Wednesday 6 May

MEDIA RELEASE

Vulnerable workers kicked by latest budget, doomed to a black market economy.

Barely a week after Four Corners aired explosive allegations about the exploitation of working holiday visa holders in Australia, the Abbott Government has announced harsh budget measures to hit these vulnerable workers hard.

Last night, Treasurer Joe Hockey announced that working holiday visa holders would be subjected to a 32.5% taxation hit from their first dollar of income. This is a substantial change from the current system where visa holders are eligible to the tax-free threshold of almost $20,000.

As the National Union of Workers has revealed, many working holiday visa holders are subjected to abuse and are routinely underpaid in many agricultural industries.

There are deep concerns that this measure will provide a disincentive for employers to pay workers appropriately, and the black market economy of dodgy contractors and underpaid workers will only be perpetuated.

This measure is effectively like pouring gasoline on a fire it makes an already terrible situation worse General Branch Secretary Sam Roberts said.

Unscrupulous labour hire contractors have been infecting the economy and our workplaces for some time. Rather than providing any measures in the budget to treat this problem, Joe Hockey and Tony Abbott have targeted vulnerable workers, effectively kicking them while they are down.

The Victorian and South Australian governments have recently announced inquiries into the labour hire industries in their states.

Media contact, Emma Kerin 0448 555 112