Derryn Hinch double crosses government on backpacker tax after BBQ fallout with Scott Morrison

DERRYN Hinch double crossed the government to sink its backpacker tax compromise. Mr Hinch switched his vote after a discussion with Treasurer Scott Morrison at the Prime Minister’s Christmas BBQ on Sunday.

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HUMAN headline Derryn Hinch double crossed the government at the final minute to sink its 15 per cent backpacker tax compromise.

Remarkably, Mr Hinch had supported the government throughout all negotiations over the contentions issue and had even voted for the higher 19 per cent tax rate before backing Labor’s 10.5 per cent proposal on the senate floor.

Double cross... Senator Derryn Hinch in Canberra today. Picture Gary Ramage

Foreign backpackers are now facing the prospect of a 32.5 per cent tax rate from January 1 with the government refusing to back the 10.5 per cent rate being proposal by Labor.

After passing the ABCC bill, the Turnbull government expected changes to the backpacker tax to sail through the senate before Mr Hinch switched sides after he was left angry at Treasurer Scott Morrison’s handling of the issue.

Labor successfully had its 10.5 per cent proposal pass the senate but it will be blocked by the government in the lower house leaving the parliament in a stalemate.

Senator Pauline Hanson arrives at The Lodge for a barbecue hosted by the Prime Minister in Canberra. Picture: Ray Strange.

Senator Derryn Hinch arrives for the barbecue after switching his vote on the backpacker tax. Picture: Ray Strange.

Mr Hinch switched his vote after a discussion with Treasurer Scott Morrison at the Prime Minister’s Christmas BBQ on Sunday.

Mr Morrison had indicated the government would not agree to a 15 per cent compromise to break the stalemate before announcing it the next morning, leaving Mr Hinch furious.

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The issue must be resolved by tomorrow, before parliament rises for the year, otherwise backpackers will be hit with a 32.5 per cent tax.

Mr Hinch said the government should pass Labor’s 10.5 per cent proposal.

“I’ve been told by the government many times, you’ve got to compromise in this town,’’ he said.

“Right now, I’m on 10.5. I came down from 19 … I don’t like Mexican standoffs of any sort. The ball is back in their court.

BBQ fallout... Hinch changed his vote after a discussion with Scott Morrison. Picture Kym Smith

Disappointed... Hinch double crossed Malcolm Turnbull over the backpaker tax.

“You’ve got a couple of Nationals who crossed the floor over the Adler (shotgun), why don’t they cross the floor for the farmers?”

Despite the double cross, Mr Turnbull said he remained confident Mr Hinch would reconsider.

“The crossbenchers can reflect on their position, and we plainly encourage them to support the 15 per cent backpacker tax. That is much better than the backpackers paying 32.5 sense,’’ he said.

“Some of you suggested that we may not be successful in getting these industrial reforms through the senate. We believe in an optimistic and constructive approach.”

Finance Minister Mathias Cormann was less diplomatic. “The people who got stuffed today by Labor, Greens, Senator Hinch, Senator Culleton are the farmers of Australia,’’ he said.