Australia’s Backpacker Tax should match New Zealand’s at 10.5%

Following the announcement of a long overdue back flip on the backpacker tax by Treasurer Morrison today, JLN Independent Tasmanian Senator Jacqui Lambie has called on the Federal Government and Labor Opposition to both support a new Backpacker Tax - which at least matches that of New Zealand’s Backpacker Tax - at 10.5%.*

“When it comes to competing for vital backpacker farm labour and tourists - New Zealand is one of our biggest and most aggressive competitors. So it makes sense for our Government to at least reduce our backpacker tax rate to one that’s competitive with NZ  - at 10.5%.” said Senator Lambie.

“I and many Tasmanian farmers would like the backpacker rate to remain unchanged at 0% - however we’re happy to meet the Government and the Labor Opposition halfway at $10.5%. By fixing the rate at 10.5% the government’s $10M tourism/backpacker advertising campaign is guaranteed to work – and the unnecessary damage that the Liberal Government caused to our farming and tourism sectors will be more quickly repaired” said Senator Lambie.

“I understand that our farmers want the Government backpacker legislation – to pass quickly through the Senate – but I will introduce amendments to the Government’s legislation in the Senate, which reduces the rate of the Government’s proposed tax from 19% to 10.5%.

I hope that all Crossbench, Labor and Green Senators will agree with my proposal and also agree that we should remain competitive with NZ. Should the Senate choose to amend and decrease the Government’s backpacker rate from 19% to 10.5%  – I hope that the Government respects the Senate’s decision – and votes for their own legislation which may be amended, to pass the Parliament. ” said Senator Lambie.