Fruit Growers Tasmania has reiterated its call that the major parties and independent
candidates heed the industry's plan for a competitive payroll tax.
The Tasmanian fruit industry is seeking a decrease in the payroll tax rate for the agriculture
industry in regional Tasmania from 6.1 per cent to 1.2 per cent to match the rate of regional
Victoria.
"This election should be about choosing a future Tasmanian government that will strike the
right balance between affordable taxing and charging, and affordable spending," Peter Cornish, Fruit Growers Tasmania CEO, said.
"It's about better determining where government involvement adds significant value to
Tasmanians and where it should be less involved because the outcome doesn't justify the cost. It's about determining what is affordable. Whatever government decides to spend our money on, we need to pay for it. So, it had better be justified – whether it's a tax or charge, a service or expenditure.
"And while governments do the heavy lifting in education and health, welfare, law
enforcement, aged care, the environment, infrastructure, and much more, it's the private sector that drives economic activity and pays the bills. Governments don't pay their own bills.
The Tasmanian fruit industry is one of those private sector industries that pays the bills,
invests in machinery, equipment, services, and trees, and employs thousands of people. It's also one of Tasmania's comparative advantages because we grow exceptional fruit, but it's
expensive to grow here, more expensive than mainland Australia."
The Tasmanian fruit industry employs over 10,000 people and grows over $325 million worth of fruit each year, to the enjoyment of locals and visitors alike, while also sending fruit to
mainland Australia and countries all over the world, and the fruit industry employs those 10,000 people in regional areas, from Campania to Cressy, Lebrina to Lymington, Riana to Ranelagh, and Westerway to Westbury.
The fruit industry also pays over $10 million in state payroll tax each year. That's $1,000 a
person, whether full-time or part-time, seasonal or ongoing. And it's dragging the industry back
and restricting further growth and job creation.
Peter added, "For some of our fruit growers, payroll tax is the third highest cost they face after
wages and superannuation. And it's the Tasmanian Government's decision to levy the third-largest cost on those growers. Regional Victoria is the key competitor to Tasmania's fruit industry – they grow in the same season as Tasmanian growers. The Victorian Government supports their growers through a lower rate of payroll tax for the regions. A large Tasmanian grower with a payroll of $10 million will pay over $500,000 in Tasmanian payroll tax compared to the $110,000 their regional Victorian counterpart pays – almost 5 times as much!"
For more information:
Peter Cornish
Fruit Growers Tasmania
Tel: +61 429 588 481
[email protected]
