Treat us the same as Australian workers: Port Douglas backpackers
BACKPACKER TAX
THE controversial backpacker tax continues to be a divisive issue with the potential to impact the Douglas Shire.
Malcolm Turnbull announced last week he would reduce the tax rate from 32.5c to 19c for every dollar earned for working holiday makers, drawing praise from some quarters but vocal opposition from others.
Tourism Minister Kate Jones slammed his Government for not axing the backpacker tax altogether, and she has strong support from sections of the agricultural sector in the Far North and backpackers themselves.
“Tinkering at the edges will not fix the problem that is the Turnbull Government’s backpacker tax,” Jones said.
“The tax needs to be scrapped all together. We want backpackers to visit Queensland and spend their money in our regional economies. Regional areas like Rockhampton, Mackay, North Queensland, Far North Queensland rely on tourism jobs.”
Since the backpacker tax was first announced last year, the allure of Australia being an attractive working holiday destination has copped a battering. Working holiday visas have dropped by almost nine per cent in Queensland, forcing Turnbull to backpedal on Treasurer Joe Hockey’s original plan.
The argument against the backpacker tax is tourists spend more, and visit more parts of Australia than domestic residents, and also fill an important void for regional and rural farmers crying out for workers. Port Douglas, with its restaurants, cafe’s and appealing lifestyle may not be as affected, but taxing hospitality workers ‘unfairly’ could change that.
One local waitress from Italy, who preferred to remain anonymous, said backpackers working in Port Douglas should be treated the same as Australians.
“Port Douglas (is) a tourist town and needs a lot of people working in all (the) restaurants and bars,” she said.
“Backpackers should be taxed and treated the same (as Australian citizens) working here, without backpackers I doubt there would be enough people filling the hospitality roles needed to serve (leisure) travellers.”
Jack Sanderson, a 29 year-old living in Port Douglas from North London, believes changing the legislation is unnecessary.
“If it wasn’t broken, why do they need to fix it,” he said.
“Backpackers love this part of Australia, but they also need to earn a fair wage so they can travel to other parts of the country.”
Before the news to change the tax laws, backpackers working in Australia be it on a farm, in a bar or cafe are treated as residents for tax purposes providing they’re from a country partnered with Australia’s Working Holiday Maker scheme and are between 18 and 30. In a time where tourism is booming in Far North Queensland, the backpacker tax is seen as a risky move with other destinations, such as New Zealand and Canada, potentially a more attractive option for working holiday makers.
“Taxing backpackers thousands of dollars is just giving them thousands of reasons not to come to Australia,” Jones said.
“Since the tax was announced we have seen working visa holiday visitor nights down. We know backpackers are worth more than $900 million to the Queensland economy and Mr Turnbull is putting that a risk.
“It doesn’t make sense to slug backpackers with a new tax when their contribution to regional economies is so important.”
Federal Member for Leichhardt, Warren Entsch, said the compromised backpacker tax was ‘fairer’ and he expected ‘good growth’ in working holiday makers to Australia given the age limit has been lifted from 30 to 35, and a visa fee drop of $50.
“The reduced tax rate of 19c in the dollar rather than 32.5c is a much fairer outcome, given that most backpackers wouldn’t reach the threshold of $37,000 a year,” he said.
“I’m glad the government has acted promptly on this to reduce uncertainty in the agriculture and hospitality sectors, as well as reassuring young people who want to come here for the working holiday experience that they won’t be disadvantaged.”
Is the backpacker tax bad for the Douglas Shire? Have your say in the comments below!