Backpacker tax: Andrew Broad backs rate of 15 per cent

VICTORIAN Nationals MP Andrew Broad says he would support a 15 per cent backpacker tax.

VICTORIAN Nationals MP Andrew Broad says he would support a 15 per cent backpacker tax.

And Parliament should not adjourn until the tax is appropriately dealt with, the Mallee MP said.

Mr Broad — who was the first Government MP to publicly condemn the original 32.5 per cent tax rate in February this year — is now the first to publicly break ranks over the current stalemate.

Andrew Broad. Picture: Kym Smith

He today told The Weekly Times that after a weekend of reflection on his farm, he would support a tax rate of 15 per cent or above.

“At 15 per cent with some adequate compliance, the Government will easily raise the $760 million logged in the forward estimates from the backpacker tax,” he said.

“Parliament mustn’t adjourn until we deal with it, the politicians cannot go into a Christmas break with a tax rate of 32.5 per cent — this would undermine workers for horticulture.”

The Government so far has held firm to its 19 per cent tax rate, arguing it has already compromised by bringing it down from 32.5 per cent.

Labor, the Greens and One Nation last week backed Tasmanian senator Jacqui Lambie’s call to lower the tax further to 10.5 per cent.

The amendment was rejected in the House of Representatives, and the bill will now return to the Senate this week — the final sitting week of the year, and the final chance to get a resolution.

If the stalemate continues, the tax rate will remain 32.5 per cent from January 1.

One Nation has indicated it would consider supporting a tax rate between 10.5 and 15 per cent.

Mr Broad also welcomed the plans put forward by Nick Xenophon and agreed to by the Government, that unemployed young people will be able to earn $5000 a year doing seasonal harvest work without it affecting their dole payments.