Media Release

KAP Leader and Federal Member for Kennedy, Bob Katter has today lashed out at the Federal Government for not scrapping the proposed backpacker tax. In last night’s budget the Government made no move to reverse the tax free threshold for backpackers and tax them at 32.5 per cent from the first dollar earned from 1st July this year.

“Under the most intense pressure the Government has stayed resolute in their mind-numbing stupidity on the taxing of backpackers.

“The loss of the backpackers would spell disaster for fruit and vegetable growers, particularly in industries like bananas, mangos, paw paws, blueberries and coffee.

“It must be remembered that the backpackers are the underpinning of the tourism industry in Far North Queensland. Take the backpackers away and you will take away a quarter of Far North Queensland’s tourism industry and maybe much more,” Mr Katter said.

Mr Katter has again urged the Treasurer to consider the superannuation requirements imposed on employers of backpackers, many of which never claim the superannuation and put another cost impost on the farmer.

“We have previously requested the Government to reduce the requirements for backpackers’ superannuation to remove some small burden from our farmers.

“What I said to Treasurer Morrison and to Treasury officials I spoke to is ‘what conceivable benefit is there for anyone forcing them to pay superannuation for backpackers, when maybe half of them never even bother to claim it?

“If you are going to increase the backpackers tax, which hardly makes it worthwhile them working; then give relief over here on the superannuation issue,” Mr Katter urged.

Mr Katter has also targeted the National Party and North Queensland Liberal Members of Parliament for their inaction on this issue.

“The absolute impotence and futility of the National Party on an absolutely critical issue for farmers in Australia and they have proved their absolute irrelevancy. Similarly, the Liberal members in North Queensland have once again proved their ineffectiveness.

“If I, as a complete nobody, could play a small, but significant role in getting the live cattle market reopened; they who are Chairmans of powerful committees and tout themselves as ‘important people’ - have delivered nothing,” Mr Katter said.

Mr Katter’s electorate of Kennedy includes extensive fruit and vegetable farming which is heavily dependent on backpacker labour to fill seasonal labour demands. Mr Katter believes this is not a threat to Australian resident jobs, but it does threaten the North’s tourism industry.

“I remain confident that not a single Australian resident job will be lost as a result of any of these measures.

“But without more backpackers, more jobs will be lost in the tourism industry, particularly in regional tourism in Far North Queensland.”