Key crossbench senators want Labor support on backpacker tax

UPDATE: LABOR has backed a plan by three crossbench senators for a backpacker tax rate of 13 per cent, up from its earlier position of 10.5 per cent.

Three crossbench senators are refusing to budge on the backpacker tax and will now lobby Labor to support a proposal for a 13 per cent tax. AAP Image/Mick Tsikas

UPDATE: LABOR has backed a plan by three crossbench senators for a backpacker tax rate of 13 per cent, up from its earlier position of 10.5 per cent.

The move will now put pressure of the Turnbull Government to support the amended rate before end of parliamentary year .

Independent senator Jacqui Lambie, One Nation senator Rod Culleton and fellow crossbencher Derryn Hinch held talks with Government MPs late into the night and were confident they had struck a deal for a 13 per cent backpacker tax

But this morning Treasurer Scott Morrison said the Government will not back down from its 15 per cent rate.

Sources told the Herald Sun that a number of Liberal backbenchers softened to a 13 per cent tax rate proposed by the three crossbenchers which was seen as a halfway agreement between 10 and 15 per cent.

Labor had originally supported a 10.5 per cent tax rate but today announced it would agree to the new rate proposed by the crossbenchers.

Labor Leader Bill Shorten said the Opposition was prepared to offer a “sensible, commonsense solution”.

“The Government has failed to convince the Senate on 15 per cent,” Mr Shorten said.

“We think a lower rate is in the best interests of industry, the Australian economy and business.”

It is critical the government reach a deal today — the final scheduled sitting day of the year — or the holiday working visa tax will revert to 32.5 per cent from January 1, which farmers fear will drive away seasonal fruit pickers.

Victorian farmers sent their final plea this morning for bi-partisan support of a 15 per cent compromise in hope a deal could be reached to give the industry the chance to attract labour for harvest.

“If the Senators understood the damage this stalemate is causing thousands of family farmers across the country they would surely compromise,” VFF Horticulture Vice President Emma Germano said.

“Farmers are accustomed to dealing with natural disasters that destroy harvests, but no one expects – or plans for – a political disaster that will destroy a year’s work and income.

“My family and I have worked hard and spent hundreds of thousands of dollars to plant and nurture a crop that will not only provide us income but will feed thousands of Australians.

Ms Germano said that if this issue wasn’t resolved today farmers would suffer the most and consumers would pay more for fresh food, with fruit likely to be left rotting on trees and vines, and vegetables rotting in the ground.

“This may not be the perfect number but it is a number we should all be able to accept in the interests of the community.

Earlier, crossbench senator refused to budge on the backpacker tax, lobbying Labor to support the 13 per cent tax proposal.

Independent senator Jacqui Lambie, One Nation senator Rod Culleton and fellow crossbencher Derryn Hinch held talks with Government MPs late into the night and were confident they had struck a deal for a 13 per cent backpacker tax.

Derryn Hinch held talks with Government MPs late into the night and was confident a 13 per cent backpacker tax deal had been struck. AAP Image/Mick Tsikas

Sources told the Herald Sun that a number of Liberal backbenchers have softened to a 13 per cent tax rate proposed by the three crossbenchers which is seen as a halfway agreement between 10 and 15 per cent.

It is critical the government reach a deal today — the final scheduled sitting day of the year — or the holiday working visa tax will revert to 32.5 per cent from January 1, which farmers fear will drive away seasonal fruit pickers.

I offered ScoMo two deals: A 13% tax or, until August, take off table and let this season’s crop be picked. He rejected the latter

— Derryn Hinch (@HumanHeadline) November 30, 2016

The three crossbenchers will now take their proposed rate to Labor in an effort to broker a deal before end of parliamentary year.

Labor and the Greens support a 10.5 per cent tax rate.

The late night deal comes after senators Culleton and Hinch voted with Labor and Tasmanian Senator Jacqui Lambie to block the government’s 15 per cent rate yesterday.