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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)
12.39am GMT
00:39
Hinch says the tone from the government in negotiations has been good. He is on everyone’s call list, including employment minister Michaelia Cash, Malcolm Turnbull and opposition leader Bill Shorten.
12.37am GMT
00:37
Hinch is holding out on the so-called clause 11, that is:
If you have signed [enterprise bargaining agreements] with the unions from April 2014 that clash with the code, then you will not get government contracts.
Hinch does not like the retrospective nature of that code.
By the way, the “building code” governs the rules for government contracts – as I understand.
Updated
at 12.39am GMT
12.33am GMT
00:33
Senator Derryn Hinch tells reporters he needs more time on the ABCC bill – another 24 hours, perhaps.
He wants sanctions on employers who breach worker safety laws.
If you are getting tough on unions, you have to get tough on the bosses as well.
Updated
at 12.39am GMT
12.30am GMT
00:30
We do know that Nick Xenophon wants more water for South Australia but I am still not clear on the details of what the Xenophon team actually wants.
He is asked whether the plan would be “something less than the 450 gigalitres”. Is that the case?
I think you are jumping to conclusions. The plan is the plan. The plan had mechanisms in place to achieve that through water-efficiency measures, but before that, there is up to 650 gigalitres in water savings that can be achieved where you can show that you can achieve an environmental benefit and that involves projects such as the Menindee Lakes, the weir on the border of NSW and Victoria. These are big water-saving mergers that need to involve the cooperation of those states, but I would have thought Menindee Lakes, if it is done in a way that takes into accounts the concerns of the Broken Hill community could work effectively.
I am not much clearer on the Xenophon wishlist.
Updated
at 12.38am GMT
12.24am GMT
00:24
@FedNatDirector @The_Nationals Scott Mitchell has been an outstanding Director of @The_Nationals and a key part of the Coalition team. Wish you well mate! #auspol
12.22am GMT
00:22
Xenophon says he is still talking to the government about the ABCC bill. He says the odds for the ABCC are 50-50 at the minute.
Updated
at 12.23am GMT
12.22am GMT
00:22
Nick Xenophon and his fellow MP Rebekha Sharkie are talking about the welfare trial – worth $30m – to allow welfare recipients to earn up to $5,000 before their benefits cut out.
They hope it will open up a new pool of workers.
Updated
at 12.28am GMT
12.20am GMT
00:20
The federal director of the National party, Scott Mitchell, is stepping down.
With the dust now settled on the Federal election I have today advised the Federal Management Committee and the Parliamentary Party Room of The Nationals that I intend to step down as Federal Director in early 2017.
It has been a privilege to be Federal Director for almost five years and Campaign Director for the past two Federal elections. These were historic elections where The Nationals played a significant role – in 2013, under the leadership of Warren Truss, defeating the Rudd Labor Government, and in 2016, under the Leadership of Barnaby Joyce, ensuring the re-election of the Coalition.
At both elections we gained seats, which led to increased representation in the Coalition Ministry.
I have been honoured to work closely with two Nationals Leaders in Warren and Barnaby and I thank them both for their support and friendship. I have also been privileged to work closely with two Prime Ministers in Tony Abbott and Malcolm Turnbull.
There are many people to thank, including State Directors, particularly Nathan Quigley, Lincoln Folo, Brad Henderson, Sally Branson and Jamie Forsyth. I also thank Mike Sexton, Peter Langhorne, Frank Jackson, Darcy Tronson, John Griffin, my Campaign Headquarters Teams, and my team in the Federal Secretariat. I also wish to acknowledge the late, David Whitrow.
Like both the Liberal Party counterparts with whom I have worked, I am a strong Coalitionist, and I want to thank Tony Nutt, and Brian Loughnane for the exceptional working relationships that we achieved and enjoyed in the interest of delivering strong Coalition government to the people of Australia.
I wish to thank my Executive of Larry Anthony, Dexter Davies, John Sharp, Ann McKenzie and past Federal Presidents Christine Ferguson and John Tanner as well as the Federal Parliamentary Party and particularly Mark Coulton MP.
I also thank our many grass roots members, who work anonymously for the good of the nation, and without whom the party would not exist.
I wish my successor all the best.
I am departing this job in the knowledge that The Nationals are in a strong position to do well at the next election and keep Australia in the safe hands of a Coalition government.
I wish The Nationals all the very best for the future and I look forward to pursuing new opportunities in 2017.
Updated
at 12.29am GMT
12.17am GMT
00:17
High-stakes negotiations.
Thanks to the new rules in the Senate, readers now get a sense of what goes on away from speaker with the call.
Updated
at 12.30am GMT
12.08am GMT
00:08
High noon.
Updated
at 12.13am GMT
12.06am GMT
00:06
Christmas cheer between Scott Morrison and Pauline Hanson:
Q to Morrison: She spoke to you yesterday, how did that conversation go?
It was a convivial and warm conversation, as my conversations with Pauline Hanson are, I wished her a merry Christmas, as she did me.
12.03am GMT12.03am GMT
00:0300:03
Nick Xenophon is coming up at 11.15am.Nick Xenophon is coming up at 11.15am.
12.02am GMT12.02am GMT
00:0200:02
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. Before getting distracted by backpackers tax, I promised the full detail of the new Penny Wong motion. As you can see, Labor is trying to extract specific details on George Brandis.
I move that –I move that –
That— That —
(1) the Senate requires the Attorney-General to attend the Chamber at 12 noon today; and(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;(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,(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;(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,(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.(3) at the conclusion of the explanation any senator may move to take note of the explanation.
Updated
at 12.14am GMT
11.59pm GMT11.59pm GMT
23:5923:59
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. The Xenophon amendment allows those on welfare to earn $5,000 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.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.
UpdatedUpdated
at 12.03am GMT at 12.09am 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
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.
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?
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.
11.12pm GMT
23:12
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.
Updated
at 11.19pm GMT
11.11pm GMT
23:11
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.
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.
Updated
at 11.20pm GMT