Politicians battle over backpacker tax on final sitting day of 2016

THE 15 per cent backpacker tax has cleared its final hurdle in an 11th hour deal, passing the Senate after the Greens agreed to support the hotly debated bill.

Prime Minister Malcolm Turnbull has accused the Opposition of ‘bloody-mindedness’ over the backpackers tax. Picture: Lukas Coch.

THE 15 per cent backpackers tax has cleared the Senate 43-19 after the Government made a deal with the Greens.

The Greens emerged as the Turnbull Government’s unlikely ally on the hotly debated tourism tax, which was unlikely to pass without their support.

After a day of political “ping pong” on, with MPs on deadline to agree on a rate before the Christmas break, the Greens announced just before 4pm they would support the Government’s 15 per cent rate.

“We are getting on with our job of delivering,” said Prime Minister Malcolm Turnbull at a press conference at 5.30pm, where he thanked the Greens.

Credit where credit is due. Thanks to the Greens for doing what Labor should have done. #backpackertax @RichardDiNatale

— Barnaby Joyce (@Barnaby_Joyce) December 1, 2016

Greens leader Richard Di Natale took a swipe at the Government for the drawn out debate over the backpackers tax while announcing his party’s support.

“We have seen the Greens really clean up the mess that is of the Government’s own making,” Senator Di Natale said.

“This is an issue that has been going on for far too long.

“Farmers just simply didn’t know whether they were going to be able to collect their fruit or whether it was going to be withering on the vine.”

The party also secured a deal for $100 million for landcare and an amendment to get backpackers more of their superannuation back.

The two major parties had been locked in a stalemate for most of the day.

Treasurer Scott Morrison was standing by the 15 per cent rate the Government had proposed earlier in the week, while the Labor Party shifted its position at midday to push for a 13 per cent rate.

“This is not a game, this is not a game of ping pong on legislation and tax rates,” Mr Morrison said.

Crossbenchers Rod Culleton and Derryn Hinch had been pushing for a 13 per cent tax rate for foreign workers after helping to block the Government’s proposed rate of 15 per cent yesterday.

Mr Morrison had grudgingly announced on Monday the government would shift from its proposed 19 per cent rate as a compromise with the Opposition, which was pushing for 10.5 per cent tax along with several crossbenchers.

Today is the year’s final parliamentary sitting day and unless it approves a tax rate between Labor’s 10.5 per cent and the Government’s 15 per cent, backpackers will be facing an even higher 32.5 per cent rate from January 1.

But with the government refusing to send the Bill to the Senate unless it can confirm it has got a majority of votes to back its rate, there’s no certainty in sight for farmers.

The government’s apprehensiveness of putting the Bill to a vote is expected, after being caught by surprise when two senators it believed would have voted for its twice-reduced rate sided with Labor yesterday.

Derryn Hinch are pushing for a 13 per cent tax rate for foreign workers. Picture: Mick Tsikas.

The Opposition is still refusing to back the 15 per cent rate but crossbenchers might help the Government get it across the line.

Senator David Leyonhjelm, previously a staunch opponent of the tax, agreed today to support the 15 per cent rate if the Government dropped a measure which would name farmers who employed backpackers on a public business register.

Prime Minister Malcolm Turnbull has accused the Opposition of vindictiveness in refusing to budge.

“We are committed to the 15 per cent level,” Mr Turnbull told ABC radio this morning.

“We’ve made no agreement with any other parties.

“But the question that should be asked ... why they (the Labor Party) believe rich kids from Europe should pay less tax than Australian kids and less tax than Pacific Islanders, who are working here to send on average $5100 each six months back to their villages?”

Employment Minister Michaelia Cash said the government had been working diligently with the crossbench to pass the tax.

“We have negotiated with the Senate in relation to the delivery of the two double-dissolution trigger bills, which show that the Senate can work,” the Minister told ABC today.

“Sometimes negotiations take a little longer than you want.

“But the Treasurer continues with those negotiations.”

Farmers want parliament to extend sitting until it passes the Bill.

The National Farmers Federation said the Senate had made them feel like pawns in a political game, and the livelihood of farmers were at stake.

Independent Senator Nick Xenophon has warned parliament would be a “national laughing stock” if the tax rate wasn’t resolved by today.