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Nick Xenophon wins building watchdog changes to favour Australian-made – politics live Senate votes down 15% backpacker tax after passing ABCC bill – politics live
(35 minutes later)
12.00am GMT
00:00
Government is defeated on 15% backpacker tax, Labor amends back to 10.5%
The Senate has just voted 35-32 to support Labor’s proposed Backpackers tax of 10.5%
In favour were:
This rejects the 15% agreed between the Govt and Hanson and reinstates the 10.5% agreed by the Senate last week.
11.58pm GMT
23:58
If successful, the tax would go to 10.5%, against the wishes of the lower house. Which would mean it would punt back down to the House.
Updated
at 12.02am GMT
11.57pm GMT
23:57
So Labor effectively trying to reverse the Pauline Hanson deal for 15%.
11.57pm GMT
23:57
Senate is voting on the Labor amendment to set the backpackers tax at 10.5%, as agreed to by the Senate last week.
11.54pm GMT
23:54
Re backpackers, this is interesting from a former immigration department policy dude.
Postcode with most backpackers working for 2nd visa in '15-16? Bundaberg Postcode in Oz with most Newstart recipients at June '16? Bundaberg
11.48pm GMT
23:48
The Greens are trying to amend the backpacker savings measure, which taxes backpackers’ superannuation at 95% when they leave the country.
Peter Whish-Wilson says that will ensure the tax rate really is 15% instead of 24% (given the government is taking all of the backpackers’ superannuation).
I am not really clear how they can amend the superannuation measure which already passed last week ...
Updated
at 11.53pm GMT
11.42pm GMT
23:42
Senate begins debate on the backpacker tax
And the Senate is on to the backpacker tax to 15%.
The Greens senator Peter Whish-Wilson leads the debate.
This bill before us is bad policy.
He says it is not a reduction in the tax rate from 32.5% because, effectively, most backpackers were claiming resident status, which means they were paying no tax (because of the tax-free threshold).
These are some of the lowest-paid workers in Australia that fulfil an important role for industry.
Updated
at 11.53pm GMT
11.40pm GMT
23:40
ABCC passes the Senate 36-33
The Australian Building and Construction Commission bill – dated 2013 – has passed the Senate.
Updated
at 11.45pm GMT
11.39pm GMT
23:39
FYI from our friends at AAP:
Lucy Turnbull has quit as a director of the independent thinktank the Grattan Institute.
The prime minister’s wife, who is a former Sydney lord mayor and business executive, has been on the board since December 2012.
The resignation is noted on Malcolm Turnbull’s parliamentary pecuniary interest register.
Updated
at 11.45pm GMT
11.37pm GMT
23:37
Bowers is running ...
Updated
at 11.45pm GMT
11.37pm GMT
23:37
Australian Building and Construction Commission final vote on now
Ring the bells for one minute.
This is the third reading vote – that all the amendments be agreed to.
Updated
at 11.45pm GMT
11.32pm GMT
23:32
Scott Morrison says there was no deal on Bell litigation: "these matters preceded my time"
The treasurer has been pressed on what he knew about the Bell litigation and any allegations of a deal between the commonwealth and the Western Australian government as to which government would get $300m in revenue.
These questions by Andrew Probyn who, with Shane Wright, broke open this story on an alleged commonwealth-WA deal in the West Australian.
Q: When you became treasurer at what stage were you told or informed, perhaps by Dr Nahan himself, that he had an arrangement with your predecessor. He thinks it was an agreement whereby the commonwealth would not interfere in the Bell legislation?
[WA treasurer] Mike Nahan has never raised these issues with me.
Q: Not once?
No.
Q: In writing, verbally or nothing?
No, it has never been a topic of conversation between Mike Nahan. The matters have been set out by minister O’Dwyer and the attorney general set out clearly my understanding of these matters and how they have been advised to me. These matters preceded my time.
What I do know is if there was a view that there was such an arrangement, the letter that was sent by the former treasurer back to WA made it pretty clear there wasn’t.
Q: Can I ask when did you first know of that expectation or belief that there was ...
Only when these matters were raised publicly.
Q: When was this?
Not that long ago.
Updated
at 11.38pm GMT
11.21pm GMT11.21pm GMT
23:2123:21
Scott Morrison does not expect a backlash from petroleum companies (a la the mining companies and the mining tax). He has met them all and they have shown “a willingness to address the issues”.Scott Morrison does not expect a backlash from petroleum companies (a la the mining companies and the mining tax). He has met them all and they have shown “a willingness to address the issues”.
Q: Is that a concession there is a revenue problem this country faces as well as a spending problem?Q: Is that a concession there is a revenue problem this country faces as well as a spending problem?
No, what it says is it is consistent with everything I have said as Treasurer. You need to ensure the integrity and sustainability of your tax base. No, what it says is it is consistent with everything I have said as treasurer. You need to ensure the integrity and sustainability of your tax base.
Updated
at 11.31pm GMT
11.14pm GMT11.14pm GMT
23:1423:14
Scott Morrison says allegations that the government is missing out on massive amounts of revenue are “aggressive” and assume none of the deductions are legitimate. He says the government has to get the balance right, which is why the review is necessary.Scott Morrison says allegations that the government is missing out on massive amounts of revenue are “aggressive” and assume none of the deductions are legitimate. He says the government has to get the balance right, which is why the review is necessary.
I wouldn’t want to create the expectation that, in the short term, when it comes to the PRRT, that this would lead to any significant change in the revenues over the budget and forward estimates.I wouldn’t want to create the expectation that, in the short term, when it comes to the PRRT, that this would lead to any significant change in the revenues over the budget and forward estimates.
UpdatedUpdated
at 11.27pm GMTat 11.27pm GMT
11.12pm GMT11.12pm GMT
23:1223:12
Q to Morrison: Is there an allegation or claim that these resource companies are gold-plating investment so that they can therefore claim greater deductions which then means less revenue?Q to Morrison: Is there an allegation or claim that these resource companies are gold-plating investment so that they can therefore claim greater deductions which then means less revenue?
When you get an uplift on the bond rate for your deductible expenses, that of itself ensures you get a large well of deductions that build up and can be applied against future projects. I am aware of those allegations. The government is not buying into the argument about those allegations.When you get an uplift on the bond rate for your deductible expenses, that of itself ensures you get a large well of deductions that build up and can be applied against future projects. I am aware of those allegations. The government is not buying into the argument about those allegations.
UpdatedUpdated
at 11.27pm GMTat 11.27pm GMT
11.10pm GMT11.10pm GMT
23:1023:10
The treasurer, Scott Morrison, is announcing a review into the petroleum resources rent tax (PRRT). Gareth Hutchens has been following this story. Here is a bit of context from his previous story:The treasurer, Scott Morrison, is announcing a review into the petroleum resources rent tax (PRRT). Gareth Hutchens has been following this story. Here is a bit of context from his previous story:
Australia is set to blow another resources boom, forgoing billions of dollars in potential tax revenue, because its tax regime is failing to collect adequate revenue from the explosion in liquefied natural gas exports, according to a new analysis.Australia is set to blow another resources boom, forgoing billions of dollars in potential tax revenue, because its tax regime is failing to collect adequate revenue from the explosion in liquefied natural gas exports, according to a new analysis.
The Turnbull government and Labor are now being lobbied to set up a parliamentary inquiry to investigate why the petroleum resource rent tax (PRRT) is collecting so little revenue.The Turnbull government and Labor are now being lobbied to set up a parliamentary inquiry to investigate why the petroleum resource rent tax (PRRT) is collecting so little revenue.
ScoMo is announcing the terms of reference for review into the PRRT. He identifies the problem.ScoMo is announcing the terms of reference for review into the PRRT. He identifies the problem.
What has occurred since 2012/13 is a halving in PRRT revenues down to $800m. In addition to that, the crude oil excise collections have fallen by more than half. This is a matter that the government has been well aware of for some time and in September of this year, I instructed ... Treasury to begin work on preparing options.What has occurred since 2012/13 is a halving in PRRT revenues down to $800m. In addition to that, the crude oil excise collections have fallen by more than half. This is a matter that the government has been well aware of for some time and in September of this year, I instructed ... Treasury to begin work on preparing options.
The review will be led by Michael Callaghan AM, a former Treasury official.The review will be led by Michael Callaghan AM, a former Treasury official.
After he instructed Treasury, Morrison had meetings with the Australian Tax Office, the Australian Petroleum Production and Exploration Association, BP, Woodside and the Tax Justice Network.After he instructed Treasury, Morrison had meetings with the Australian Tax Office, the Australian Petroleum Production and Exploration Association, BP, Woodside and the Tax Justice Network.
This is an issue people understand exists and the decline in those revenues can be put down to any number of matters, particularly the decline in production as existing projects come to the end of their lives, the subdued outlook for oil and gas prices and large amounts of deductible expenditures from the recent mining investment boom.This is an issue people understand exists and the decline in those revenues can be put down to any number of matters, particularly the decline in production as existing projects come to the end of their lives, the subdued outlook for oil and gas prices and large amounts of deductible expenditures from the recent mining investment boom.
UpdatedUpdated
at 11.26pm GMTat 11.26pm GMT
10.54pm GMT10.54pm GMT
22:5422:54
Government to force ABCC and backpackers's tax through SenateGovernment to force ABCC and backpackers's tax through Senate
The Senate and lower house are sitting.The Senate and lower house are sitting.
The Senate is debating hours. Senate leader George Brandis has moved:The Senate is debating hours. Senate leader George Brandis has moved:
(a) the hours of meeting shall be 9.30 am to adjournment; and(a) the hours of meeting shall be 9.30 am to adjournment; and
(b) if by 12.45 pm the following bills have not been finally considered:(b) if by 12.45 pm the following bills have not been finally considered:
(i) the routine of business from not later than 7.20pm shall be government business only, and(i) the routine of business from not later than 7.20pm shall be government business only, and
(ii) the Senate shall adjourn without debate after it has finally considered the bills listed above, or a motion for the adjournment is moved by a minister, whichever is the earlier.(ii) the Senate shall adjourn without debate after it has finally considered the bills listed above, or a motion for the adjournment is moved by a minister, whichever is the earlier.
Penny Wong suggests this is effectively a guillotine. Because if the Senate does not vote by 12.45pm it will sit tonight until it is dealt with. Kinda like – you are not leaving the table until you eat all your dinner.Penny Wong suggests this is effectively a guillotine. Because if the Senate does not vote by 12.45pm it will sit tonight until it is dealt with. Kinda like – you are not leaving the table until you eat all your dinner.
Do you want to talk about this, George?Do you want to talk about this, George?
Manager of government business Mitch Fifield gets up and in his calm way, suggests this is totally reasonable and thanks the “various groupings” for their shared responsibility in managing the Senate.Manager of government business Mitch Fifield gets up and in his calm way, suggests this is totally reasonable and thanks the “various groupings” for their shared responsibility in managing the Senate.
The various groupings in the Senate did facilitate the non-contro legislation … it is unlike previous governments (Labor) when 54 bills were guillotined in rapid succession with no opportunity to debate.The various groupings in the Senate did facilitate the non-contro legislation … it is unlike previous governments (Labor) when 54 bills were guillotined in rapid succession with no opportunity to debate.
Greens senator Rachel Siewert says it is bollocks. (My word, not hers).Greens senator Rachel Siewert says it is bollocks. (My word, not hers).
When you talk about shared responsibility, talk to the other hand because you made no effort … hence chaos is the result.When you talk about shared responsibility, talk to the other hand because you made no effort … hence chaos is the result.
The Senate is now arguing about how long they should argue about the ABCC bill because they have not enough time to argue about the ABCC bill.The Senate is now arguing about how long they should argue about the ABCC bill because they have not enough time to argue about the ABCC bill.
UpdatedUpdated
at 11.06pm GMTat 11.06pm GMT
10.41pm GMT
22:41
Unleash the Cash.
Unleash the Cash II.
10.36pm GMT
22:36
“DON’T GIVE ANYTHING MORE AWAY” Doug Cameron to Nick Xenophon
*Read with Scottish accent*
10.31pm GMT
22:31
Nick Xenophon team has extra 450GL in writing as per Murray Basin Plan
NXT MP for Mayo Rebekha Sharkie talked to the ABC about her party’s deal on the Murray Darling plan. At issue is the extra 450GL included in the plan but effectively nixed by Barnaby Joyce in a fight with the South Australian water minister.
Q: NXT went from demanding 450 gigalitres of water flows to SA to suddenly not seeking that guarantee. What changed his mind?
Well, that’s actually not true. We are still seeking the 450 gigalitres and how we are doing that is firstly we were negotiating with our State Labor Premier and the PM to have in writing from the PM that the plan would be delivered in full and on time.
We received that from the PM, but also some extra assurances. So COAG will now be involved so the first ministers of state, including our Premier, will be involved in the implementation of the Murray-Darling Basin plan, and importantly, we will have two Senate days per year where the plan will be forensically scrutinised, and so it is about giving the assurances that the 450 gigalitres will be delivered by 2024 as per the plan.
Q: But where are the assurances in writing? I can’t see anywhere in that agreement where there is a commitment to SA, your state and many parts of SA needing that water, getting that 450 gigalitres?
Well, we have assurances from the PM in writing that the plan will be delivered on time and...
Q: But not the 450 gigalitres, excuse me for interrupting?
That is part of the plan that will get delivered between now and 2024.
Q: You have that in writing, have you. The 450 gigalitres?
We have it in writing that it will be on time and in full.
10.10pm GMT
22:10
We are just picking our way through the amendments to the ABCC to work out what they actually mean in practice, as opposed to what their proponents say they mean.
This one did pass from Labor’s Doug Cameron and goes to foreign workers, in line with Labor’s proposed crackdown on 457 visa holders.
Without limiting subsection (1), the Building Code must include provisions ensuring that no person is employed to undertake building work unless:
(a) the position is first advertised in Australia; and
(b) the advertising was targeted in such a way that a significant proportion of suitably qualified and experienced Australian citizen s and Australian permanent residents (within the meaning of the Migration Act 1958 ) would be likely to be informed about the position; and
(c) any skills or experience requirements set out in the advertising were appropriate to the position; and
(d) the employer demonstrates that no Australian citizen or Australian permanent resident is suitable for the job.
10.05pm GMT
22:05
Parliament sits at 9.30am – that is both houses.
The Senate program is yet to appear but these are the bills before the lower house.
This gives you an idea of how far away the end of the week is....
Updated
at 10.13pm GMT
9.55pm GMT
21:55
Take a bow, Bowers.
Updated
at 10.04pm GMT
9.54pm GMT
21:54
Derryn Hinch has been talking at the Senate doors.
He said changes to the ABCC bill, including sham contractors, more protection for subcontractors, and retrospectivity, were very important.
Hinch says because the original ABCC bill was drafted in 2013, it meant that workplace agreements signed by unions and contractors would have been thrown out. Hinch and Malcolm Turnbull met yesterday and the prime minister agreed to push the start date out for two years so that existing agreements would expire – rather than renegotiating the lot.
The feature of this round of negotiations in the Turnbull regime is the PM has a bigger role in the deal making than Tony Abbott ever did. And a willingness to compromise. Same with Xenophon and the water deal. Many more soothing words.
Hinch says he is meeting Turnbull again today.
Pragmatism rules OK.
Updated
at 10.05pm GMT
9.37pm GMT
21:37
The other big news around this morning is the ACER report, which shows Australian kids slipping down the rankings. Paul Karp reports:
Australian students’ performance in maths and science has flatlined for the past 20 years and slipped relative to comparable countries, a new report has found.
The 2015 Trends in International Mathematics and Science Study, released by the Australian Council for Educational Research (ACER) late on Tuesday, showed Australia has slipped five spots in both year 8 maths and science.
Australia lags behind 12 and 14 countries in those categories respectively. Australian students in remote areas showed the lowest performance.
The results will feed into a growing debate between the Turnbull government and Labor about the need to deliver the fifth and sixth years of Gonski needs-based education funding, or whether greater targeting of education funding alone is sufficient to boost results.
Now, education minister Simon Birmingham has used the report to show more money is not the answer (though the Gonski report never said it was just more money). Birmingham said it was all about evidence based initiatives.
These new statistics, our Naplan results and other international rankings all show that, despite significant funding growth in Australia, we are not getting sufficient improvements in student outcomes.
Labor’s Tanya Plibersek said the results were for the 2014 school year, when very little of the Gonski money had flowed.
Only around 7% of the six years of Gonski needs-based funding had flowed in 2014. So drawing any link between the TIMSS result and Gonski needs-based funding is completely wrong.
Updated
at 9.37pm GMT
9.20pm GMT
21:20
9.00pm GMT
21:00
Good morning tragics, punks and Christmas fairies,
The Australian Building and Construction Commission bill has emerged from the operating theatre – otherwise known as the Senate – with some fairly radical surgery.
There has not yet been a vote but the government has agreed to changes so we expect a vote today.
Nick Xenophon was at the centre of the changes, showing his characteristic flair for the theatrics. Having resolved the water issue (in his mind but not in others) he went on to slash the ABCC, removing vital organs and adding new ones.
I almost feel like the minister without the pay rise.
But senator Derryn Hinch is also emerging as a key player on the crossbench – a straight talker without the Xen Master’s one liners. With Xenophon, Hinch has pushed hard for security of payments for subcontractors and also to remove the retrospectivity on the building code which would have meant all enterprise bargaining agreements would need to be renegotiated – something that was already causing the first industrial action on building sites at the very thought of it.
Hinch was visibly proud of his changes this morning and proud too that he did not “horse trade” – that is, ask for changes on other bills in return for his vote on the ABCC. He said he negotiated the ABCC on its merits alone.
Unlike other crossbenchers, I can look you in the eye and say I made no deal, there was no horse trading.
With Hinch and Xenophon, the government already had four One Nation votes so – assuming Rod Culleton holds – the government would have the numbers.
(All things liable to change at short notice.)
Paul Karp reports on the details:
The changes to the commonwealth procurement rules (for all procurement, not just in construction) will apply from 1 March 2017. Xenophon described them as “the most significant change to the way the Australian government purchases goods and services that this country has ever seen” (he said a similar thing about whistleblower laws last week).
The changes:
Xenophon said:
Until now, the commonwealth government has been spending $59bn on goods and services without having to consider compliance with Australian standards, employment and environmental regulations, and the broader impact on the economy.
Labor’s Kim Carr has praised the changes to procurement rules but questioned why workers should have to pay the price for them, in reference to the concern the ABCC bill decreases workers’ rights including the ability for unions to organise.
Labor’s Penny Wong said the ABCC bill was “unrecognisable” from the original Abbott ABCC bill. She said it showed how desperate Malcolm Turnbull was to hang on to his leadership.
The reality is there are some good amendments in this bill. We have to wait to see the final details but it would appear to be a much fairer bill than the one that went into the Senate.
Stay with us through the day. I am @gabriellechan and Mike Bowers has filed some fabulous shots from the Senate. The Senate photography rules really have made a difference to what readers can see in the red pit of democracy. Here’s cheers to the Senate for allowing the change. Talk to me in the thread – all tips, heads ups, advice welcome. Or you can have a longer conversation on my Facebook page.
Come blogans, we ride.
Updated
at 9.34pm GMT