Labor wants the backpacker tax - first proposed at 32.5 per cent and then reduced to 19 per cent - to be dropped to 10.5 per cent, but the Coalition won’t budge. 

National Farmers’ Federation (NFF) chief Tony Mahar called on parliament to make a decision urgently, as “enquiries about farm work are steadily dropping away”.

“There are real people and real jobs at stake here particularly with summer crops ready for harvest,” Mr Mahar said.

“While the Coalition’s compromise package of measures to fix the backpacker tax is not perfect, it is a far sight better than the original proposal of 32.5 percent which will be the default tax rate from January 1, 2017 if the legislation is not passed.”

Riverina MP Michael McCormack told parliament on Wednesday farmers were being used for political fodder. 

“The stalling of the passage of legislation will mean backpackers will be liable for 32.5 per cent tax rate from new years day, creating uncertainty and instability for agriculture, horticulture, tourism and hospitality sectors,” Mr McCormack said.

“The reduction in tax rate from 32.5 per cent to 19 per cent ensures backpackers will pay a fair amount of tax on earning and is internationally competitive.

“What we're seeing from the Labor party is an absolute slap in face to many regional and small businesses; farmers, local publicans, cafe owners, tourism operators.”

CEO of Summit Employment and Training Mark Taylor, whose company matches backpackers with local growers, claimed uncertainty was taking a toll. 

“We haven’t seen the same numbers coming through,” Mr Taylor said. 

“A lot of the backpackers talk about it, they are very conscious of the new tax.”

Murray-Riverina NSW Business Chamber Ben Foley said the region was paying for political brinkmanship.

“The uncertainty creates huge issues for employers in our region,” Mr Foley said. 

“If we can't get both major parties agreeing, the losers are the major Riverina growers.”

The Area News