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Government agrees to set backpacker tax at 15% – politics live | Government agrees to set backpacker tax at 15% – politics live |
(35 minutes later) | |
12.03am GMT | |
00:03 | |
Nick Xenophon is coming up at 11.15am. | |
12.02am GMT | |
00:02 | |
Before getting distracted by backpackers tax, I promised the full detail of the new Wong motion. As you can see, Labor is trying to extract specific details on George Brandis. | |
I move that – | |
That— | |
(1) the Senate requires the Attorney-General to attend the Chamber at 12 noon today; and | |
(2) at 12 noon business be interrupted to enable the Attorney-General (Senator Brandis) to attend the Chamber; to provide the Senate with a full explanation of his actions with respect to the Bell Group litigation including; | |
(a) any discussions he had with the Government of Western Australia relating to this litigation and the Western Australian Bell Group Companies (Finalisation of Matters and Distribution of Proceeds) Amendment Bill 2016, | |
(b) any discussions he had with Prime Minister Turnbull, former Prime Minister Abbott, Treasurer Morrison, former Treasurer Hockey, the Minister for Finance (Senator Cormann), the Minister for Revenue and Financial Services (Ms O’Dwyer), or the Minister for Social Services (Mr Porter), or any other minister relating to the litigation or the West Australian legislation; | |
(c) any directions he gave to the former Solicitor-General in relation to this matter, | |
(3) at the conclusion of the explanation any senator may move to take note of the explanation. | |
11.59pm GMT | |
23:59 | |
The Xenophon amendment allows those on welfare to earn $5000 before losing money. This measure allows people to do seasonal work without losing money and having the administrative nightmare of going off welfare and back on for a month’s work. It is designed to ensure more Australians take up seasonal work. | |
Backpacker tax breakthrough: Great news for Aussie job seekers too, as govt backs NXT plan to allow them to earn up to $5k without penalty. | |
11.55pm GMT | |
23:55 | |
One more point to note about this backpacker debacle. | |
While the headline rate of the tax - if passed - is 15%, it is actually closer to 24%. | |
Why? | |
Because the savings measures already passed to pay for the shortfall include a 95% tax rate on the 9% superannuation paid for by growers on behalf of backpackers. That ensures that the lot - the full 9% - will go to government. Which backpacker will bother applying to claim 5% of their super when they leave? | |
Growers are pretty cranky about this and it has not gone unnoticed. | |
11.51pm GMT | |
23:51 | |
Q: How much responsibility do you wear for this? You are falling in now behind the 15% and it was 19 before. Do you bear some of that responsibility? | |
Sarah McKinnon of the NFF: | |
I think what we bear responsibility for is bringing this issue to the parliament for debate. What we have always said is we will support 19% or a lower rate if it can get through the parliament. There is no point supporting a rate that can’t get through the parliament because what we end up with is ongoing games and uncertainty. We welcome the compromise. It is a position which reflects our position which has been the case since March this year. | |
Updated | |
at 12.03am GMT | |
11.49pm GMT | |
23:49 | |
The National Farmers’ Federation’s workplace relations manager, Sarah McKinnon, says the NFF supported a figure of between 15% and 19% in March this year. | |
I want to put this issue to bed once and for all. We need to be able to get the message out there to the backpacker community, that we have fought hard for them and delivered a fair rate and we very much want them to come to the farm and stick around. Anyone who is thinking about packing up and going home to Christmas, let us say to you now, don’t do that, think about the great experience you can have over the next 12 months. Stick around because you are welcome. | |
Updated | |
at 12.02am GMT | |
11.45pm GMT | |
23:45 | |
Joel Fitzgibbon has been pressed on his claim that backpacker numbers will drop off at the 15% rate. He says if the rate is lower, more will be likely to come. | |
We run on instinct – of course we do. It is a commonsense thing. | |
Updated | |
at 12.03am GMT | |
11.42pm GMT | |
23:42 | |
Anthony Albanese: | |
The tourism sector got a double whammy, because the tourism sector was also hit by the increase of the passenger movement charge. That happened in exactly the same format as the backpacker tax. No modelling, no consultation with the sector, and last Thursday we saw on the floor of the Senate a motion of amending the legislation on the passenger movement charge, handed to the One Nation senators, written by the government which then it was ruled by the clerks that they couldn’t actually move on the floor of the Senate. | |
On the passenger movement charge, Albo is talking about Hanson’s stated amendment that the PMC should be frozen for five years. She insisted on that change in return for her support for a $5 increase. | |
Albo is simply pointing out – as Penny Wong did on Thursday – that writing a freeze into the PMC bill doesn’t change anything, given that a new bill could simply increase it anyway. | |
Updated | |
at 11.51pm GMT | |
11.37pm GMT | |
23:37 | |
Labor will not support the 15% backpacker tax | |
Chris Bowen, Anthony Albanese and Joel Fitzgibbon are doing a press conference to announced their position. | |
So the Labor party will maintain its position on the 10.5%. If the government had come to us to try to reach the settlement, we would have been happy to hear their arguments. The treasurer, in a performance which was petulant even for him, said the Labor party could go jump and he is clearly not interested in a proper and sensible discussion in this 45th parliament. | |
Updated | |
at 11.51pm GMT | |
11.34pm GMT | |
23:34 | |
A quick dirty history of the backpacker tax | |
Just for the hell of it, let’s quickly recap the bare bones of the backpacker tax debate. | |
Updated | |
at 11.50pm GMT | |
11.17pm GMT | 11.17pm GMT |
23:17 | 23:17 |
Backpacker tax would never be 32%. We fought to take it to 19%. We said it would be resolved by Christmas. Welcome 15% break-through. | Backpacker tax would never be 32%. We fought to take it to 19%. We said it would be resolved by Christmas. Welcome 15% break-through. |
This statement is very confusing, given the government announced a backpacker tax rate of 32.5% in the 2015 budget. | This statement is very confusing, given the government announced a backpacker tax rate of 32.5% in the 2015 budget. |
Does Barnaby mean that the preferred government tax rate of 32.5 was never going to succeed? | Does Barnaby mean that the preferred government tax rate of 32.5 was never going to succeed? |
Or does he mean that in his head, it was not 32.5%, even though it was 32.5% in the budget documents? | Or does he mean that in his head, it was not 32.5%, even though it was 32.5% in the budget documents? |
I am very confused. | I am very confused. |
11.12pm GMT | 11.12pm GMT |
23:12 | 23:12 |
The Senate is now on to ABCC. | The Senate is now on to ABCC. |
There are 21 speakers – at 20 minutes each – listed on the ABCC bill so it should go all morning. | There are 21 speakers – at 20 minutes each – listed on the ABCC bill so it should go all morning. |
Updated | Updated |
at 11.19pm GMT | at 11.19pm GMT |
11.11pm GMT | 11.11pm GMT |
23:11 | 23:11 |
The Greens senator Nick McKim says he still believes there should be a Senate inquiry. | The Greens senator Nick McKim says he still believes there should be a Senate inquiry. |
The LNP senator Ian Macdonald says as deputy of the legal and constitutional affairs committee, he and the other Liberal senators would not have the time to attend. | The LNP senator Ian Macdonald says as deputy of the legal and constitutional affairs committee, he and the other Liberal senators would not have the time to attend. |
To which, there is heckling from Labor: | To which, there is heckling from Labor: |
Labor may not understand that Coalition senators work. It will be a Labor Greens committee and will have no credibility at all. | Labor may not understand that Coalition senators work. It will be a Labor Greens committee and will have no credibility at all. |
Updated | Updated |
at 11.20pm GMT | at 11.20pm GMT |