Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

I thought I would take the opportunity today to make a contribution to the working holiday-maker reform package, which has its roots in the lifting of the tax-free threshold in 2012 from $6,000 to $18,200. This almost immediately absolved most backpackers, who are often in Australia for six months or so spread over two taxation years, from paying income tax while they were here. The setting of a special taxation rate for those on backpacker visas is addressing this obvious disparity.

For the electorate of Grey the largest demand for backpackers comes from the tourism and hospitality industry, but increasingly the agricultural industry is also using backpackers for seasonal work, especially during seeding and harvest. Hospitality in the outback areas of Grey would stall in its tracks, in particular in the Flinders Ranges, Hawker, Coober Pedy, Maree, Oodnadatta and Marla, if it were not for backpackers.

Let me also say that when I speak for those who venture inland looking for work I am incredibly impressed by their excitement at what they have discovered: the legend of Australia. It is an opportunity to live and learn on what looks to many like a movie set and a chance to live the dream of the outback—one unfortunately missed by so many of our own population. It is a great tragedy that the unemployed, in particular our young unemployed, will not move to accept these jobs. The damage they do to their own lives by just accepting unemployment as a fact of life is immense.

Last year I ran a youth survey in my electorate. One of the questions was: 'Should a young unattached person be required to relocate to find work?' An astonishing 75 per cent said no. It raises a huge question as to how many young people have missed the lesson on employment—that it is the stepping stone to a successful life outcome. A job is everything—better health, better educational outcomes and happier families.

Australia will be so much better off when we have a mobile workforce willing to move to where the work opportunities are greater. At the moment, we have hundreds of businesses that would close their doors if the supply of backpackers were to cease or even drop off. Having a vibrant backpacker market has a range of other advantages as well: building relationships for the future; attracting highly educated potential migrants; and, best of all, on almost every occasion, the backpackers leave with a lot less money than they arrive with. It is no secret that many in the coalition were not happy with the proposed reforms when the tax rate of 32.5 per cent was proposed. I thought the 19 per cent rate offered by Treasurer Morrison was a pretty good deal. Of course, the Senate has seen it differently. I think there has been a fair bit of grandstanding and political point-making in that. But I rest my case. (Time expired)

Scott Buchholz (Wright, Liberal Party) Share this | Link to this | Hansard source

In accordance with standing order 193, the time for members' constituency statements has concluded.