Backpacker tax expected to hurt agri business says IBISWorld research
IBISWorld says its research indicates the backpacker tax will negatively affect a number of Australian industries, including agribusiness.
As of 1 January 2017, those on working holiday visas have to pay a tax of 15 cents on every dollar up until they earn AUD $37, 000 within a financial year. Once they begin earning over AUD $37, 000 the forging resident tax rates apply. Those on working holiday visas will also have their superannuation funds taxed at 65 per cent from 1 July 2017, up from 28 per cent.
IBISWorld Senior Industry Analyst, Nathan Cloutman, said in January 2013 a price rise for working holiday visas discouraged many overseas travellers from working in Australia.
“A tax on all income earned on working holiday visas will likely discourage backpackers looking to work during their stay in Australia, causing average backpacker visitor nights to decline over the next five years,’ Cloutman said.
Since the 2013 visa price rise, backpacker numbers have increased but IBISWorld says the average length of stay has decreased.
“IBISWorld also anticipates avoidance schemes and cash jobs will become more prevalent under the new rules,” Cloutman said.
Tax likely to affect several ag industries over the next five years
“The bill is likely to affect several agricultural industries over the next five years,” Cloutman said.
“Many fruit and vegetable growing farms rely on cheap labour sourced from overseas backpackers, particularly as many backpackers work on agricultural farms to stay in Australia for an additional year,” he stated.
IBISWorld said that without the backpackers farmers could reduction production which could lead to profitability declines.
“Many farms will likely find it hard to fill job vacancies without a cheap and casual visiting workforce,” IBISWorld concluded.
- Backpacker taxresolved
- Farmers demanding proper review intobackpacker tax
- Agriculture and farming sector not happy withbackpacker tax
A group of Australian dairy farmers are extremely unhappy with the pricing decisions by both Murray ...
Coles supermarkets has announced it will now offer 10 per cent discounts on fruit and vegetables to ...
Woolworths says it is preparing for the rumoured entry of AmazonFresh into Australia in 2017 by alre...
Coca-Cola South Pacific has announced a new summer marketing campaign for its Fuze Tea beverage.
The Senate Committee investigating the impact of regulations over Australia’s alcohol industry has r...
Coca-Cola has launched a new sugar-free version of Coke set to replace Coke Zero.
The 2017 Food and Beverage Award winners have been announced with meat producer Harvey Beef taking h...
The largest commercial kitchen in the southern hemisphere has opened at Melbourne Airport.