Senator Jacqui Lambie aims for zero tax on backpackers

TASMANIAN Senator Jacqui Lambie is going to have two bites of the cherry in an attempt to get the Federal Government’s backpacker tax reduced from the present level of 19 per cent.

Tasmanian Senator Jacqui Lambie is pushing for no tax to be charged to backpackers. Picture: NICOLE GARMSTON

TASMANIAN Senator Jacqui Lambie is going to have two bites of the cherry in an attempt to get the Federal Government’s backpacker tax reduced from the present level of 19 per cent.

Senator Lambie will move for a “0 per cent tax rate” in the Senate next week to abolish it altogether and, if that is unsuccessful, will move for a 10.5 per cent rate. Her move comes after two recent Senate inquiries heard widespread opposition to the 19 per cent level of the tax passed through the House of Representatives.

Tasmanian cherry grower Tim Reid has been vocal in his condemnation of the 19 per cent, saying it is uncompetitive with backpacker destinations such as Canada and New Zealand.

On Wednesday, Primary Employers Tasmania (PET) backed away from the Government’s level, saying it now supported a tax of 13 per cent.

PET represents 603 Tasmanian employers, including 488 in agriculture, 97 in horticulture and 18 in viticulture.

The imbroglio comes as Tasmanian fruitgrowers and the tourism industry fear that the increased tax is deterring overseas backpackers and resulting in a shortage of seasonal harvesting labour in the cherry, apple, pear and other horticulture industries.

Labor is waiting for the report from a Senate Committee before it decides on what level it will support. The the Greens favour no tax.

Originally published as Senator Jacqui Lambie aims for zero tax on backpackers