Media Release

KAP Member for Kennedy, Bob Katter is calling for backpacker’s superannuation payments to be removed. In the latest incarnation of the controversial ‘Backpacker tax’, backpackers will now pay 19c from the first dollar. But the Government will also take 95 per cent of the accumulated superannuation on departure from Australia.

Mr Katter said, “Why should farmers and hospitality operators have to pay backpackers’ superannuation?

“I don’t want to the farmers to have to pay superannuation to a person who is not an Australian resident and who on average makes $13 000 a year if they’re lucky.

“This 95 per cent grab on superannuation is tax by another name.

“Cut out the paper work for the poor farmers, give us some relief. The Government could have saved the farmers a lot of work. The administration involved with doing it this way is totally counterproductive.

“The LNP preach a level playing field through free markets yet they impose superannuation upon backpackers.

“To my knowledge, none of our competitive agricultural nations impose a superannuation charge on their workers -- resident or backpacker.

“The backpackers spend far more money than they take home. They are young, vibrant, exciting people that inject enrichment into our local communities. A quarter of the tourism industry in far north Qld is backpacker tourism.

“We appreciate appearing to back down on the backpacker tax but the payment of tax plus superannuation, the amount taken out of the backpackers pay and the farmers pocket amounts to 28 per cent anyway!

“If the backpackers were Australians, they’d pay no tax at all because they wouldn’t meet the threshold. Whilst we appreciate the efforts made by people like George Christensen… this is no victory, when in fact we’ve gone from zero taxation on backpackers to 35 per cent to now at least 28 percent if you include the grab on their super.”

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