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Senate votes down 15% backpacker tax after passing ABCC bill – politics live Senate votes down 15% backpacker tax after passing ABCC bill – politics live
(35 minutes later)
12.38am GMT
00:38
Chris Bowen, Anthony Albanese and Joel Fitzgibbon are speaking about the backpacker tax rate.
Bowen:
A few moments ago, the Senate voted against a backpacker tax rate of 15%and voted for a backpacker tax rate of 10.5%. It’s also important to remember how we got here. . We gothere because of the Government’s lack of consultation.
We got here because of the government’s arrogance. Again on Monday, Scott Morrison and I quote in a very immature contribution, said “the LaborParty can go jump.”
He wasn’t interested in talking to the Labor Party about a sensible solution, wasn’t interested in a sensible bipartisan consensus.
He said, “the Labor Party can go jump. We don’t need the Labor Party to get this sorted.”
Well, that has been shown now to be utterly untrue. The solution here is very simple: Scott Morrison should swallow his pride.
He should walk into the house of representatives this afternoon and accept the will of the Parliament that the backpacker tax rate should be 10.5% to make it competitive with New Zealand.
The solution is right there before the government. If they could put aside their arrogance and incompetence for a moment and accept the solution of 10.5%, then Australia’s farmers, horticulturalists, growers and the tourism sector could get the certainty they need.
Updated
at 12.39am GMT
12.35am GMT
00:35
Pride comes before...
a fall.
Updated
at 12.39am GMT
12.24am GMT
00:24
Just briefly, there is some confusion on the ABCC bill vote.
Following the demise of Bob Day, the government needs eight of the 10 crossbenchers to pass legislation.
The ABCC bill passed with support of
Opposed were:
But the vote was 36-33, I hear you cry?
There were three pairs - which means both sides agreed to three people on each side being out of the chamber.
Government votes are 39 - 3 pairs = 36
Labor votes are 36 - 3 pairs = 33.
12.15am GMT
00:15
The Senate moves on to the vocational education and training loans bills.
Updated
at 12.21am GMT
12.14am GMT
00:14
Passenger movement charge increase from $55 to $60 passes the Senate 33-32.
Updated
at 12.16am GMT
12.12am GMT
00:12
And my ABC friend and rural affairs reporter:
So.Do we have a #backpackertax resolution?No.#auspol
12.09am GMT
00:09
Just on the 10.5% rate, my Weekly Times friend notes:
Hinch has sided with Labor - after consistently stating he backed 19 per cent, then 15 per cent #auspol #backpackertax
12.08am GMT
00:08
Senate now voting on the $5 increase on the passenger movement charge designed to pay for the backpacker tax changes.
Will we see another cunning ploy?
12.05am GMT
00:05
Cormann says Labor will wear backpacker tax like "a rose of crowns". Think that should be "crown of thorns". #auspol
12.05am GMT
00:05
Mathias Cormann says Labor and the crossbenchers have hurt farmers
So to be clear, now Labor and crossbenchers have supported a 10.5% backpacker tax rate.
It has succeeded in the senate.
Finance minister Mathias Cormann says the government will not confirm 10.5% in the lower house so the tax will revert to 32.4%.
He characterises the Labor move as a “cunning ploy”.
12.00am GMT12.00am GMT
00:0000:00
Government is defeated on 15% backpacker tax, Labor amends back to 10.5%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%The Senate has just voted 35-32 to support Labor’s proposed Backpackers tax of 10.5%
In favour were:In favour were:
This rejects the 15% agreed between the Govt and Hanson and reinstates the 10.5% agreed by the Senate last week.This rejects the 15% agreed between the Govt and Hanson and reinstates the 10.5% agreed by the Senate last week.
11.58pm GMT11.58pm GMT
23:5823:58
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.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.
UpdatedUpdated
at 12.02am GMTat 12.02am GMT
11.57pm GMT11.57pm GMT
23:5723:57
So Labor effectively trying to reverse the Pauline Hanson deal for 15%.So Labor effectively trying to reverse the Pauline Hanson deal for 15%.
11.57pm GMT11.57pm GMT
23:5723:57
Senate is voting on the Labor amendment to set the backpackers tax at 10.5%, as agreed to by the Senate last week.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 GMT11.54pm GMT
23:5423:54
Re backpackers, this is interesting from a former immigration department policy dude.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? BundabergPostcode with most backpackers working for 2nd visa in '15-16? Bundaberg Postcode in Oz with most Newstart recipients at June '16? Bundaberg
11.48pm GMT11.48pm GMT
23:4823:48
The Greens are trying to amend the backpacker savings measure, which taxes backpackers’ superannuation at 95% when they leave the country.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).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 ...I am not really clear how they can amend the superannuation measure which already passed last week ...
UpdatedUpdated
at 11.53pm GMTat 11.53pm GMT
11.42pm GMT11.42pm GMT
23:4223:42
Senate begins debate on the backpacker taxSenate begins debate on the backpacker tax
And the Senate is on to the backpacker tax to 15%.And the Senate is on to the backpacker tax to 15%.
The Greens senator Peter Whish-Wilson leads the debate.The Greens senator Peter Whish-Wilson leads the debate.
This bill before us is bad policy.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).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.These are some of the lowest-paid workers in Australia that fulfil an important role for industry.
UpdatedUpdated
at 11.53pm GMTat 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
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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
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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
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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 GMT
23:21
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”.
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.
Updated
at 11.31pm GMT
11.14pm GMT
23:14
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.
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.
Updated
at 11.27pm GMT
11.12pm GMT
23:12
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?
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.
Updated
at 11.27pm GMT
11.10pm GMT
23:10
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:
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.
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.
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.
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.
Updated
at 11.26pm GMT
10.54pm GMT
22:54
Government to force ABCC and backpackers's tax through Senate
The Senate and lower house are sitting.
The Senate is debating hours. Senate leader George Brandis has moved:
(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:
(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.
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?
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.
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.
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.
Updated
at 11.06pm GMT