LOCALS have contributed to 27,000 signatures for an online petition calling on the Federal Government not to raise taxes on backpackers, saying changes to current tax rules will negatively impact on the local economy.
The Federal Government has planned to change the tax regime for backpackers in the upcoming federal budget in May, which would increase a backpacker’s payable tax to 32.5 per cent of their earnings as of July 1.
Backpackers holding a working holiday visa have not been required to pay tax on their earnings since July 1, 2012.
A National Farmers’ Federation online petition opposing the tax increase has so far attracted more than 27,000 signatures, due to concerns the tax will dissuade seasonal workers from staying in the country to work for food producers.
Peter Holloway, from Woorinen North producer V F Siciliano and Sons, said the business signed the petition because around 60 per cent of the employees at its packing shed were backpackers.
For more on this story, grab a copy of Wednesday’s Guardian (February 24).
