Farmers and tourism heads in Australia are reportedly against a planned new backpacker tax, and want the same to be scrapped, with the reason being it will allegedly deter many young persons from making a trip to the country.
As per Steve Whan, manager of the National Tourism Council (NTC), in place of troubling the Working Holiday Makers with extra taxes, it would be better in case Down Under appreciates their economic potential and the gains they bring to the existing manpower.
It is recommended that a new backpacker tax’ from July will do away with the tax-free threshold for people doing a job in the nation on Working Holiday Visas even as the administration has rationalized the development by asserting that the same will invite an additional $540 million in income.
However, Whan indicated that it is expected to result in a drop in the figure of those young individuals making a trip to the nation who are put-off by having to pay tax and so the same will not increase not quite as much as expected.
He added that as per the administration the same will generate $540 million, but, in case the figure of the Working Holiday Makers nose-dives as a result or the amount they work heads south, the number is already doubtful. The tax will certainly cost the country much more in economic harm.
He indicated the tax will denote fewer employees in regional & rural areas--predominantly in hospitality & agriculture. Guests on the Working Holiday Visas fulfill an increasing demand for workers, and minus them the nation faces serious workforce famines.
Whan added the proof is for all to see—the Working Holiday Makers do not dislodge the workers of Oz, but instead generate new economic movement and more work-opportunities.
Reportedly, the National Farmers Federation is also keen that the tax is duly reconsidered since backpackers are extremely vital to the economy. A NFF spokesperson declared that they fill critical labour requirements at peak times, and carry new life into rural societies.
In case they have to shell-out 32.5 cents tax in each & every dollar, their enthusiasm will evaporate and they will hardly come any longer. They won’t experience the general life in the rural Australia, and farmers will hardly be in a position to either grow and harvest their crops or fill critical on-farm responsibilities.
He added that it’s neither a just tax, nor a good economic move. Every year, since backpackers make a contribution of over $3.5 billion to the national economy, there is a pressing requirement of more of them, not less.
Whan indicated that backpackers have more often than not saved for some time for a trip of a life span to Down Under, and instead of exploiting them and making them give tax, it would be better if they are given a red-carpet welcome as an economic benefit.