Budget 2020: More support for farms’ backpacker work force

Young Australians who earn at least $15,000 in the next year picking fruit or working in agriculture will find it easier to access taxpayer-funded welfare payments.

Stonefruit grower Angus Ferrier, with backpacker workers Eleanor Smith 24 from the UK and her partner Kilian Hoeckman 26 from Belgium. Picture: Lyndon Mechielsen

Young Australians who earn at least $15,000 in the next year picking fruit or working in agriculture will find it easier to access taxpayer-funded welfare payments under a $16.3m budget measure designed to help stem a critical labour shortfall.

The Morrison government will also offer $17.4m over the next two financial years to assist Australians relocating for employment opportunities, including to regional areas to take up short-term agricultural work for at least six weeks.

In an incentive that will be met with scepticism from farmers, Australians will be able to qualify as an “independent” to start receiving Youth Allowance and ABSTUDY payments if ­between November 30 and ­December next year they are paid $15,000 working on farms or more broadly in agriculture.

A previous Coalition government trial program letting Newstart recipients earn $5000 annually for horticulture work without losing their taxpayer-funded payment was a flop.

There were 7600 places but fewer than 500 people signed up.

With the horticulture labour shortage expected to be up to 26,000 people by March, the government announced another $9m for the seasonal worker program over the next three years to protect Pacific and East Timor people in farm jobs.

The measure is to ensure farmers “have access to the workforce they need”.

Seasonal workers and Pacific Islanders employed under the Pacific Labour scheme can also have visas extended for up to 12 months.

Backpackers on working holiday visas will be able to work more than six months for the one employer if they are employed in the agricultural or food processing industries.

An EY report last week for the first time put a number on the horticulture industry’s labour shortfall during the pandemic, finding growers expected to fill just six out of 10 short-term roles in the next six to 12 months.