Andrew Hastie (Canning, Liberal Party) Share this | Hansard source

It is always a pleasure to follow the member for Bendigo. The tenor of her speeches always has a sort of sour note. She talks a lot about the Chiko Roll, but I reckon she was raised on lemons.

Speaking of fruit, it is a great pleasure to speak today about the working holiday-maker reform package which our government is delivering. I am pleased to speak today on the Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016 because it is of great significance for my electorate of Canning and, indeed, the whole of Australia. The working holiday-makers reform package will provide certainty and stability for the horticultural, agricultural and tourism industries. The member for Bendigo cited the tragic death of a German backpacker just recently. I just want to say: we are talking about tax reform here. I am not sure if the results of the inquiry into that tragic incident have been released or even concluded, so let's not speculate and make erroneous links between government policy which is not yet enacted and that tragic example.

This is commonsense legislation and proof that this coalition government is committed to listening and responding to the concerns of the electorate. Through extensive stakeholder engagement, we have put together this policy, which both is equitable and will balance the range of interests involved. Earlier, the member for Barker spoke about his work alongside other backbench colleagues in the coalition. Alongside the member for Barker, the members for O'Connor, Durack and Forrest and Senator Chris Back all contributed a lot, as far as I am aware, to the development of this policy. I would also like to thank the Deputy Prime Minister and Minister for Agriculture and Water Resources and the Treasurer for listening and being open to the perspective of electorates like mine.

There are several key features to this bill, and foremost is the reduction in income tax to 19 per cent for working holiday-makers under the 417 and 462 visas. On this matter, we have listened to the concerns of producers and peak bodies such as the National Farmers' Federation. It is, of course, right and fair that visitors to this country should pay tax here like everyone else who works, given their use as well of public resources. But 32.5 per cent was simply too much and so an equitable rate had to be found that did not undercut our other arrangements. For instance, travellers from the Pacific Islands working under the Seasonal Worker Program pay tax at a flat rate of 15 per cent. A rate of 19 per cent does not undercut this arrangement but, nonetheless, remains generous by comparison to the original rate of 32.5 per cent. When our higher wage rates are taken into account, it is clear that this bill will make us competitive on the international stage for prospective holiday workers. We are, of course, competing with New Zealand, Canada, South America and other parts of the world, where young people from Europe particularly want to go and broaden their horizons before undertaking study or pursuing their vocations or careers. So we want to make Australia a place where they come, they have that cultural exchange and it is a positive experience, and they also have the opportunity to contribute to our economy and to our key industries in agriculture and horticulture and also earn a bit of money—which, of course, is spent in the communities where they live. I think of Capogreco Farms in Hamel, in Canning. They have 60 backpackers at any one time working for them. They produce a lot of fruit and have permanent housing facilities for the backpackers who travel. In fact, people in Italy and France know about them—word of mouth travels. It is a positive experience, particularly in Western Australia, for young European workers.

This bill will provide better protections and oversight for workers from overseas. By strengthening the tools available to the Fair Work Ombudsman, this government is working to protect backpackers and other potentially vulnerable working holiday-makers from exploitation. This government does not distinguish between nationalities. If you are a worker, you deserve the same protections as any other worker, so we are taking steps to protect workers.

Employers of working holiday-makers must register for their workers to receive the 19 per cent taxation rate. This will allow potential employees, young people from across the world who are planning their year ahead, to make informed decisions about where they go. There are a lot of places in Australia where you can work. So the register will help young people decide where they settle for their time in Australia and will also hold employers accountable. If they are on the register, they have to meet standards. They can only tax at the 19 per cent rate if they are on that register.

This legislation will also increase the desirability of Australia as a destination for working tourists. It does so by reducing the visa application charge for 417 and 462 visas from $440 to $490. That is a $50 saving. For most backpackers, being in their late teens or early 20s, $50 means a bit—a couple of beers or food for the week, or what have you. So I welcome that reduction in cost, as well. Expenses in the bill are offset by increasing the passenger movement charge by $5. We are also spending $10 million to promote Australia as a destination for working holiday-makers. These measures highlight the government's commitment to promoting Australia's working tourism brand in a way that is economically responsible.

The coalition has listened to the electorate and acted accordingly. We have consulted carefully and are moving as fast as possible to provide certainty and security to Australia's hardworking growers and their prospective employees or holiday workers. These decisions have been broadly welcomed by industry. The Labor Party, by contrast, seems unable to be happy with anything. I have listened to some of the opposition speeches on this bill—such as the one a few minutes ago from the member for Bendigo—and I have heard their complaints about the government's handling of this issue. What is their problem exactly? Is it that the issue has not been addressed quickly enough? Or is it that enough scrutiny has not been applied—that we have not consulted for long enough? We have heard all of those complaints.

A few months ago the opposition spokesman for agriculture was complaining that the question of the backpacker tax had not yet been resolved. Now that we have resolved it and have produced the legislation after consulting widely, and after creating a package that is broadly supported by industry, Labor now seek to delay the passage of this bill by punting it off to a Senate economics committee. They are slowing the process down. My fruitgrowers in Canning have said very clearly to me that they are concerned about a secure workforce. They are concerned about it now, not in six months. Because of the nature of the fruitgrowing business, you have to make projections; you have to plan into the future. So they need surety that they will be able to secure a workforce for when it comes time to pick fruit. It has to happen soon. So I implore those opposite to get on with the business and pass this bill.

It is important that we and the rest of the Australian people understand, though, what is going on here. Those opposite like to talk a big game. They talk about standing up for people, for workers, and about backing Australian manufacturers and, of course, the agricultural sector. Yet, all we are getting here is politicking—nothing more, nothing less. It is true to form. We have seen the Labor Party obstruct and mislead in recent weeks and months on the same-sex marriage plebiscite, on Medicare. They have a long history of this on renewable energy. Now, we are seeing them do the same thing for agriculture, horticulture and tourism. They go on about how the government is in a shambles over the backpackers tax, they get a few grabs in the media and they then sit on their hands. I am calling on you now to pass this bill—get on with it. This is a good reform. It gives security to our industries. Let us put politics aside. This place used to be renowned for the effectiveness of the two-party system. That two-party system made reform possible during the Keating and Hawke era. In the same spirit, this is one of these industry reforms that need to happen, and I call on you to back it.

This government is about delivering. This is about ensuring that Australia remains a competitive destination for the overseas labour market. Again, we are competing with other countries, like Canada and New Zealand, for these workers. It is an economic issue, and there are many factors that come to play. We need to get the balance right. As I have said, we have consulted widely and carefully, and this bill does address those concerns. However, this bill matters most because it affects real people. At stake are the crops and the fruit that need to be picked, which, otherwise, would be left to rot on the ground. At stake are agreements and contracts with buyers which could be lost in the future. At stake are the livelihoods and wellbeing of hardworking, everyday Australians who should not have to live according to the campaign timetable of a Labor Party that cannot accept it lost the election.

I would like to take the opportunity now to highlight how this issue has developed in my electorate and how this government's ministers have responded to the concerns of my people. I applaud the hard work and advocacy of the Hills Orchard Improvement Group, led by the very capable spokesman Brett DelSimone. Brett has persuasively put the case for the holiday-makers reform package. He has very competently represented the fruitgrowers of Roleystone, Karragullen, Pickering Brook and other suburbs in Canning. They are an excellent community group, and it has been a pleasure working with them on this reform.

There were two significant events in the lead-up to this bill. We had a fruitgrowers' forum for which the Cabinet Secretary, Senator Sinodinos, came to Canning in early May. It was hosted by John and Emily Della Franca. They own CORE Cider House in Canning. They are third-generation orchardists. It is a great facility. You can go there for a nice lunch and a bit of cider. You can sit there with a beautiful vista over their orchard. It is a great place. I highly recommend it. So we had a very good meeting with Senator Sinodinos. I remember one thing, though. One of the fruitgrowers said: 'We are competing with the welfare system when it comes to attracting workers and securing workers. We are competing with the welfare system.' So I am very glad that we have the Minister for Social Services and the Minister for Human Services working up a substantial reform package which, hopefully, will help fruitgrowers and people in the agricultural sector secure their workforces into the future. We need young Australians working, not on welfare. So I am very proud that the government is taking action in this area.

The second meeting was with the Minister for Immigration and Border Protection, who visited fruit growers during the campaign. He talked about the classification of suburbs in Canning that were previously metropolitan but are now regional, which also gives more security to employers who hire backpackers or working holiday makers. So there has been very good engagement from our ministry and very good engagement from my local community groups. This is how good public policy is formed. I want to applaud the people in Canning, and the government for the way they have delivered this package.

In closing, I commend this bill to the House. It is sensible reform designed to incentivise a secure workforce for our fruit growers; promote Australia as a desirable destination for working holiday makers; and, most importantly, ensure our agricultural, horticultural and tourism industries remain strong into the future.

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