National Farmers’ Federation calls for changes to PALM scheme

The number of short-term Pacific workers has fallen “well beyond its peak”, as the National Farmers Federation outlines recommendations to improve the PALM scheme.

Incentivising building on-farm housing and simplifying planning regulations will help more farmers employ Pacific workers, the National Farmers’ Federation says.

The Pacific Australia Labour Mobility scheme deed and guidelines from 2023 are up for review, and the NFF has highlighted four priority areas for reform: accommodation, pay and conditions, welfare and wellbeing, and transport and deductions.

NFF interim chief executive Su McCluskey said the scheme was essential for Australia’s seasonal worker mix, but that it had been “saddled with layers of complex obligations that make it harder than it needs to be”.

“Short-term PALM numbers in agriculture have fallen well below their peak, which tells us the scheme in its current form is too hard for many employers to use,” Ms McCluskey said.

Su McCluskey. Picture: Rachael Lenehan

The number of PALM workers in Australia at any one time has remained around the 30,000 mark for the past few years, but the balance between short-term and long-term workers has shifted.

In April 2022, short-term PALM workers made up 73 per cent of the PALM scheme workforce. Since February 2024, that number has been sitting below 50 per cent.

Some of the “complex obligations” outlined in its submission include farmers being subject to fringe benefits tax when offering accommodation, ensuring ongoing pay parity over the duration of a placement, the minimum net pay guarantee, and the process in place to discuss the welfare of workers.

“We need a system that makes it easier for farmers to mobilise their workforce while still ensuring workers are well treated. That balance is absolutely possible, but PALM as it stands doesn’t deliver it,” Ms McCluskey said.

And while noting it was not in the scope of the review, the NFF submission also said the 30-hour minimum guarantee per week averaged out over four-weeks, should be returned to 30 hours per week averaged out over the duration of a placement.