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Xenophon's plan to fill labour shortage with unemployed 'will not work'

Tuesday, 20 Sep 2016 16:16:27 | Isabel Dayman

Citrus producer Ben Cant wants the backpacker tax issue resolved. (ABC News: Isabel Dayman)

A proposal to allow unemployed people to earn $5,000 picking fruit before their welfare benefits are affected is unlikely to stop an impending labour shortage, a Riverland citrus grower has said.

Key points:

  • Grower says unemployed people will not relocate for work
  • Nick Xenophon says risk of serious labour shortage if backpacker tax goes ahead
  • Backpackers fill about 75 per cent of harvest and packing workforce

Senator Nick Xenophon proposed that rules on how much people on benefits could earn should be relaxed so that unemployed Australians could take on agricultural jobs typically filled by overseas workers.

Riverland citrus producer and Citrus Australia board member Ben Cant said it was a "novel suggestion" but was unlikely to be successful.

"Realistically, I just fail to understand how a person who is currently unemployed is going to be able to afford to relocate just to work, because they don't have the cash to start with," he said.

Senator Xenophon said the measure would help food producers cope with a reduction in backpacker labour, which he said was a consequence of the Federal Government's incoming backpacker tax.

The controversial tax is due to take effect from January 1 next year and would result in overseas workers being taxed at a rate of 32.5 cents from every dollar they earn.

"This is a disaster that's looming this season," Senator Xenophon said.

"There will be literally hundreds, if not thousands, of tonnes of fruit that will be left rotting on the ground because there will not be enough people to pick the fruit."

Senator Xenophon proposed that people receiving unemployment benefits be allowed to earn $5,000 over an eight-week period before their welfare payments were reduced.

But Mr Cant said the eight-week working period suggested by Mr Xenophon was insufficient to meet the needs of many agricultural producers.

"Our harvest goes for up to six months and we really need people who are going to come and stay … otherwise, it's more training and changes with staff, and that affects the consistency of our outgoing product," he said.

"At the end of the day, we've got a business to run that requires six months' worth of employment and we need to maintain that in the steadiest way possible."

Producers desperate for backpacker tax resolution

Mr Cant said the citrus industry wanted to see the backpacker tax issue resolved as quickly as possible, before more damage was done.

Backpackers picking apples on a farm near Stanthorpe, Queensland Photo: Backpackers picking apples on a farm near Stanthorpe, Queensland. (ABC News: Gordon Fuad)

The Federal Government is reviewing the tax and Agriculture Minister Barnaby Joyce said he hoped for an agreement within a month.

"Backpackers form an integral part of our business, probably about 75 per cent of both our harvest labour and our packing labour," Mr Cant said.

"We just need it done. If it goes on for much longer, it will start to affect people's plans for next year.

"We've still got a month of harvest to go, but obviously backpackers are pretty soon going to start planning next year's trips [and] we need a resolution so they can make their plans to come to Australia."

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