Melissa Price (Durack, Liberal Party) Share this | Hansard source

I am very pleased to speak on this bill today. Together with my other regional Liberal colleagues—the member for O'Connor, who is here with me today; the member for Barker; and also the member for Forrest, another colleague of mine from Western Australia—we worked very hard to ensure that we have a balanced bill, which we are debating today. I am very pleased that we finally have the opportunity to discuss it.

The proposed backpacker tax changes, as they are now known, would have serious consequences for all Australians; but perhaps nowhere would the impact of the backpacker tax, as it currently stands, be felt more than in my electorate of Durack. The electorate of Durack is responsible for so much of the wealth of this nation, through such a wide variety of different industries. Clearly, the miners are a big contributor to my electorate and to the nation, but so are the farmers, the horticulturalists, the pastoralists and also a significant amount of tourism and hospitality operators. I know that this new package before the House is a vital part of our commitment to simulating growth in the regions and providing the flow-on jobs that service the working holiday communities.

Taxing working holiday-makers the 19 per cent from the first dollar makes us internationally competitive against comparable countries like the UK, Canada and New Zealand. We are also extending the age criteria for eligibility of working holiday-makers from 30 to 35. This will allow those seeking perhaps a professional hiatus or maybe a sabbatical—an ever more common phenomenon these days—to come to Australia and work regionally for an extended holiday, working at the same time should they choose to do so. There will be in-built integrity safeguards to protect working holiday-makers from exploitation, with measures taken to ensure working holiday-makers are paid the same rates for their work as their Australian colleagues.

Another welcome change will allow a working holiday visa holder to work in two different locations for six months at each time for the same employer. This is particularly important for the hospitality industry, who often have multiple worksites in their businesses. You know as well as I do, Deputy Speaker Goodenough, businesses will spend a considerable amount of time training up these new employees; it is therefore important that this effort is not wasted. This will allow the employer and employee to enjoy the benefit for the 12-month period. I believe that all these changes will be welcomed by working holiday-makers, who will have more money in their back pockets. The regions where they work can only benefit from more dollar spent locally. A $5 passenger movement charge increase, the first increase since 2012—and in-line with the CPI—also makes good financial sense in offsetting some of the losses that these changes bring to our budget bottom line.

Let me just say that the Labor Party should respect the hard work of the people who feed us, clothe us and provide us with the industries that drive this nation. The members opposite have again displayed a distinct lack of understanding of regional Australia and a distinct lack of understanding of the make-up of its workforce. If they did understand it, they would support this bill without hesitation.

This measure is part of the broad, informed plan of the Turnbull government to reform the economy and promote jobs and growth in regional areas. The Turnbull government has a strong plan to relieve the tax burden on average Australians and promote growth in the regions through a range of infrastructure programs and programs for small business. This bill will put more money into the back pockets of working holiday-makers, which they will in turn spend in the regions. Any program that puts funds into the hands of small businesses in the regions simply has to be encouraged because these are the best ways, and the most sustainable ways, to promote regional growth and secure jobs for the future.

We are moving into a very important part of the year. With the spring picking season upon us, small businesses in the agricultural, hospitality and tourism sectors and working holiday-makers are currently in a state of limbo. The members opposite are playing politics with their lives and livelihoods. The uncertainty is having a profound impact on regional Australians, and it is now urgent that we resolve it once and for all. By making these changes, we are making Australia more competitive in regards to comparative countries that rely on working holiday-makers as a source of labour in their region. Even at 19 per cent, we will still be a higher rate of tax than New Zealand, our biggest competitor for working holiday-makers, who have a lower base rate of pay than most Australian agricultural and horticultural businesses. This policy will put an estimated $2,000 extra in the hands of every working holiday backpacker in Australia, money that is very likely to be spent in the regions supporting local businesses.

In the short time left I have, I want to make the point that I think all of us, in this House and in Australia, want Australians to have Australian jobs. But sad reality is that this is not always possible. I firmly believe that until we change the rules and regulations around welfare payments, this will continue to be the case. As a consequence, working holiday-makers become a critical part of the labour force in regional Australia and that is why I commend this bill to the House.

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