Killing the Goose !

Australia is the preferred destination for young backpackers from many world countries who enjoy a summer holiday here and cover the cost by working in the agricultural industry and helping to harvest the crops.   Most enter this country under either the 417 or the 462 working holiday visa scheme.

Our agricultural industry makes it quite clear that without this willing labour there would be a serious shortfall in both meeting overseas orders for Australian produce and supplying the fruit and vegetable shops in our cities.  They mostly spend the money they earn and as a result this backpacker flow contributes an estimated  $ 3.5 billion to the national economy.

When Tony Abbott was prime minister there was a proposal to disallow the usual  minimum earnings before tax applies and tax backpackers from the very first dollar they earn.  This tax rate was originally proposed to be at the draconian rate of thirty-two cents in the dollar.  That produced concern from backpackers in other countries and despair from Australian agriculture that tax would see Australia drop off the backpacker circuit - and our harvest would rot on the trees.

As a result, this tax rate was cut back to fifteen cents in the dollar, but it is now applied without the concession of a minimum level of earnings escaping tax before the tax rate applies, as is the system with domestic Australian taxpayers.

Now foreign backpackers have launched legal action against this impost.  It is claimed that the tax  contravenes the anti discrimination clauses in treaties Australia has signed with Britain, the United States, Germany, Finland, Chili, Japan, Norway and Turkey.   The legal action seeks " declaratory relief " for citizens of those countries.   If successful, it would render them exempt from the tax.

Many people see this tax anomaly imposed on backpackers as a knee jerk reaction when our immigration levels were attracting political attention.  Some suggested that backpackers were taking jobs that would be better served by our unemployed young people, completely ignoring the fact that our unemployed reject this type of work.

We actually have people drawing the dole in areas where fruit picking jobs are going begging, and despite demands that the unemployed journey to where work is available we seem to lack the will to make that happen.  Strangely, it is young Australian backpackers that often bring in the crops in the northern hemisphere when they take working holidays to see the world.

This move to impose what is a confiscatory tax on backpackers which is completely out of kilter with the tax ordinary Australians pay is simply a bad idea.  Unfortunately we are already into this summer season and it is possible that many backpackers will have crossed Australia off their itinerary.  That would be a price Australian agriculture may pay with unpicked crops.

We would be unwise to wait for this challenge to meander through the courts.  This seems to have overtones about killing a goose that lays golden eggs.