Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer, and I refer to the Treasurer's claim in question time that a 32½ per cent backpacker tax was introduced in the 2012 budget. If that is true, why was no revenue raised from backpackers' tax in 2013, 2014 or 2015?

Ms Henderson interjecting—

Mr Irons interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Corangamite and the member for Swan.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Isn't the real truth that this government introduced a 32½ per cent backpacker tax in the 2015 budget?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for his question. The change to the non-resident tax rate of 32½ per cent was introduced by the member for Lilley, given, as case law has demonstrated, backpackers are nonresidents for tax purposes. The revenue that was put in that budget for 2012-13—to go to the member's question—was $19.3 billion in 2012-13, $22.2 billion in 2013-14, and $22.2 billion in 2014-15 and $25.2 billion in 2015-16.

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Treasurer will resume his seat. The member for McMahon on a point of order?

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

On direct relevance, Mr Speaker: the Treasurer should admit that none of that money came from backpackers in Australia!

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for McMahon will resume his seat. The Treasurer has the call.

Ms Henderson interjecting—

The member for Corangamite is now warned. The Treasurer has the call.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The 32½ per cent rate which applies to nonresidents, as a result of case law applies to backpackers—that is what the tax office has said very clearly in their own statements. And the non-resident tax rate which now applies was set by the member for Lilley, and he claimed more than $80 billion in revenue in that budget. Now when it became clear that this is what had transpired, the government sought to give certainty to these arrangements, and we still seek to give certainty to these arrangements, and those opposite continue to frustrate by coming up with any rate of tax that they can pull out of a lucky-dip bag with other senators on the crossbench. That is not the way to run a tax policy. We heard earlier that the shadow Treasurer just makes up policy as he goes along and then he says, 'Well, we try and make sure that it costs less than what the government does,' and we know that his plan for Australia is a budget deficit which is $16.8 billion higher, and that is after he has stripped away the company tax cuts to small and medium-sized businesses—that is after he has put more taxes on hardworking Australians who want to go and save for their future and invest for their children.

Tony Smith (Speaker) Share this | Link to this | Hansard source

The Treasurer will resume his seat. Just before I call the Manager of Opposition Business, there has already been a point of order on relevance. Is there a point of order on—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Speaker, I am seeking leave to move the following motion—

Tony Smith (Speaker) Share this | Link to this | Hansard source

No, the Manager of Opposition Business will resume his seat.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

I am seeking leave.

Tony Smith (Speaker) Share this | Link to this | Hansard source

No, he can seek leave at the end of the Treasurer's answer.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

I have been given the call—

Tony Smith (Speaker) Share this | Link to this | Hansard source

No, I did not give you the call. No, the Manager of Opposition Business will resume his seat. No, we are not going to operate that way. I could have very easily just not called the Manager of Opposition Business, given there had already been a point of order. I asked if there was another point of order.

Mr Burke interjecting—

No, I am not going to give you the call.

Mr Dutton interjecting—

The minister for immigration will cease interjecting. The Treasurer will conclude his answer and then I will give the call to my left.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The point I was making is that those opposite are proposing a higher level of deficit—$6.8 billion more—and that is after they have increased taxes on hardworking Australians who are investing for their future, after they have ripped tax cuts away from small businesses, with some 22 employees on average, some 100,000 of them, who want to get access to the instant asset write-off, who want to get access to a tax rate of 27½. I note those opposite get very excited about the tax rates for foreign workers in New Zealand, but when it comes to the tax rates for businesses in New Zealand, at 28 per cent, they think that Australian businesses should pay more. That is what those opposite think. They think that Australian businesses should pay more tax, so that that mob opposite, if they were ever to become elected to the Treasury benches again, could spend more, raise the deficit more, increase the debt and be the absolute AAA threat to our AAA rating. (Time expired)