacker tax cuts

LABOR may vote in the Senate for the backpacker tax to be reduced further from the 19 per cent proposed by the Turnbull government.

Joel Fitzgibbon says the proposed 19 per cent tax rate would still drive away backpackers.

LABOR may vote in the Senate for the backpacker tax to be reduced further from the 19 per cent proposed by the Turnbull government.

Labor’s Agriculture spokesman Joel Fitzgibbon said Treasury modelling had demonstrated that the 19 per cent tax was just as bad as the 32.5 per cent tax.

“Nineteen per cent will continue to drive backpackers away from this country and that is bad news for those in our agriculture sector and of course those in our tourism sector,” he said.

“This government is progressing this tax notwithstanding the fact it knows it’s going to damage farming and the tourism sectors.”

Mr Fitzgibbon said that Labor would be asking Treasury to declare what tax rate would restore Australia’s international competitiveness in the battle to attract backpacker labour to pick fruit crops.

A Senate committee is looking at the issue and will report to the Senate on November 7.

Prime Minister Malcolm Turnbull said the 19 per cent tax rate would make Australia more competitive with other backpacker destinations.

A spokeswoman for Agriculture Minister Barnaby Joyce said a Deloitte report for the Government had shown that a 19 per cent tax did restore competitiveness.

Originally published as Labor may support further backpacker tax cuts