House debates

Tuesday, 29 November 2016

Bills

Passenger Movement Charge Amendment Bill (No. 2) 2016; Second Reading

5:15 pm

Photo of Scott MorrisonScott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

The reason that these measures should not be delayed, by the sort of antics we are seeing from the opposition, is that the government has been delivering in all of these areas and should not be further frustrated by pursuing the measures that we are putting before this parliament. In addition to all of that, the streamlined SmartGate traveller processing trials have been put in place for visitors from Hong Kong and China, during 2016, and we have had $719 million provided to the Australian Border Force over six years, including $438.7 million in capital funding. Enhancements to the Australian border protection services commenced in 2014-15, including through improved trade and passenger facilitation, better targeting and interception of illegal trade and travellers through enhanced information communications technology systems and intelligence and enforcement capability, and in strengthening the integrity and capability of the Border Force.

Those opposite, when they were in government, jacked up the passenger movement charge from $37 to $55, and they ripped money out of the Australian Customs and Border Protection Service. We held it constant, since 2012. After we came to government in 2013—there had been no change since 2012—we kept it in that place. We invested back in border protection; we invested back in the services that were being provided at our border to make things more secure. In addition to that, we supported the tourism industry, most recently, through the changes that stemmed from the Financial System Inquiry, where we have abolished, outlawed, excessive surcharging on credit and debit cards.

If you come in at an airport and get into a cab or if you go to a hotel, a concert or anywhere you pay with your credit card, you would have saved many times over what this increase in the passenger movement charge would be imposing on any traveller to Australia. So travellers coming to Australia are already miles ahead when it comes to a decrease in the cost of them moving around the country, enjoying this wonderful country, because the government was actually delivering. We have made one change, and that is to increase the passenger movement charge by $5. For what reason?

Because we gave a commitment at the last election that we would resolve the backpacker tax arrangements by the end of this year and we would do it by ensuring there would be no net cost to the budget. We made that commitment before the election, but we were not the only ones. Those opposite made exactly the same commitment. They said they would deal with this matter without a cost to the budget. So what the government did is we went down the pass and we presented a compromise package which ensured including the passenger movement charge and the superannuation measure that I note the shadow minister previously made reference to.

On the superannuation measure, what he is suggesting is that the superannuation payments to foreign workers should be abolished. Not only do those opposite think foreign workers should pay a lower rate of tax; they also believe they should cost less than Australian workers for those who are employing them. If you do not, as those opposite suggest, actually tax the superannuation and you rid that impost on the employer, then the employer has an incentive to actually employ foreign workers. The united federation of foreign workers union representatives that sit opposite are committed to lower pay for foreign workers over Australian workers and to lower taxes compared to Australian workers.

Australian workers pay on average in their wages some 23.8 per cent. That is what the average full-time wage earner in Australia pays across their entire income—23.8 per cent. What those opposite are saying is that the average tax paid by a foreign worker should be 10.5 per cent. But if you are Australian and you live here all year and you pay taxes all year, you are going to pay 23.8 per cent, and the foreign workers might be here for just six months. Let's give the foreign workers a break, shall we, and make sure that not only do they pay less tax but also the employers pay them less! That is what those opposite are proposing to do with these measures.

What we are seeing from the opposition is more frustration and delay. I think the Leader of the Opposition would be very pleased about that because then the member for Grayndler will be very occupied when it comes to these matters. Once these matters are dealt with, the member for Grayndler will have a bit of time on his hands and he can get back to his other job which involves unsettling and disrupting and removing the Leader of the Opposition.

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