WA lobby groups WAFarmers and the Pastoralists and Graziers Association have mixed views over the Federal Government compromise on backpacker tax.
While the groups have welcomed the drop in tax from 32.5 percent to 19pc from January 1, 2017 the Pastoralists and Graziers Association (PGA) is frustrated that the Federal Government will seize 95 cents in the dollar of backpackers' superannuation.
PGA president Tony Seabrook said superannuation for backpackers was a waste of farmers time, added more red tape and should be scrapped.
He said under that ruling it wasn't fair to tax backpackers on the first dollar they earned.
As a farmer Mr Seabrook said he would have to make a superannuation contribution on their behalf.
"Of that they only get 5 per cent of it, and the rest goes back to government," he said.
"So they have reduced the tax, but they are keeping their super.
"It is more work for us, more red tape and if they can't even keep their super, why are we doing it?"
Mr Seabrook said at first glance the reduction was a positive for industry, but the superannuation payments would be taxed at 95 per cent when the backpackers left Australia, "so why waste farmers time, if they don't get it?"
He said the backpackers' departure tax had also increased by $5 and the 19c rate would apply up to $37,000, and above sum, the normal tax rates would apply.
"They reduced the tax from over 30 per cent to 19 per cent, and that sounds very good," Mr Seabrook said.
"But they are taxing the first dollar that these kids earn - which doesn't happen to any Australian.
"You can earn $20,000 and not pay any tax at all, as an Australian."
Some positive changes to the proposed tax would see the Working Holiday Visa application fee reduced by $50 to $390, an increase in age eligibility from 30 to 35 years, and the ability for workers to be employed by one employer for up to 12 months at two separate locations.
WAFarmers chief executive Stephen Brown said there had been 16 months of uncertainty since the proposal was introduced in the 2015-16 Federal Budget - so the news was a positive.
While the ideal outcome would be for the tax to be abolished entirely he said a reduced tax rate of 19 per cent was a fair compromise.
"Increased competitiveness in application fees and age eligibility will work towards securing a workforce that continues to see Australia as a destination of choice," Mr Brown said.
"We have always considered a 19pc tax rate to be a reasonable concession and we look forward to working alongside government to ensure our supply of working holiday makers not only continues, but thrives.
"We eagerly await the Federal Government legislation which will clearly outline the full range of changes and the implications."
The Hills Orchard Improvement Group spokesperson Brett DelSimone said the result over the changes to the tax was a positive step forward.
"The Hills Orchard Improvement Group views the Government's 19pc 'backpacker tax' rate as a sensible compromise and is pleased that industry concerns have been considered," he said.
"A decision such as this shows a consultative approach is the best pathway forward in making industry defining policy decisions.
"HOIG has worked hard with federal WA representatives, such as Andrew Hastie, to achieve a successful result and we now look to take this positive momentum forward into the upcoming stonefruit harvest season."
Central Wheatbelt MLA Mia Davies welcomed the tax "back down".
"It's still not ideal, but it's better than what was proposed and I'm pleased they've listened to the concerns of industry and business," Ms Davies said.
She called on the Federal government to undertake a targeted campaign to promote Australia as a great place to travel and work for working holidaymakers.
"Anecdotal evidence is that working visa numbers are down even though the tax is yet to be implemented, it's already impacted businesses in the region," she said.
"The 417 Visa has provided these businesses flexibility, allowing them to fill jobs that are not attractive to permanent residents due to the seasonal and part-time nature of the work.
"The Federal government needs to repair the damage caused by the tax by promoting Australia as a great destination for backpackers."
She said The Nationals WA had lobbied against the tax from the outset amid concerns from key stakeholders about its negative impact on employers and workers in industries across regional WA including agriculture, a mainstay of the electorate, and tourism.
"We have fought hard against this tax given the number of industries across regional WA that depend on unskilled backpackers to fill casual and seasonal employment vacancies that are often difficult to source locally," Ms Davies said.
"Backpackers also spend money as they travel, supporting local businesses and regional communities."