This new tax will directly affect your grocery bill…

Australians can expect to pay more at the checkout for fruit as a new ‘backpackers tax’  will reportedly send farmers’

Australians can expect to pay more at the checkout for fruit as a new ‘backpackers tax’  will reportedly send farmers’ labour costs even higher.

Many Australian fruit farmers rely on backpackers to work in their orchards picking fruit and helping with production and packing.

The cheap labour costs allow farmers to pass on their savings to shoppers at the checkout, while still providing the backpackers enough money for food and board and the rest of their holiday.

This system is now under threat though after the government announced holiday tourists will no longer be able to claim the tax-free threshold of $20,000, meaning they must pay 32.5 cents for every dollar they earn.

The new tax has farmers worried they won’t be able to attract workers anymore now that such a huge part of their salary will be given to the tax man.

“The whole problem with this backpacker tax is that what it will do is constrict the supply of agricultural workers,” National Farmers Federation spokesperson Sarah McKinnon told The New Daily.

“For farmers, what that means is either a decision to plant fewer crops or to harvest fewer crops, so the net effect is of course a reduction in supply and that will put upward pressure on prices.

“It will be any of your horticultural crops, so mangoes, strawberries, avocados, blueberries – any commercial crop grown for Australian tables or for export markets will be affected because everybody in the horticultural industry, just about, relies on overseas workers.

Experts have warned their will be a “knock-on effect” and that Australians will end up paying more at the checkout for fruit.

Treasurer Scott Morrison has come out in support of the tax, which was initially introduced by his predecessor Joe Hockey.

“Being a Working Holiday Maker (WHM) does not mean you get a tax holiday. If you work here you should pay your tax here,” Mr Morrison told The New Daily.

“Most WHMs do not pay a single dollar of tax in Australia, despite using our services, such as health and emergency facilities, and earning an income here.

Many Australians are wondering why the government is making changes that will have such a negative affect on farmers who are already doing it tough.

It’s also a blow to shoppers who feel they are already paying too much at the checkout for their groceries.

In protest of the new tax, the National Farmers Federation has launched a petition, which has already received 27,063 signatures.

Do you think backpackers should be taxed for the money they earn under the tax-free threshold? Should farmers be exempt from taxes like this?

  1. brian corney  

    i don’t think it will affect consumers, it will be just another burden on farmers

  2. What else is possible from Morrison. He is a slogans man. Him and Christopher P together with Joe H. Are the trio Australian people must get rid off.

  3. richard  

    Boris there is a lot more than those three

  4. Michael Leitch  

    What do you expect this governments main focus is to save their own

  5. Joy Anne Bourke  

    NO, YES. It will affect consumers wait and see. PLEASE LISTEN TO THE PEOPLE INSTEAD OF MAKING IT HARDER FOR FARMERS TAX THE CORPORATIONS. Slack Government, Morrison is a ……… We will be sorry if Liberal get back in, the GST will go up, pensioners and low income earners will be pushed to the limit with all the new taxes. What about their pays and expenses they have to spend and cheat the people of Australia. They are living like Kings. Stop the MPs retirement pensions and let them live like we do and farmers – on nothing.

  6. Lyn Hassall  

    I may be wrong, but I think these overseas workers have to have health fund arrangements to enter the country. Even so, they may not need to use these services. The government is trying to shake money out of poor people’s pockets.

  7. Norma  

    It doesn’t matter which politicians we get rid of others with the same agenda replace them. Best thing to do is not vote for any politicians. Maybe then they may get the message.

    • olga  

      Norma what will happen is we will keep the government that is in power at that moment ,could be good or bad but will be staying there for ever, it is no a good solution.

  8. Chris  

    This might sound like a silly question, but got me thinking when I read Norma’s comment below – in regard to not voting for any politicians. If every voting Australian did just that – not voted for any politician in any party – what would happen?

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