National Farmers Federation proposes a program to allow backpackers’ superannuation to fund youth employment programs. With the submission due date only a few weeks today, backpackers’ who are on a working holiday are subject to this proposal. “The NFF’s submission to the Federal Government’s backpacker tax review suggests backpackers pay a flat tax rate of 15 or 19 per cent, as opposed to the 32.5 per cent the Government planned.” (Kotsios, 2016) The proposed plan is argued to allow every citizen or backpacker to pay their fair share in taxes. “Their superannuation would then be paid directly to the Australian Taxation Office to be reinvested in programs supporting job creation in regional and rural Australia.” (Kotsios, 2016)
However, backpackers already pay the 10% GST taxes on everything they purchase within Australia. “NFF estimates show this could deliver an extra $170 million a year.” (Kotsios, 2016) While, this is only a short term solution to the longer plan. “Tourism Minister Richard Colbeck, who headed up the review, said a final proposal had been prepared for Cabinet consideration and a final decision would be made soon.” (Colbeck in Kotsios, 2016) However, this policy would impact upon the number of backpackers wishing to come to Australia to work. And less workers would mean less services and goods being produced, therefore, higher prices. Its basically another limit on competing on price, both globally and domestically. Particular industries that will take toll are agriculture and tourism. Though, its not just decreasing our labour force that is the major problem, its the fact that governments are now getting their hands on our superannuation.
Kotsios, N. (2016). Backpackers’ super to pay for youth employment programs under NFF proposal. The Weekly Times. Retrieved [16/04/16] from <http://www.weeklytimesnow.com.au/agribusiness/backpackers-super-to-pay-for-youth-employment-programs-under-nff-proposal/news-story/21c1fa36a7e334f694fc5248f4e52402>.
Featured image supplied from Unsplash (edited).
Copyright © 2016 Zoë-Marie Beesley
Licensed under a Creative Commons Attribution 4.0 International License.