Weeks after the Government’s second tax-rate back-down and its chaotic deal with the Greens, it appears farmers are being forced to tax backpackers at the rate of 32.5 per cent
This is exactly what the Government promised would not happen.
During the election campaign the Government promised farmers the backpacker tax would be deferred from July 1, 2016 to January 1, 2017.
Then on June 10, 2016, we learned the Australian Taxation Office website was still directing accountants to advise farmers to collect 32.5 per cent. The Government quickly directed the website advice be taken down, suggesting it was an error.
But reports today suggest the Australian Tax Office is advising farmers that backpackers who have worked since July 1 and continue to work up to January 1, are subject to the 32.5 per cent tax rate.
The nightmare continues for our farmers.