Good news for farmers

Dec 02, 2016

ADF has long-advocated for change to tackle big business misusing its power and reducing competition in markets.

Yesterday, the last day of Parliament for 2016, Treasurer Scott Morrison announced the introduction of the s46 ‘effects test’ legislation 2016 into the Federal Parliament.

The introduction of an effects test is in line with competition policy around the world – Australia will be joining the clear majority of developed nations who already have established effects tests.

The provision, which will be included in section 46 of the Competition and Consumer Act 2010, will address the current unequal distribution of market power and encourage transparency to the benefit of producers, consumers and retailers.

The considerable amount of work, investment, planning and risk required to produce, transport, process, distribute and deliver a perishable product, fresh milk, on a daily basis is not reflected in the current discounted price of dairy by major retailers.

Supermarket discount tactics are directly affecting market supply and demand functions, effectively blocking processors from being able to provide necessary stronger prices to farmers to stimulate milk production.

We are looking forward to the ‘effects test’ legislation being passed early next year.

Another major development that occurred in Parliament yesterday was the resolution of the backpacker tax.

ADF have consistently said that we believe it is reasonable for backpackers to pay some tax, but 32.5 per cent was too high.

Led by National Farmers Federation (NFF), ADF and our state member organisations have lobbied for a decision over the past 18 months and we can honestly say it is a huge relief.

The impact of months of indecision have been felt across the dairy sector. What we really need now is to get the message out there that backpackers are welcome on our farms and they will receive a fair tax rate for their work.

We thank the NFF and our members for their hard work to get this across the line. We know that this has not been easy and the process was long, however, we adapted and united as an agricultural industry to secure a deal which benefits farmers, backpackers, tourism and regional communities.

It is important to note that although we are small team at ADF, we remain committed to driving strong policy to transform the way our industry operates for the better.

David Basham

ADF President

 

ADF opposes backpacker tax

Feb 05, 2016

Australian Dairy Farmers (ADF) has joined the National Farmers Federation (NFF) in calling for the Federal Government to halt the proposed backpacker tax.

As part of the 2015 Federal Budget the government announced that from 1 July 2016 all working holiday makers will be taxed at a rate of 32.5 per cent on all income.

ADF President Simone Jolliffe said that dairy farmers rely on backpackers for vital on-farm roles which cannot be filled locally or to complement their existing workforce during peak times.

“The dairy industry is suffering a skilled labour shortage which means that we need overseas workers, such as backpackers, when we cannot find suitable local staff,” Ms Jolliffe said.

“If this tax is brought in as it currently stands, backpackers may choose to travel to other countries such as New Zealand.”

“This would be damaging to the dairy industry, regional communities and the tourism industry, as well as the broader economy.”

Backpackers currently earn, on average, about $15,000 while in Australia, and may be eligible to claim the tax-free threshold.

“ADF believes it is fair and reasonable for backpackers to pay some tax, but 32.5c is excessive,” Ms Jolliffe said.

“We are supporting NFF’s position that 19 per cent, achieved through deactivation of the tax-free threshold, is fairer to both backpackers and the agricultural industry which relies on them.”

We encourage everyone who understands the significant contribution backpackers make to agriculture to support NFF’s campaign by signing an online petition.

To join the petition, go to https://www.change.org/p/australian-government-stop-the-backpacker-tax


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