House debates

Thursday, 1 December 2016

Bills

Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016 (No. 2); Consideration of Senate Message

4:19 pm

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

I move:

That the requested amendments be not made.

The government has been working assiduously now for some time to ensure that we can legislate the measures to provide certainty for the taxation arrangements in relation to backpackers. We gave a commitment to this measure at the last election. As I noted in the House today, those opposite made the same commitment at the last election, that following the election we would work to come to an arrangement which would see the backpacker tax issue resolved by the end of the year, and on this last day of the sitting year this government has honoured the pledge we made at the election. We put forward 19 per cent to ensure that we could have these measures resolved in a budget-neutral way. And in the spirit of compromise, to honour our commitment and for this government to continue to get on with doing the job, we have been able to conclude an arrangement with senators in the other place to ensure that the taxation arrangements for backpackers will be set at 15 per cent. And what I said outside of this place is the government will not be returning these measures back to the Senate until we can be assured that the 15 per cent rate will be passed in the other place. I table a letter which gives that very assurance that the 15 per cent rate will be supported in the other place. I table that letter for the convenience of the House.

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