BUREAUCRATIC bumbling over the controversial backpacker tax is doing more damage than the tax itself.
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This is the message from leaders in the Riverina horticulture industry who fear workers will head to New Zealand instead of Australia due to the financial imposts. Riverina Wine Grape Marketing Board chief executive officer Brian Simpson said the backpacker tax didn’t just hurt agriculture and horticulture but was also detrimental to the broader economy.
“These workers might come and spend two or three months working in the Riverina but they use the money to travel around Australia,” he said. “The money is spent in Australia … it is not as if they are wiring it with Western Union straight into overseas bank accounts,” he said.
“Australia will suffer, we will suffer,” he said.
Mr Simpson said the whole issue had created a lot of confusion and people who were planning to come to Australia to work may have already changed their plans and headed to New Zealand instead to get Southern Hemisphere agricultural work.
“These people don’t plan in cycles of two to three months, they plan in eight or nine month cycles.” Meanwhile, the backpacker tax will spearhead the NSW Farmers horticulture annual general meeting (AGM) and forum on June 2.
NSW Farmers horticulture committee chairman Brett Guthrey said the controversial tax affects the state’s fruit, vegetable and flower growers.
Mr Guthrey - who grows persimmons in the Sydney Basin – said the event would shed some light on challenges the industry is up against.
“The proposed backpacker tax has been a revolving issue; and they rushed it through to start with so that is where the fear is coming from,” Mr Guthrey said.
“Around 40,000 backpackers work on Australian farmers each year so this will have a huge impact on our industry if it goes ahead.”
The forum will prelude the AGM with other guest speakers including independent consultant Tristan Kitchener, who works in the consumer goods sector and provides advice and support along the grocery value chain, and has a particular focus on fresh produce. Director of Horticulture at the NSW Department of Primary Industries, Shane Hetherington, will also present on the research and development capabilities of the horticultural industry in NSW.