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

) ( ): My question is to the Treasurer. Last week, the Treasurer declared that there was no room for compromise on a backpacker tax of 19 per cent. Today, the Treasurer shouted that 15 per cent was a line in the sand. Is this the Treasurer's final position or just his latest? Why doesn't the government negotiate with the Senate the same way the Prime Minister negotiates with the hard Right of his party room and just give in?

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

I thank the member for his question. The 32½ per cent non-resident tax rate was set by the member for Lilley. And in the 2015-16 budget the government introduced a measure that sought to legislate that rate—

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

The Manager of Opposition Business, on a point of order. You will need to state the point of order.

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

I want to seek leave to table the measure from the 2015 budget which does not have the member for Lilley's name on it.

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

The Manager of Opposition Business will resume his seat. The Manager of Opposition Business—

Ms Henderson interjecting —

The member for Corangamite—I recognise the voice—will cease interjecting. The Manager of Opposition Business well knows two things: (1) he will not interrupt under a frivolous point of order to seek to table a document; (2) he certainly will not do that when it is a document that is already a paper of the parliament.

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

The member opposite clearly does not understand the point. The non-resident tax rate was set by the former government at 32½c. This government, in the 2015-16 budget, sought to introduce a tax rate for those on 417 and 462 visas at 32½ per cent to recognise them as non-residents; the non-resident rate of 32½ per cent being set by former Treasurer, the member for Lilley.

That 32½ per cent—that measure—was taken to the last budget and it was actually taken to last election not just by those on this side of the House but by those on that side of the House. The member opposite who asked the question put it in his forward estimates that the legislated tax rate would be 32½ per cent—he put those in his numbers. They had exactly the same position as the government. We were going to defer it for six months to come to a point of resolution. Now, the government in this last six months honoured that commitment by working through with our good members to come to a fair and reasonable position at 19 per cent, which represented the parity position—indeed, better—in the pocket for backpackers if they worked in Australian as opposed to working in other places. Now, in the spirit of compromise, in order to secure the support of those in the other place, we compromised to 15 per cent. That is the seasonal worker rate—the headline rate for seasonal workers at 15 per cent. That is an entirely reasonable position.

Those opposite on this issue have just been playing political games with the livelihoods of people in rural and regional communities. They have treated this like political sport. They have sniggered and they have jeered, and they have congratulated themselves and they have got all very excited. But the fact is the government has been implementing its election commitment to resolve this issue in a reasonable and practical way. Those opposite are playing political sport on this issue. Even what we have seen today has been a continuation of the games. The government has a reasonable position on the table. Those opposite should grow up and support it.