First flagged in the 2015 Federal Budget, the measure had originally been set to tax working holiday makers as non-residents at a rate of 32.5 per cent.  However, the agricultural community, fearing its temporary workforce would be decimated by this clear disincentive for backpackers to come to Australia, strongly opposed the measure.  This opposition included a petition which attracted around 50,000 signatures.

National Farmers’ Federation (NFF) President, Brent Finlay, said the agriculture sector warmly welcomed today’s common sense conclusion to what had been an ongoing issue for farmers across all Australian states and territories.

“The NFF has always advocated for a rate of 19 per cent as a fair and reasonable measure,” Mr Finlay said.

“We have consistently said agriculture simply cannot do without backpackers and, following today’s announcement, we can again go to the working holiday maker community and say that coming to work on our farms is worth it.

“We are also greatly heartened to demonstrate that, when an industry as a whole works together, we can achieve national advocacy outcomes that are positive for both our sector and the broader Australian economy.”

Mr Finlay said while he acknowledged there would be some changes to working holiday makers’ superannuation, the measures announced by the Government today were sensible and reflective of the needs of both backpackers and the farm sector.

“The nature of these types of working arrangements is that farmers need an immediate, temporary workforce and backpackers want immediate cash in their pockets to spend while travelling - so the approach taken makes sense.

 “We now look forward to seeing further detail of today’s announcement and working with Government to make sure we have backpackers coming to our country who are eager to work on our farms and contribute to our rural and regional communities.”